Payment processing, tap and go payments, digital cards, online payments and peer-to-peer involve some of the biggest names in corporate America. These aren’t the only places where the contest for market share is fraught with contenders. Both are important contributors to topline growth as well as customer onboarding. Primarily, PayPal’s Venmo and Block’s CashApp, are direct competitors in peer-to-peer payments. ![]() The two compete in several business segments. Like PYPL, SQ is a rapidly growing company, with compelling products and a strong business model. PayPal’s most direct competitor Block suffered an equally painful 2022, giving back five years of stock gains. Thus, the competition to capture that shift is vigorous. More than ever, transactions are becoming cashless, whether online or in person. The payments industry is in the midst of transformation. Additionally, PYPL’s valuation is now as low as it has been since it was spun out into a public company in 2015. The stock seems to have put in a floor though and has been building a base over the last 12 months signaling investor interest again. But the stock subsequently crashed nearly -80% in 2022 and performance is now flat over the last five years. However, following the Covid pandemic PayPal skyrocketed as investors blindly bid up shares of growth and technology companies. ![]() ![]() PayPal stock had been on a steady trajectory higher for several years, matching the returns of legacy competitor Visa. The digital payment solutions industry is a highly competitive one, and PayPal rivals include giants such as Visa V, Mastercard MA, Apple AAPL, Block SQ and others. However, even after posting such strong results PYPL traded lower in after-hours trading.
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