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PayPal (PYPL) Starts iPhone Tap to Pay for Venmo and Zettle Users
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PayPal (PYPL - Free Report) now brings an end to the wait for merchants using Venmo and Zettle apps to avail of Tap to Pay on iPhone.
With this feature, the company aims to empower businesses, especially the small ones, by allowing them to accept contactless payments directly on their iPhoneswithout additional hardware or upfront costs.
Businesses will now be able to accept contactless cards and digital wallets in minutes, resulting in streamlined operations and improved cash flow.
The sale proceeds collected by using this feature will get directly deposited to the Venmo or PayPal Zettle accounts of the businesses.
Also, the feature enables merchants to add taxes, accept tips, send receipts and issue refunds without any additional hardware support.
We believe that the latest move will likely drive PayPal’s momentum across small businesses.
Notably, the underlined feature is currently available for all Venmo business profiles and PayPal Zettle users in the United States.
The latest launch follows PayPal’s introduction of Tap to Pay on Android for Venmo and Zettle users last year, which was another initiative to empower small businesses with seamless payment options.
In addition to the Tap to Pay feature, the company offers various features that allow small businesses to accept payments made through PayPal, credit and debit cards, digital wallets, Venmo, PayPal Pay Later, and Apple Pay.
PayPal’s introduction of the ability for customers to add their PayPal and Venmo credit or debit cards to Apple Wallet remains noteworthy. It enables secure, quick and seamless payments on iPhone or Apple Watch, while earning cashback and rewards.
PayPal's subsidiary, Xoom, offers Debit Card Deposit, which allows U.S. customers to conveniently and securely send money directly to friends and family’s eligible Visa debit cards. It is available in 25 countries.
Apart from these, the company recently announced plans to introduce six AI-driven personalization innovations to revolutionize commerce for both merchants and consumers this year.
We note that the growing portfolio offerings will continue to drive PayPal’s customer momentum in the near term.
Wrapping Up
PayPal’s increasing interest in the expansion of its payment solution offerings has been playing a vital role in strengthening its presence in the booming online payment industry.
Per a report from Statista, the digital payment market is expected to hit a transaction value of $11.55 trillion in 2024 and reach $16.62 trillion by 2028, seeing a CAGR of 9.52% between 2024 and 2028.
The growth prospects of the company in this promising market are likely to continue driving its financial performance in the near term. This is likely to help it win investor confidence in the days ahead.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $7.5 billion, indicating growth of 6.6% from the year-ago quarter’s reported figure.
However, the company has been suffering from intensifying competition in the digital payment market, which poses a serious risk to its market position. It is witnessing a continuous loss of unengaged accounts, which remains another major concern.
PYPL has lost 4.8% in the year-to-date period against the industry’s growth of 17.4%.
Image: Bigstock
PayPal (PYPL) Starts iPhone Tap to Pay for Venmo and Zettle Users
PayPal (PYPL - Free Report) now brings an end to the wait for merchants using Venmo and Zettle apps to avail of Tap to Pay on iPhone.
With this feature, the company aims to empower businesses, especially the small ones, by allowing them to accept contactless payments directly on their iPhoneswithout additional hardware or upfront costs.
Businesses will now be able to accept contactless cards and digital wallets in minutes, resulting in streamlined operations and improved cash flow.
The sale proceeds collected by using this feature will get directly deposited to the Venmo or PayPal Zettle accounts of the businesses.
Also, the feature enables merchants to add taxes, accept tips, send receipts and issue refunds without any additional hardware support.
We believe that the latest move will likely drive PayPal’s momentum across small businesses.
Notably, the underlined feature is currently available for all Venmo business profiles and PayPal Zettle users in the United States.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Strength in Payment Solution Offerings
The latest launch follows PayPal’s introduction of Tap to Pay on Android for Venmo and Zettle users last year, which was another initiative to empower small businesses with seamless payment options.
In addition to the Tap to Pay feature, the company offers various features that allow small businesses to accept payments made through PayPal, credit and debit cards, digital wallets, Venmo, PayPal Pay Later, and Apple Pay.
PayPal’s introduction of the ability for customers to add their PayPal and Venmo credit or debit cards to Apple Wallet remains noteworthy. It enables secure, quick and seamless payments on iPhone or Apple Watch, while earning cashback and rewards.
PayPal's subsidiary, Xoom, offers Debit Card Deposit, which allows U.S. customers to conveniently and securely send money directly to friends and family’s eligible Visa debit cards. It is available in 25 countries.
Apart from these, the company recently announced plans to introduce six AI-driven personalization innovations to revolutionize commerce for both merchants and consumers this year.
We note that the growing portfolio offerings will continue to drive PayPal’s customer momentum in the near term.
Wrapping Up
PayPal’s increasing interest in the expansion of its payment solution offerings has been playing a vital role in strengthening its presence in the booming online payment industry.
Per a report from Statista, the digital payment market is expected to hit a transaction value of $11.55 trillion in 2024 and reach $16.62 trillion by 2028, seeing a CAGR of 9.52% between 2024 and 2028.
The growth prospects of the company in this promising market are likely to continue driving its financial performance in the near term. This is likely to help it win investor confidence in the days ahead.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $7.5 billion, indicating growth of 6.6% from the year-ago quarter’s reported figure.
However, the company has been suffering from intensifying competition in the digital payment market, which poses a serious risk to its market position. It is witnessing a continuous loss of unengaged accounts, which remains another major concern.
PYPL has lost 4.8% in the year-to-date period against the industry’s growth of 17.4%.
Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are CrowdStrike (CRWD - Free Report) , Badger Meter (BMI - Free Report) and AMETEK (AME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of CrowdStrike have gained 25.7% in the year-to-date period. The long-term earnings growth rate for CRWD is 36.07%
Shares of Badger Meter have gained 2.2% in the year-to-date period. The long-term earnings growth rate for BMI is 12.27%.
Shares of AMETEK have gained 8.4% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.