PayPal (NASDAQ:PYPL) went public on the Nasdaq on Monday, after completing its split from eBay (NASDAQ:EBAY). Acquired by eBay for $1.5 billion in 2002, PayPal has grown to a company with a market cap of $49 billion, now larger than eBay’s $34 billion value.
The spinoff was first announced 10 months ago at the urging of activist investor Carl Icahn. The idea was that PayPal was a high growth company whereas eBay was viewed as a value stock.
In an interview with FOXBusiness.com, PayPal Senior Vice President and Head of Merchant Bill Ready said that the company has a lot more room for growth. “We’re at 1% of our potential with so much more to go.”
One of the biggests forces behind PayPal’s momentum is Braintree, the mobile payments platform utilized in Uber, Pinterest and Airbnb. The technology is used to make app transactions seamless and efficient.
PayPal also owns Venmo, a peer-to-peer payments app that is gaining traction with Millennials. The company acquired Xoom transfer payments last week.
Some analysts are speculating that both eBay and PayPal could make acquisition targets, now that the spinoff is complete. When asked, Ready told FOXBusiness.com, that the company is focused on staying independent.
Ready also spoke about cyber security saying that it is a core focus for the company. It’s been in “PayPal’s DNA since day one.” Confidence in cybersecurity is why “the digital wallet is moving from a nice-to-have to a must have.”
Shares traded up 5% on Monday and closed at $40.47.