Chit Chat Stocks PayPal (Ticker: PYPL) Not So Deep Dive
Jun 6, 2023
Dive into the world of PayPal as hosts explore its unique array of products and the economics behind the famous 'PayPal button.' They discuss the competition from platforms like Apple Pay and Zelle, and how Venmo's peer-to-peer payments contribute to the mix. The conversation highlights recent leadership changes and the potential growth from Braintree and Venmo monetization. Listeners will be intrigued by financial snapshots, the balance sheet analysis, and insights on the digital payments industry's future.
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Ulta Checkout Test Example
- Ryan tested Ulta's checkout flow and found both a native checkout and a 'Pay with PayPal' button as options.
- He did not complete the purchase but used the example to illustrate different PayPal checkout types.
Huge Secular Tailwind Remains Intact
- Digital payments volume is large and still growing; US digital payments were about $2T in 2023 and may reach ~$4T by decade end.
- That secular growth provides a durable tailwind for PayPal and peers.
Competition Is Really About The Touchpoint
- Competition splits across merchant-facing processors (Stripe, Adyen) and consumer-facing wallets (Apple Pay, Google Pay, Cash App).
- Any rival that captures the merchant or consumer touchpoint can steal PayPal's toll-road take rates.
