- PayPal Holdings, Inc. is doing very well and is showing how a top-notch technology firm can take advantage of a disrupted economy suffering from a major pandemic.
- Furthermore, PayPal is showing how it is developing a technology platform and network consistent with scalable “new” Modern Corporations to be competitive in the future.
- In one way or another, PayPal is going to play a role in the future payments system and, along with Ant Group and JPMorgan Chase & Co. will set standards.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading example of what is happening in the economy as the economy goes through the spread of the coronavirus pandemic and the related economic recession.
PayPal’s year-over-year total payment volume rose by 36 percent on a currency-neutral basis. This exceeded its second-quarter performance when total payment volume only increased by 30 percent.
This, to me, represents the future, a future that has been accelerated into the present by the disruptions the economy is now going through.
The near-term future will not be so “expansive” since the past two quarters especially benefitted from the unusual circumstances of the time.
But just because the performance may drop back from the current numbers, this doesn’t mean that investors should be concerned about the future.
The management of PayPal has prepared for the future and seems to be perfectly capable of meeting its competition. Investors should be very interested in this company.
PayPal Is Doing Its Job
Year-over-year, profits more than doubled.
PayPal processed $247 billion in payments in the third quarter. It grew in volume as other competitors, like credit card companies, actually faced a decline in transactions. Actually, the amount of credit card debt fell by $51 billion during the second quarter from a year earlier. The drop in the second quarter of $76 billion was the largest ever.
PayPal also added net new accounts of 15.2 million in the last quarter, as the movement from cash and checks to electronic payments picked up.
The company now has a wallet and peer-to-peer payments app, Venmo, and the value of transactions associated with it rose by 61 percent to $44 billion in the quarter.
