News

PayPal Faces Growing Skepticism from Wall Street Analysts

1 Mins read

These developments indicate a shifting landscape for PayPal and underscore the importance of addressing market challenges and adapting to changing consumer preferences.

PayPal and the Challenges in the Mobile Checkout Landscape

PayPal has established itself as a dominant player in desktop checkout, but it is facing challenges in the mobile arena. With more consumers now opting for mobile purchases, PayPal’s mobile checkout performance has not been as strong as its desktop counterpart. In contrast, Apple Pay, a mobile payment solution by Apple Inc., holds a better position in the mobile space compared to desktop.

Shares of PayPal experienced a 1.4% decline at the opening of Tuesday’s trading session.

While PayPal owns Venmo, renowned as the crown jewel of peer-to-peer payments in the U.S., it is encountering strong competition from platforms like Zelle. Additionally, PayPal seems to be struggling with improving Venmo’s monetization profile.

Interestingly, Dolev, a well-known expert in the field, suggests that Venmo’s core customer base consists of individuals who still rely on traditional banks for financial services. On the other hand, Square Inc.’s Cash App attracts customers who are in need of such services.

Dolev also sheds light on the margin challenges that PayPal is currently facing. The company is witnessing a significant proportion of its overall business being contributed by its lower-margin unbranded checkout product. This trend may continue to exert pressure on the company’s gross profit.

Don’t miss: Mastercard’s Market-Cap Reaches $400 Billion, Demonstrating Strong Spending Resilience

Related posts
News

Ethereum and Chainlink Whales Accumulate MAGACOIN FINANCE Before 2025 Breakout

2 Mins read
Whale moves are shaping the crypto market once again, with massive purchases sparking new debates about which assets will dominate the next…
News

Nvidia gives lukewarm forecast, stoking fears of AI slowdown - The Boston Globe

2 Mins read
President Trump said that philanthropist George Soros and his son should be charged with racketeering for allegedly supporting violent protests “and much…
News

Bitcoin Slides as Investors Hope For Bullish Price Action - Tekedia

2 Mins read
Bitcoin has continued to extend its losing streak on Tuesday. According to CoinDesk data, the world’s largest digital asset dropped 2.6% in…

Leave a Reply

Your email address will not be published. Required fields are marked *