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Yahoo
10-07-2025
- Business
- Yahoo
Visa in a Wallet-Driven World: Can It Stay Indispensable?
Long regarded as a pioneer in card-based payments, Visa Inc. V is currently navigating a market where smartphones are taking over, and physical wallets are becoming less common. Customers are adopting digital wallets that hold everything from credit cards to cryptocurrency assets, from tap-to-pay at nearby establishments to biometric authentication in smartphone apps. To achieve this, V has quickly adapted its digital strategy. Its Visa Token Service replaces sensitive card information with secured tokens, facilitating transactions for platforms like Apple Pay and Google Pay. By integrating itself into the backend of digital wallets, the company stays relevant even when physical cards are out of the picture. Visa's processed transactions grew 9% year over year in the second quarter of fiscal 2025. Visa is also stepping up in the cryptocurrency world by teaming up with various crypto platforms, rolling out crypto-linked Visa cards and looking into stablecoin transactions on blockchain networks. This move reflects its effort to stay relevant as the landscape of money continues to change. The company's extensive reach is a game changer. With its massive acceptance network and collaborations with fintech, neobanks and major tech companies, V is in a position to adapt and thrive. The challenge lies in staying essential in a world where people may skip traditional card networks entirely, opting instead for real-time payments or decentralized systems. In this wallet-driven and crypto-curious age, the company's future hinges on evolving beyond just being a card company. Keeping that competitive edge will require ongoing innovations and investments. Some of V's competitors in the digital wallet space include Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL. Mastercard is in a race with Visa when it comes to embracing digital wallets and other alternative payment options. Mastercard has invested significant resources in tokenization and contactless payments to stay ahead of the market. It is focused on staying embedded in the background of digital wallet ecosystems instead of competing directly with them. PayPal is operating its own digital wallet, with features like PayPal Checkout, Venmo and even crypto trading within the app. PayPal directly connects with users instead of operating behind the scenes. Additionally, it is making a push into in-store payments with QR codes and contactless options. Shares of Visa have jumped 13.2% in the year-to-date period compared with the 5.4% growth of the industry. Image Source: Zacks Investment Research From a valuation standpoint, V trades at a forward price-to-earnings ratio of 28.76, above the industry average of 22.76. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Visa's fiscal 2025 earnings implies a 12.9% jump from the year-ago period. Image Source: Zacks Investment Research Visa stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
28-05-2025
- Business
- Business Standard
PayPal receives RBI nod to operate as cross-border payment aggregator
PayPal Payments Pvt Ltd (PayPal), the Indian subsidiary of PayPal Holdings Inc, has received in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment AggregatorCross BorderExports (PA-CB-E). This marks a key milestone in PayPal's operations in India and its continued support for Indian small businesses, enabling secure cross-border payments to approximately 200 markets, the company said in a statement. The approval comes as India's exports reached USD 73.8 billion in April 2025, underscoring the increasing momentum in cross-border trade. "The in-principle PA-CB-E approval by RBI is a significant milestone for PayPal. It reflects the strength of India's regulatory vision and the progress toward seamless, secure cross-border transactions. As India grows into a global export hub, PayPal remains committed to empowering Indian businesses with trusted digital payment solutions," Nath Parameshwaran, Senior Director - Government Relations at PayPal India, said. With a growing suite of localised offerings, such as PayPal Checkout, PayPal Invoicing and No-Code checkout tools, PayPal is focused on simplifying global selling for Indian small businesses. PayPal has a track record of innovating at every major inflection point in commerce over the last 25 years, Abid Murshed, Head of Sales at PayPal India, said. Also Read "We have been operating in India for more than a decade, enabling small businesses and freelancers to participate in global commerce through trusted and secure payment solutions. As trade dynamics shift, presenting new challenges and opportunities, we stand by our customers as they expand into new trade corridors and meet evolving global customer expectations," Murshed added. The in-principle approval allows PayPal to continue offering cross-border payment services within a regulated framework, supporting Indian merchants with enhanced consistency, transparency, and security in their global transactions, it said. This opens new avenues for localised product innovations, improved customer experiences, and enhanced access to PayPal's global payment network for large enterprises, small businesses, and freelancers in India, it added.
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Should You Buy PayPal Stock on the Dip in May 2025?
