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PayPal shares sink after CEO exit and weak 2026 profit outlook

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Shares of PayPal plunged after the company replaced CEO Alex Chriss and issued a disappointing profit outlook for 2026, rattling investors and raising fresh doubts about its turnaround strategy. The board named Enrique Lores, currently head of HP, as the new president and chief executive, saying the pace of change under Chriss fell short of expectations.

PayPal said Chief Financial Officer Jamie Miller will serve as interim CEO until Lores takes over on March 1. The abrupt leadership change came alongside a forecast that adjusted profit next year could range from a slight decline to modest growth, well below Wall Street expectations. Analysts said the combination of a sudden CEO exit and a muted outlook suggests deeper challenges in reviving growth.

The company continues to face pressure from slowing retail spending and intensifying competition from Big Tech and newer fintech rivals. PayPal also reported quarterly revenue and profit below estimates, while growth in its higher-margin branded checkout business slowed sharply, adding to concerns about its core payments franchise.

India sidesteps crypto and stablecoins at world’s largest fintech summit

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At India’s massive fintech conference in Mumbai, attended by over 100,000 participants and 800 speakers, two global financial buzzwords were conspicuously absent: cryptocurrencies and stablecoins. Despite Bitcoin’s record-breaking surge past $125,000, the three-day event — headlined by the prime ministers of India and the U.K. — avoided any discussion of digital assets amid the government’s cautious regulatory stance.

A speaker document obtained by Reuters explicitly instructed participants to “avoid political, crypto, religious, or personal remarks”, underscoring India’s reluctance to embrace the sector. While economies like Japan, Hong Kong, and Singapore are racing to become crypto hubs, India remains hesitant, opting instead to spotlight its central bank digital currency, the e-rupee, and other fintech innovations.

The Reserve Bank of India showcased pilots for deposit tokenisation and fintech sandboxes, while companies like PayPal and Revolut unveiled new products tailored for the Indian market.

Experts say the policy vacuum is chilling innovation. “Regulators need an iterative approach instead of complete aversion to stablecoins,” said Joseph Sebastian of Blume Ventures, who suggested limited adoption through U.S. dollar stablecoin remittances.

India’s fintech funding fell to $3.5 billion in 2023, its lowest since 2020, as entrepreneurs increasingly incorporate overseas to escape regulatory uncertainty. “It’s becoming real whether we like it or not,” said Vivekdeep Gupta, a digital assets consultant.

US Senate Passes Bill to Regulate Stablecoins, Boosting Corporate Adoption Prospects

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The U.S. Senate has approved the GENIUS Act, a bill establishing a regulatory framework for stablecoins, marking a significant milestone for the growing segment of cryptocurrency designed to maintain stable value, typically pegged 1:1 to the U.S. dollar. The bill’s passage is seen as a key step toward broader adoption of stablecoins by corporations worldwide.

Stablecoins facilitate crypto traders’ movement of funds between tokens, but clearer regulations have been lacking. The bill now moves to the Republican-controlled House of Representatives, where its version must pass before heading to former President Donald Trump’s desk for signing.

If enacted, the law will require stablecoins to be fully backed by liquid assets—such as U.S. dollars and short-term Treasury bills—and mandate issuers to publicly disclose monthly reserve compositions. Analysts believe this regulatory clarity could unlock wider use by companies across multiple sectors.

Several major firms are already engaged or exploring stablecoin initiatives globally:

  • Major U.S. Banks:
    Bank of America CEO Brian Moynihan has indicated possible stablecoin launches. Morgan Stanley seeks to work with regulators on crypto-related transaction roles. Both remain cautious, focusing on pilot programs or partnerships.

  • Societe Generale (France):
    Plans to issue a publicly tradable, dollar-backed stablecoin via its digital asset subsidiary.

  • Retail Giants Walmart and Amazon:
    Reports suggest recent exploration of stablecoin issuance, though Walmart denies current plans and Amazon has not commented.

  • Banco Santander (Spain):
    Considering digital asset expansion including early-stage stablecoin projects.

  • Crypto and Fintech Firms:
    World Liberty Financial launched a dollar-pegged stablecoin USD1 this year. PayPal released a U.S. dollar stablecoin in August 2023. Circle Internet’s USDC and Paxos’ stablecoins are among the largest. Tether’s USDT remains the largest by market cap, followed by MakerDAO’s DAI.

The GENIUS Act’s passage signals increasing regulatory acceptance of stablecoins, potentially accelerating their integration into mainstream corporate finance and payment systems.