Tag Archives: pypl

PayPal Leads In Converting Buyers Online: ComScore Study

PayPal ( PYPL ) and its One Touch authentication technology lead all of its competitors in converting buyers online, according to a press release Tuesday from the company, referring to a study by market tracker ComScore. According to the ComScore study, shoppers that pick PayPal converted 87.5% of the time. The runner-up to PayPal was Visa ( V ), which had a conversion rate of 51.1%. ComScore lumped other competitors such as Amazon.com ( AMZN ) and MasterCard ( MA ) into a single group that converted at 45.6%. In the study , conversion rate measures the percentage of shoppers at the checkout page that select a payment method and complete the purchase. The data are based on a behaviorally-tracked panel and measures panelist purchases on 15 retail domains in the U.S. The perceived friction of inputting all the necessary information — name, address, credit card number, for example — at checkout has been seen as a big issue for digital payments services, but the study results suggest PayPal has gone a long way toward solving this issue. IBD Take: PayPal is a Leaderboard stock and ranks high in almost all major metrics. PayPal rolled out its One Touch technology about a year ago. “The results are really showing the success with the One Touch product,” PayPal global head of product communications, Anuj Nayar, told IBD Tuesday. In its press release, PayPal touted the 21 million consumers who have opted-in to use One Touch . Visa did not immediately return an emailed request for comment. PayPal stock was down more than 1%, near 39, in midday trading on the stock market today . The stock is finding support at its 50-day moving average. Volume has been lackluster as shares bounce back, but not much different from when shares were falling. The stock is mildly below a buy point at 40.03 but also in buy range from a lower 38.62 entry. The San Jose-based company has an IBD Composite Rating of 94, where 99 is the highest. Photo above provided by Shutterstock . PayPal provided the below infographic with its release. PayPal Infographic

PayPal Credit Expanding Across The Pond

In a bid to capture even more of the world’s digital wallet, the company has announced the first overseas expansion of its PayPal ( PYPL ) Credit business — essentially lending money to consumers at checkout. The move, announced Wednesday, will add pressure in the United Kingdom (where the feature was rolled out) to other payments options — such as Amazon.com ( AMZN ) and its offering. PayPal Credit will offer 0% interest during the first four months for purchase amounts of 150 British pounds and higher, afterward subject to the standard variable interest rate, which is 17.9% at publication time. Limits will depend on each person’s credit, which will take about 10 minutes. PayPal also faces competitive pressures from relatively new entrants into the digital wallet sector, Google with its Android Pay, and Apple ( AAPL ) Pay. Google is a unit of Alphabet ( GOOGL ). PayPal stock fell a fraction to 38.64 on the stock market today . The stock is finding support at its 50-day moving average, a positive move just when the stock needed one. Volume, though, has been lackluster as shares bounce back. The stock is still below a potential buy point. The company has an IBD Composite Rating of 93, where 99 is the highest. The U.K. is PayPal’s second largest market outside of the U.S., according to Mashable , which notes that of nearly 180 million active customer accounts, 22 million are located in the United Kingdom. The program began in 2014 as a pilot with limited availability. The marketing messaging the company is using — “ the future of money ” — is consistent with its global advertising push after its spinoff from eBay ( EBAY ) in 2015. Thus far the campaign has included the firm’s first-ever Super Bowl ad.

PayPal, Visa Could Be In Talks About A Possible Partnership: Analyst

PayPal ( PYPL )and Visa ( V ) apparently are in talks about a possible partnership, but whether the companies can reach an agreement remains to be seen, investment bank SunTrust said Wednesday. At the moment, PayPal attempts to push its customers into using cheap funding sources such as direct access to bank accounts and funds stored in PayPal accounts. But, should the company strike a deal with Visa (or MasterCard ( MA )) and present credit cards as an equal option, the company would likely see a $300 million transaction-expense increase, SunTrust analyst Robert Peck wrote in a research note. To offset the increased expense, Peck says PayPal would have to either negotiate for some kind of expense offset, see a 7% lift in payment volume funded by credit cards, or see a 3% lift in volume from its cheapest funding sources. San Jose, Calif.-based PayPal, through a spokesperson, declined to comment. PayPal stock was up about 2%, below 39, in afternoon trading on the stock market today . PayPal found support at its 50-day moving average Wednesday, a positive move just when the stock needed one. The stock is still below a buy point at 40.03 but above a 38.62 entry. The company has an IBD Composite Rating of 91, where 99 is the highest, putting it among the top 9% of all stocks on key metrics such as earnings and sales growth. In his research note, Peck upped his price target on PayPal stock to 44 from 38, citing better market conditions. Peck maintained a buy rating on the stock. Peck says that there are “breadcrumbs” that indicate a solid Q1 for the company. PayPal is set to report results April 27 after the close . Last week, e-commerce leader Amazon.com ( AMZN ) announced new features for its languishing payments platform that take aim at PayPal, and rivals such as Square ( SQ ).