PayPal is making Venmo a separate business unit as part of a broader reorganisation under chief executive Alex Chriss to sharpen its focus on growth.
The payments group will adopt a simplified three-business operating model consisting of Checkout Solutions & PayPal, Consumer Financial Services & Venmo, and Payment Services & Crypto.
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Under the new structure, Venmo will sit within the newly created Consumer Financial Services & Venmo division, which PayPal said will build on the app’s momentum and expand it into a broader consumer financial services platform.
The overhaul is part of a wider reshaping of PayPal’s business and executive leadership team intended to accelerate execution of its long-term growth priorities, streamline decision-making and drive innovation.
PayPal also announced a series of leadership changes tied to the reorganisation. Frank Keller has been appointed president of Checkout Solutions & PayPal.
Alexis Sowa will serve as interim lead of Consumer Financial Services & Venmo, while Jeff Pomeroy has been named interim lead of Payment Services & Crypto.
Anshu Bhardwaj has been appointed chief AI transformation & simplification officer.
The changes are accompanied by the departure of two senior executives. Diego Scotti, who served as EVP and general manager, Consumer Group, is leaving the company.
During his tenure, Scotti oversaw the acceleration of Venmo’s growth and monetisation and led the launch of products and businesses including PayPal Everywhere, PayPal+, and PayPal Ads.
Michelle Gill, EVP and general manager, Small Business & Financial Services Group, will also leave PayPal.
PayPal CEO and president Enrique Lores said: “To accelerate growth and unlock our full potential, we need to recommit to our fundamentals—getting much closer to the consumer, aligning the company around three strong businesses, simplifying how we work, sharpening accountability, and prioritising operational excellence.
“By aligning our structure with our strategy in this simplified approach, we will be better equipped to drive sustainable growth and value creation for PayPal, our customers, and our shareholders.”
The restructuring comes months after Bloomberg reported that payments firm Stripe was considering an acquisition of PayPal or parts of the company.
PayPal said it will provide further details on the new operating model during its earnings call on 5 May.
