Light At The End of The Tunnelįirst of all, it’s important to note that even in the midst of an economic downturn and plateauing accounts growth, PayPal’s Total Payments Volume (or TPV) has continued to grow. But fortunately for the company's investors, there is hope for recovery. This cyclical factor might very well be another reason why PayPal’s accounts growth has plateaued, at least for the time being. PayPal has been leaving this market so far while its rivals have aggressively tapped this market in recent months.īesides, we’re in the midst of a recessionary environment, so disposable incomes and discretionary spending are generally strained across the globe. To put things in perspective, there were approximately 25.1 million US teens in the age group of 12 to 17 years in 2022. Cash App from Block ( SQ) went a step further in 2021, by offering accounts to users who are 13 years or older.Īlthough PayPal’s Venmo competes directly with Cash App, it has so far onboarded users who were 18 years or older only. ![]() Competing peer-2-peer money apps have propped up in recent years that offer a better user interface and more flexibility and integrations when it comes to money transferring capabilities. ![]() Now there are a number of reasons for this happening. This is fueling speculation amongst investors that, perhaps, the FinTech firm is no longer a growth company and maybe it’s succumbing to competitive pressures of late. Let me start by saying that the core issue that’s surrounding PayPal is that its user accounts growth has stalled. Let’s take a closer look to gain a better understanding of it all. In this article, I’ll address these key issues and attempt to explain why PayPal makes for a good buy at current levels. While these are legitimate concerns, the ground reality is not that dire. Investors are concerned that growing competition in the peer-to-peer space will nab away market share from PayPal and make it harder for it to grow going forward. Its shares have declined in value nearly 80% in the last 2 years as its user accounts growth decelerated and eventually plateaued in recent quarters. ![]() PayPal ( NASDAQ: PYPL) has been a nightmare for its shareholders of late.
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