PayPal…like a startup?
The Next Web: Looking at what you were doing before PayPal, I note you were involved in a lot of young startups? It sounds like you’re an entrepreneur at heart!
Holger Spielberg: Yes, that was a lot of fun.
The Next Web: So, how does working in that sort of entrepreneurial environment differ to working at a huge company such as PayPal?
Holger Spielberg: PayPal Germany feels like the biggest startup I’ve ever worked in.
The Next Web: Ha, that was going to be one of my next questions…
Holger Spielberg: It’s very dynamic, great people, a good roadmap and it’s all based on a viable business model.
The Next Web: You mentioned earlier that you’re “hiring, hiring, hiring” – how big is your hub at the moment and how are you growing?
Holger Spielberg: We currently have about 95 people in Germany, and will add another 40 by the end of 2011.
The Next Web: How many are in innovation?
Holger Spielberg: I just started that department in January. We are 3 people full-time now, plus we have direct access to virtual organisations in ‘product’. Oh, and I’m also hiring a Developer Evangelist, someone skilled in developing SW, but also able to communicate, present and ignite innovation in the developer community.
The Next Web: That sounds very cool. I’m particularly interested in the issue of innovation, and how big companies can stay innovative. My question is – how do you feel PayPal stays innovative, and how does the culture promote that?
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We also have an internal innovation platform. Every employee can enter ideas, which is then voted on internally. This can be related to …anything. ~ Holger Spielberg
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Holger Spielberg: Well, the biggest engine is internal product development. That is mostly focused on the payment side of things and strategic developments. We also have x.com, which is an open developer platform to engage external innovation, especially in mobile, couponing etc. You might have also heard we are active in mergers and acquisitions to create a field of innovation gravity around us. We also have an internal innovation platform. Every employee can enter ideas, which is then voted on internally. This can be related to payments, internal processes…anything.
The Next Web: So are you open to acquiring younger startups in your field? I note that Visa invested in Square recently?
Holger Spielberg: We just acquired BillSafe in Germany, Where in the US and there are others in the pipeline. BillSafe will continue to sell under its own brand and will gradually be integrated into full PayPal offering.
The Next Web: Would you agree that acquisitions can kill off innovation? And if so, what do you actively do to ensure this doesn’t happen in companies you buy?
Holger Spielberg: Innovation is the realization of an idea. So you have to bring ideas into business reality. That sometimes is not innovative, but pure execution. It basically comes down to what field of thought and innovation you offer the talent in the companies. In the EU context, I believe PayPal has an excellent innovation culture. The markets here push us to innovate.
The Next Web: Ah, so because your industry is so fast-paced and evolving all the time, you really can’t stand still?
Holger Spielberg: Correct.