PayPal is separating Venmo into a standalone business unit as part of a corporate restructuring under CEO Enrique Lores. This reorganization establishes three distinct segments within the company. Venmo will operate independently for the first time.
The new structure provides greater transparency into the app's financial performance. This change allows PayPal to track progress more effectively and simplifies a potential future sale of the business.
The company is currently recruiting a digital banking executive to lead the Venmo division. Lores aims to streamline operations and reinvigorate growth amid increasing competition in the digital payments sector. PayPal shares rose more than 2.5% following the announcement.