PayPal (PYPL) stock is in focus after announcing its first-quarter results that met or beat analyst estimates. The company also maintained its full-year guidance and pleased Wall Street with proof of improvement in its operations. Mizuho analyt Dan Dolev pointed to 'signs of strength' with PayPal increasing branded checkout volume and exceeding transaction margin expectations. This reinforces that that CEO Alex Chriss' revival plan is taking hold in stages. The larger fintech landscape has been mixed in the face of macroeconomic volatility and increased competition. However, PayPal's concentration on achieving profitable growth through its branded checkout business is beginning to reap tangible benefits. Some analysts believe that the worst may be over for the payment technology behemoth. About PayPal Stock San Jose, California-based PayPal (PYPL) is a global leader in payments and e-commerce transaction processing, operating popular platforms such as PayPal Checkout and Venmo. With a market cap of around $65 billion, PayPal is also a significant player in the financial technology industry despite current competitive challenges. PayPal stock has dropped about 5% in the last 12 months and is down nearly 25% in the year-to-date. However, signs of a recovery are starting to emerge. Shares are up nearly 4% over the past five sessions and are trading more than 15% above their 52-week low. The valuation is also attractive at the current levels. PayPal is trading at a forward price-earnings multiple of 13x and a price-sales multiple of 2x, both lower than its historical norms and those of peers in the fintech industry. An 11.6x price-to-cash flow ratio and return on equity of close to 24% reflect good underlying health and imply the stock may be undervalued compared with its profitability prospects. PayPal Tops Q1 EPS Estimate, Maintains 2025 Guidance PayPal posted Q1 2025 earnings of $1.33 per share, 15% higher than Wall Street's expectation of $1.16. Revenue was $7.8 billion, in line with expectations and higher by 1% compared to the same quarter of the previous year. It is worth mentioning that adjusted EPS increased 23% year-over-year, which is the fifth consecutive quarter of profitable growth since CEO Alex Chriss took over. For the rest of 2025, PayPal upheld its earlier business outlook, which analysts read as a vote of confidence in the face of a complex macroeconomic environment. Improvement in profitability, particularly in its branded checkout and unbranded payment solutions, remains a focus of management. Some of the key points during the quarter include 6% growth in branded checkout dollars (adjusted to remove leap-year impact), 20% growth in Venmo and more than 60% growth in debit card business. Transaction margin dollars, a measure of profitability, hit $3.7 billion and beat guidance, icnreasing faster than the growth in revenue and total payment volumes. What Analysts Expect from PayPal Stock Based on Barchart's Analyst Ratings snapshot, PayPal has a consensus 'Moderate Buy' recommendation. There are currently 44 analysts covering the stock, with 17 setting the stock to 'Strong Buy' and 22 to 'Hold.' The stock also has two 'Moderate Buy' ratings and three 'Strong Sell' ratings. This reflects the cautionary optimism surrounding the rebuilding of the company's momentum amid a competitive payments environment. PYPL has a mean target price of $82.84, representing 28% upside potential here.
Globe and Mail
25-04-2025
- Business
- Globe and Mail
Should You Buy, Sell, or Hold PayPal Stock Before Q1 Earnings?
PayPal PYPL is set to report its first-quarter 2025 results on April 29. PYPL expects flat to low single-digit revenue growth on a currency-neutral basis for the to-be-reported quarter. Non-GAAP earnings are expected between $1.15 per share and $1.17 per share, suggesting 6-8% growth on a year-over-year basis. The Zacks Consensus Estimate for first-quarter revenues is pegged at $7.83 billion, indicating an increase of 1.64% from the year-ago quarter's reported figure. The consensus mark for earnings stands at $1.15 per share, down by a penny over the past 30 days, suggesting a decline of 17.86% from the figure reported in the year-ago quarter. PayPal's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 14.26%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Let's see how things have shaped up for the upcoming announcement. Strong Portfolio, Rich Partner Base to Aid PYPL's Q1 Results PYPL's first-quarter results are expected to reflect portfolio strength. Fastlane, which enhances the guest checkout experience by allowing users to complete their purchase in one click, remains noteworthy. Strong monetization efforts of Venmo are likely to have aided Total Payments Volume in the to-be-reported quarter. PYPL's rich partner base, which includes Amazon AMZN, Shopify SHOP, Apple, Alphabet and Meta Platforms META, has been a key catalyst. The integration of PayPal and Venmo credit or debit cards into Apple Wallet has been a noteworthy development. PayPal is now an additional processor for Shopify Payments in the United States. Its branded checkout solutions are now integrated into Shopify Payments. This creates a single and unified experience for business owners to drive operational efficiency. PayPal's partnership with Amazon now brings PayPal Checkout to SMBs, offering Buy with Prime. Its collaboration with Apple and Google to integrate the Venmo debit card with Apple Pay and Google Pay has been a noteworthy development. PayPal is a top payment method for advertisers and consumers globally across Meta Platforms' family of apps. Creators and developers are using Hyperwallet. META also uses Braintree