$PayPal(PYPL)$ bullishPayPal operates a two-sided payments platform that provides financial services to merchants and consumers. By participating in both sides of the transaction, the company gains an advantage over service providers that work solely with merchants. Specifically, PayPal has a better understanding of consumer spending habits, which translates into deeper insights and better fraud protection. In fact, PayPal says it has the highest authorization rates and lowest loss rates in the industry.
The investment thesis here is simple: PayPal is the most accepted digital wallet in North America and Europe, and the company holds an impressive 41% market share in online payment processing, nearly double the 21% market share held by second-place Stripe. That positions PayPal as a long-term winner from the secular shift toward online retail, a market expected to grow at 8% annually through 2030.
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