PayPal ‘has long term potential’ says fintech expert

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Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO of FXcompared and has 18 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely… Read more
  • PayPal stocks dropped recently due to short-term issues, but an expert says it is still a good company to invest in
  • One of PayPal’s most valuable assets is Venmo, its person-to-person platform
  • The brand is still growing and its long-term potential is looking good

 

An expert in the world of financial technology says that stock traders need to invest in PayPal's stock, one of the world’s most well-known payments brands. Fintech expert and Motley Fool contributor Jordan Wathen says that individuals who want financial stocks with high growth potential will need to “look beyond banks and insurers”, noting that PayPal “has long term potential”.

Other contributors warn that investors shouldn’t be distracted by what is currently happening in the market. Growth has been relatively slow in the United States and the financial sector is still recovering from the Wall Street slump last December. Although there are many factors as to why PayPal’s stocks fell, the brand has been working on partnerships in different parts of the world. It has also continued to improve upon its remittance service Xoom.

PayPal has been a go-to service for people who need to transfer money internationally but don’t have the time to go to a remittance centre. While other payments brands offer similar services, PayPal is still among the most trusted and the most accessible. The paytech giant also offers affordable overseas transfer rates, making it a popular choice.

PayPal’s potential is anchored on its solid reputation, and its recent partnerships will likely increase its value soon, according to observers. “I'm generally a fan of any stock that stands to benefit from the gradual shift toward a cashless society, as I feel that the so-called War on Cash will be one of the greatest investment opportunities over the coming decades”, PayPal’s Matt Frankel said last week.

Experts note that Frankel’s statement is especially applicable to stock drops of well-known and “excellent fintech brands” whenever they come across a hiccup. PayPal is in this very situation and its value slumped after releasing its latest report. The paytech has not yet recovered.

The company’s future is looking well though as it is still growing. The growth is impressive and as countries push to go cashless, PayPal’s revenue will grow. PayPal reportedly got new clients onboard last year, adding 31% more to its numbers in 2017. The Motley Fool also added that payment volume grew in Q4 too, and it was at an impressive 27%.

Statistics from the company indicate that the payment provider processed over $578 billion in the year 2018. According to reports, the numbers represent 28% growth from the previous year. In 2017, the paytech giant’s payment volume reached $102 million. Experts believe that these numbers will keep growing over the coming years.

Apart from its subsidiary Xoom, PayPal also has Venmo, its person-to-person payment service. Observers say that Venmo is one of the brand’s most valuable assets.

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