PayPal CEO Says Business Activism Can Help Drive ‘Point of No Return’ That Drives Social Change
An earlier version of this story incorrectly pointed out the movement in PayPal’s stock for the year. The title is up 55% since the start of the year.
PayPal Holdings Inc. CEO Dan Schulman says businesses have a key role to play in reaching the “tipping point” that can drive social change.
The payments technology company announced earlier in June that it is committing $ 530 million to help minority-owned businesses. PayPal
the commitment includes grants and investments in black and minority owned businesses.
Schulman said the grant money is crucial as black businesses regularly face greater barriers to traditional lending opportunities, according to a recent interview with CNET. “Even in good times, the amount of funding they can raise, whether it’s equity financing or just loans, is well below the national average,” he said. “But right now, it’s almost impossible for them to get a loan.”
Schulman said PayPal has already disbursed $ 10 million in grants, not loans, under the program.
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While the company does not have an end date for disbursing its full $ 530 million commitment, Schulman said PayPal wants to “start moving as soon as possible” while making sure it does. remains funds over a longer period of time. span.
“A little of [is] more short-term oriented, but we have also put in place a very large amount of money to help in the long term, because at some point the markets start to fade, but the problem still exists ”, a he declared. PayPal focuses on “multi-year commitments” beyond one-time grants, according to Schulman.
In Schulman’s opinion, the pandemic has given people more time to think about race issues in the United States, allowing them to “[tap] in the conscience of the country ”, although there is still work to be done.
“I think the key is to take advantage of this moment, whether it’s nonprofits, organizations fighting for social justice and the private sector to really step up, because I think things have to start tipping and then they hit a tipping point and then they keep moving, ”he said.
He said people must “do more than just condemn racism”. Instead, they must be “anti-racist”, which he means “must be part of the fight”.
PayPal has taken a stand on social issues in the past, banning social networking site Gab.com from using its services due to the presence of hate speech on the Gab platform before the 2018 Pittsburgh synagogue shooting. . PayPal’s Schulman argued that the company the larger mission also has a social component since PayPal’s digital financial tools can make money management easier for those without a traditional bank account.
PayPal stock has gained 55% year-to-date, while the S&P 500 index