PayPal (PYPL) Unveils Tap to Pay for Venmo and Zettle Users
PayPal Holdings PYPL is leaving no stone unturned to expand its reach to small businesses on the back of its robust solutions.
The recent introduction of Tap to Pay on Android in Venmo and PayPal Zettle testifies the aforesaid fact.
With this feature, the company aims to empower businesses, especially the small ones in the United States, by allowing them to accept contactless payments directly on their mobile devices without additional hardware or upfront costs.
Businesses will now be able to accept contactless cards and digital wallets in minutes, thus resulting in streamlined operations and improved cash flow.
Notably, Tap to Pay on Android is currently available for Venmo business profile users on early access request and for all PayPal Zettle users. It will soon be available for all Venmo business profile users.
We believe that the latest move will likely drive PayPal’s momentum across small businesses.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Expanding Payment Solution Offerings
Apart from its latest move, PayPal recently strengthened its payment solution offerings for small businesses by adding new features. The features allow small businesses to accept payments made through PayPal, credit and debit cards, digital wallets, Venmo, PayPal Pay Later and Apple Pay.
Furthermore, PayPal introduced Passkeys for Android devices, which deliver a secured log-in and password-free safe payment experience.
Additionally, PayPal's subsidiary Xoom introduced Debit Card Deposit, which allows U.S. customers to conveniently and securely send money directly to their friends & family’s eligible Visa debit cards. It is available in 25 countries.
Further, PayPal introduced a feature that enables Venmo users to transfer cryptocurrencies to their friends and family seamlessly.
We note that the growing portfolio offerings will continue to drive PayPal’s customer momentum in the near term.
Growth Prospects
PayPal’s increasing interest in the expansion of its payment solution offerings has been playing a vital role in strengthening its presence in the booming online payment industry.
Per a report from Statista, the digital payment market is expected to hit a transaction value of $9.46 trillion in 2023 and reach $14.78 trillion by 2027, registering a CAGR of 11.8% between 2023 and 2027.
Moreover, the growth prospects of the company in this promising market are likely to continue driving its financial performance in the near term. This is likely to aid the company in winning investors’ confidence in the days ahead.
The Zacks Consensus Estimate for 2023 revenues is pegged at $29.51 billion, indicating a 7.2% increase from 2022.
Coming to price performance, PYPL has lost 3.3% in the year-to-date period against the industry’s rally of 48.9%.
Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader technology sector are Palo Alto Networks PANW, Akamai Technologies AKAM and AMETEK AME. Palo Alto Networks and Akamai Technologies sport a Zacks Rank #1 (Strong Buy) each, while AMETEK carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Palo Alto Networks shares have surged 84.8% in the year-to-date period. The long-term earnings growth rate for PANW is currently projected at 31.5%.
Akamai Technologies shares have increased 7% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected at 10%.
AMETEK shares have risen 13.4% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 8.95%.
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