PayPal Holdings, Inc. ( PYPL Quick Quote PYPL - Free Report) gears up to boost its clientele with the passage of the second COVID-19 relief bill. The company has waived the PayPal cash-a-check feature’s check-cashing fees for government stimulus paper check recipients. Further, during the first wave of stimulus payments, customers, who received stimulus payment using PayPal or Venmo Direct Deposit feature, will now be able to get their payment automatically via PayPal and Venmo. Notably, this is applicable tothose who are eligible for the second payment. With the latest move, the company aims toenable the customers to cash their checks and access them within a few minutes, without visiting a physical check-cashing location. Customers will just have to take the picture of their check within the app and send it for review. Move to Benefit
Notably, these benefits are likely to bolster the adoption rate of the cash-a-check feature as it ensures health and safety by allowing the customer to en-cash the stimulus check by staying at home.
This remains a major positive and crucial amidthe current coronavirus-induced health crisis. Moreover, in the current scenario, where consumer’s preferences to make online and contactless transactions, and stay away from physical dealings as a preventive measure, owing to social distancing,is spurring, PayPal with its fee waiver move is well-poised to gain investor optimism. Hence, we believe that the company will witness growth in its customer base on the back of its latest move during the ongoing pandemic, which has caused disruptions to several businesses and individuals. This, in turn, will drive the company’s top-line growth in the near term. Coming to price performance, shares of the company have returned 125.1% on a year-to-date basis, outperforming the industry’s rally of 121.8%.
The latest move bodes well for PayPal’s strong efforts to help the society in combating the coronavirus-led financial disruptions.
Moreover, it is in sync with the company’s growing endeavors to deliver enhanced customer experience via its innovative products and services. Further, the move is expected to strengthen the competitive position of PayPal against its strongest peer Square ( SQ Quick Quote SQ - Free Report) . Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks in the broader technology sector are Digital Turbine, Inc. ( APPS Quick Quote APPS - Free Report) and Garmin Ltd. ( GRMN Quick Quote GRMN - Free Report) . Both companies currently carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. Long-term earnings growth rates for Digital Turbine and Garmin are currently pegged at 50% and 6.8%, respectively. More Stock News: This Is Bigger than the iPhone!
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