for credit card processing. PayPal is expanding value-added services to boost the merchant experience. In the fourth quarter of 2024, PYPL launched FX-as-a-service, which is an automated currency conversion, and the platform is already live on Meta Platforms. PYPL's network tokens for automated billing capabilities are live with merchants, including Instacart, Mint Mobile and Poshmark. Expanding value-added services is expected to drive transaction margin in dollar terms. PayPal Everywhere, which was launched in September 2024, is driving significant increases in debit card adoption and opening new categories of spend. PYPL Shares Underperform Sector, Industry Paypal shares have declined 23.8% year to date, underperforming the Zacks Business Service sector's fall of 2.8% and the Zacks Internet Software Industry's drop of 0.8%. PYPL Stock's Performance Image Source: Zacks Investment Research PayPal stock is cheap, as suggested by the Value Score of B. In terms of the forward 12-month Price/Sales ratio, PYPL is trading at 1.91X, lower than the industry's 6.33X. Price/Sales (P/S) Ratio PayPal Benefits From Expanding Portfolio Portfolio strength has been helping PayPal maintain deep and trusted relationships with merchants and consumers. Its two-sided platform helps develop direct financial relationships with customers and merchants. PYPL's investments in improving branded checkout, person-to-person (P2P) and Venmo helped in driving total active accounts. Strong adoption of Fastlane is expected to boost future volumes as PYPL ink deals with NBCUniversal, Roku and StockX. PayPal expects transaction margin in dollar terms (ex-interest on customer balances) to grow at least 5% in 2025 and high-single-digit growth for 2027. Over the long term, this is expected to grow at more than 10%. PYPL - Buy, Sell or Hold? PayPal rides on the growing demand for peer-to-peer payments and digital wallets. Hence, investors who already own the stock may expect PYPL's growth prospects to be rewarding over the long term. However, PYPL's near-term prospects are full of challenges due to challenging macroeconomic conditions, unfavorable forex, and sluggish consumer spending. PayPal currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
Yahoo
24-04-2025
- Business
- Yahoo
PayPal Partners With Coinbase and Rolls Out Rewards System for PYUSD Holders
PayPal is shaking up the cryptocurrency space with two big changes, including a new rewards system and a new partnership with Coinbase for PYUSD stablecoin, PayPal's cryptocurrency that launched in 2023. The world of cryptocurrency is constantly evolving, but these changes could be important if you're holding PYSUD in your PayPal or Venmo wallet. Here's what the two announcements Thursday mean for your crypto earnings and what else you can expect from the online payment system. Starting this summer, PayPal will launch a new rewards system for anyone holding PYUSD can earn rewards at 3.7% annually on stablecoin you keep in your PayPal or Venmo wallets, and you can continue to accrue rewards daily and be paid out monthly. The rewards will be directly added to your cryptocurrencies hub. You'll receive the annual boosted rewards in the form of PYUSD on PayPal, where you can use the rewards immediately. "Consumers and businesses use PYUSD today for commerce, crypto, peer-to-peer transfers and B2B payments," Alex Chriss, PayPal's president and CEO, said in a statement. "We're demonstrating our commitment to an innovative, commerce-ready ecosystem by enabling it for the settlement of cross-border transfers, vendor payments and in the future for additional payment use cases like payouts and bill pay." While holding onto PYUSD can potentially help you maximize your earnings, you can use your rewards at any time in a few ways, including: Foreign transactions, such as remittances, without transaction fees Send rewards directly to other PayPal or Venmo users Convert rewards into US dollars for your PayPal or Venmo balance Make purchases using PayPal Checkout Convert rewards to other cryptocurrencies Send onchain to supported ethereum and solana blockchains You can opt in or out of the program at any time and redeem your rewards for US dollars. However, it's important to note how earning crypto rewards differs from earning US dollars. If you put money in high-yield savings account with a 3.7% APY, for instance, any money you earn in interest retains its value. So if you earned $5 in interest, you'll still have that $5 next month, even if the account's APY contrast, if you earn 3.7% rewards in PYUSD valued at $40 one day, it could be worth $3 next month (or the next day). Crypto, similar to the stock market, fluctuates in value but is considered much more volatile. HYSA rates also tend to move in the same direction as the central bank and don't typically rise or fall drastically. There are also tax implications to selling and using crypto. If you hold your crypto for less than a year before selling or spending it, it's taxed at your ordinary income rate. If you sell or trade crypto, it's best to speak with a tax professional when it's time to file your taxes. PayPal's stablecoin news also includes a new partnership with Coinbase. PayPal and Coinbase, a popular cryptocurrency exchange, partnered on Thursday to explore more ways to use stablecoin, PayPal said in a statement. As a part of the partnership, Coinbase will offer fee-free purchases and 1:1 redemption of PYUSD. The partnership will also expand the availability of PYUSD to Coinbase customers and financial institutions. PayPal and Venmo customers can also redeem PYUSD for US dollars on Coinbase platforms. Sign in to access your portfolio
