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PayPal Links Boosts P2P Payments With Crypto & Global Reach

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Key Takeaways

  • PYPL introduces PayPal links for simple money transfers across conversations.
  • U.S. users can soon send crypto like Bitcoin and PYUSD via PayPal and Venmo.
  • Friends-and-family transfers remain exempt from 1099-K reporting on PayPal platforms.

PayPal Holdings (PYPL - Free Report) recently unveiled a new feature called PayPal links, which allows users to send and receive money through a personalized, one-time link that can be shared in any conversation. This feature aims to drive new customer acquisition and bring more users into the PayPal ecosystem.

The peer-to-peer (P2P) experience is set to improve even further with the integration of cryptocurrencies into PayPal's new P2P payment flow. U.S. users will soon be able to send Bitcoin, Ethereum, PayPal's stablecoin PYUSD and more to PayPal, Venmo and a growing number of digital wallets worldwide, expanding the reach and convenience of payments.

PayPal also reassures users by maintaining the exemption from 1099-K reporting for friends-and-family transfers through Venmo and PayPal. This means that gifts, reimbursements and expense splitting remain private without generating tax forms, ensuring personal payments stay personal.

P2P transactions are a critical part of PayPal's growth strategy. It helps users connect and engage, attracting more people to use PayPal. The company works on making the P2P process easier and better, especially for sending money across countries. With PayPal World unlocking seamless interoperability, P2P is poised for even greater momentum in the future as PayPal and Venmo connect to billions of wallets worldwide.

To conclude, the PayPal links initiative is a significant advance in making payments more convenient, secure and private. Combined with crypto integration and global expansion plans, it strengthens PayPal’s position as a leader in digital payments, providing users with a seamless and innovative payment experience.

How Are Block & Remitly Global Expanding in This Space?

Block, Inc.’s (XYZ - Free Report) strength lies in Cash App, which continues to serve as a financial hub for younger customers, while expanding into P2P, commerce, banking and bitcoin. It introduced new products like Cash App Pools for group payments and Afterpay integrations. Block’s Square Crypto initiative focuses on Bitcoin developer grants and Lightning Network adoption to boost Bitcoin’s payment utility.

Remitly Global (RELY - Free Report) is innovating P2P payments by launching flexible features like Remitly Flex, a "send now, pay later" cash advance, and integrating multicurrency digital wallets including stablecoins. These innovations enhance cross-border transfers, increase speed and improve financial inclusion for millions worldwide.

PYPL’s Price Performance, Valuation & Estimates

Shares of PayPal have declined 22.3% year to date, underperforming both the broader industry and the S&P 500 Index.

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From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 11.92X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 21.43X.

Zacks Investment Research
Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward over the past week. The Zacks Consensus Estimate for 2025 EPS suggests 12.5% growth year over year.

Zacks Investment Research
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PayPal currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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