Millennials are changing a host of industries, but perhaps none more drastically than the financial technology space, PayPal CEO Dan Schulman told CNBC on Monday.
"You have to, to serve these markets, re-imagine how money can be managed and moved because there's going to be more change in the next five years in financial services than happened in the past 30," Schulman told "Mad Money" host Jim Cramer.
PayPal's peer-to-peer payment app, Venmo, speaks volumes to the way younger generations interpret money management, the CEO said.
"If you think about the under-30 generation, the millennial generation – GenTech, as I call them – they grew up with a screen in front of them. And so they think about everyday processes, like payments, differently than you and I do," Schulman told Cramer. "The public-private boundaries are different than what you and I grew up with."
"For Venmo, they put a tag or an emoji on every one of their payments," Schulman continued. "It's really not a P2P service, it's a social payments experience. And they love doing it. They open the app just to see what their friends are doing."
Today, Schulman said the person-to-person payment business is valued between $35 billion and $40 billion. In five years, its projected value is estimated to reach $335 billion.
Similarly, "online digital payments today are about $3 trillion," the CEO said. "By 2020, three years from now, it's supposed to be over $8 trillion. And we're a leader in that market right now with 218 million people using the platform, so we just got to keep delivering on what customers want, merchants want and to stay that market leaders."