not vested
PayPal: Can Acquisitions Keep PYPL Stock Alive?
PayPal seems to be trying to expand, but can PYPL stock thrive without eBay?
By Hilary Kramer
Source: Game Changers
http://investorplace.com/2015/10/paypal ... hBuNdIirIU
P2P really started to take off with the advent of smartphone apps like Venmo, a leader in the industry. Venmo is growing at a rapid pace – after processing $7.5 billion in payments in 2015, the company eclipsed that total in 2016, processing $12.1 billion in payments in just the first three quarters of 2016 (according to the latest data).
Venmo doesn’t make money through advertisements or one-on-one transactions. The use of a debit card or a connection to a bank account makes the use of the service absolutely free. It’s when a user pays with a credit card that part of the 3% card processing fee goes into Venmo’s pockets.
PayPal has over 197 million (as Q4 2016) active accounts worldwide.
in 2015, PayPal acquired Braintree, which previously acquired Venmo.
Venmo is much more popular with millennials than PayPal.Me, and adds substantial value to PayPal’s P2P future.
Users are not fans of setting up the complicated Google Wallet system
In the second quarter, PayPal saw a 20% increase in revenue and a 26% gain in payment volumes, beating earnings forecasts.
PayPal this morning announced its mobile payments service Venmo is now available at over 2 million online U.S retailers, allowing Venmo users to shop on the mobile web at almost everywhere PayPal is accepted today. This includes popular retailers like Lululemon, Forever21 and Foot Locker via the mobile web, the company says.
As with PayPal, eligible purchases bought using Venmo online will qualify for purchase protection, too. For example, consumers can request a full refund if they don’t receive an item or if it’s significantly different than described.
The move to make Venmo an online checkout option will give merchants a better way to attract millennial shoppers, PayPal explains, as the customer base for the social payments app skews millennial and its users are heavily engaged.
“Offering a way to pay at millions of retailers is a major step in the evolution of Venmo,” said Bill Ready, Chief Operating Officer of PayPal, in a statement. “Our vision for Venmo is to not only be the go-to app for payments between friends, but also a ubiquitous digital wallet that helps consumers spend wherever and however they want to pay, regardless of device,” he added.
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The most exciting news is the launch of PayPal’s Venmo peer-to-peer payment solution. It was up 93% in Q3 to $9.4 billion.
PYPL’s payment system isn’t platform dependent. It works with Android, iOS and isn’t linked to larger banks.
PYPL stock is trading at price-to-earnings ratio of 58 with a nearly $90 billion market cap.
Bear in mind, this P/E reflects a 90% move in the stock without Q4 holiday numbers.
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