PayPal is the largest debit electronic payment system. Allows customers to pay bills and purchases, send and receive money transfers. As of 2020, PayPal operates in more than 200 countries (although not all of them provide a full set of services), has more than 300 million registered users, and works with 25 national currencies.
The company’s main competitors are Visa and Mastercard.
Revenue for the last quarter: $6.0 B (+15% compared to the same period of the previous year)
Operating profit for the last quarter: $1.1 B (+10% compared to the same period of the previous year)
Net profit for the last quarter: $1.1 B (-30% compared to the same period of the previous year)
In recent years, the company has shown stable revenue growth every year
Geographical distribution of revenue:
United States – 51.33%
United Kingdom – 10.91%
Other countries – 37.76%
In the last few years, the company has been popular among investors. Since one of the main drivers of this industry is digitalization, the pace of which is accelerating in many developing countries. Paypal’s presence and revenue in emerging markets are small, so the growth potential for them is quite high.
Thus, # PYPL is a fintech company with an established business model. In addition, the company has a lot to grow and develop, because many developing and developed countries are potential markets for the company’s growth. However, at the current quotes, the company’s shares can be considered overvalued.