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$ 110 Trilion TAM It is making a foray into CHINA
It’s Venmo app has over 60m users
Now accepting Bitcoin and 3 other cryptocurrencies 
It’s services are used by 320m consumers
and 26m merchants GLOBALLY 
Here is an EASY thread
$PYPL was founded by Peter Thiel, Max Levchin and Luke Nosek in 1998 
In 2000, it merged with Elon Musk’s http://X.com and went public in 2002 
Quickly after its IPO, it was bought by $EBAY as over 70% of merchants on the auction platform already used $PYPL 
In 2000, it merged with Elon Musk’s http://X.com and went public in 2002 Quickly after its IPO, it was bought by $EBAY
as over 70% of merchants on the auction platform already used $PYPL
Before we go any further 
Something we can agree on is that the online payment space is crowded
How to find a winner amongst these names
$PYPL $AAPL $SQ $ADYEY $STNE $PAGS $LSPD
Something we can agree on is that the online payment space is crowded
How to find a winner amongst these names $PYPL $AAPL $SQ $ADYEY $STNE $PAGS $LSPD
The online payments market is huge 
$SQ expects the “business” market to be worth $ 100B and the “consumers” market to be worth $ 60B 
According to Allied Market Research, the global mobile payment market will grow to $ 12T by 2027 Up from $ 1.5T in 2019
Markets And Markets expects the global payment gateway market to reach $ 87B in 2025 Up from $ 31B in 2016
Mordor Intelligence expects the global gateway market to grow to $ 43B in 2025 up from $ 17B in 2019 For a CAGR of 16%
Frost & Sullivan forecast the Chinese mobile payments market to grow to $ 97T by 2023 From $30T in 2017
Markets And Markets expects the digital payment market to double in size by 2025 to $ 154B from $ 79B in 2020
PayPal projects its own TAM to be at $110T This represents payment volume (in Q2 ’20, payment volume stood at $222B for $ 5.2 B in sales)
That’s what we want 
A large market evolving towards technology driven solutions 
Eating away incumbent’s market share
Banks, financing institutions and legacy POS systems
A large market evolving towards technology driven solutions Eating away incumbent’s market share
Banks, financing institutions and legacy POS systems
What is $PYPL doing and can it win?In easy terms
$PYPL enables anyone to send and receive money online 
It is mainly used by Consumers Businesses
$PYPL for consumers 320m active accounts (a 21% YoY increase) that use $PYPL to pay for items online, send money tho their friends, request money from friends
Also widely used on auction websites such as $EBAY
Of course, $PYPL is not just made of its “PayPal app”
Venmo has over 60m users and processed $37B in payment volume in Q2 ’20 versus $24B in Q2 '19
Venmo recently introduced its Visa credit card
It offers loyalty features, rewards and cash-back incentives
Venmo has over 60m users and processed $37B in payment volume in Q2 ’20 versus $24B in Q2 '19 Venmo recently introduced its Visa credit card It offers loyalty features, rewards and cash-back incentives
More than that, $PYPL announced it would start supporting cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Litecoin) https://www.theverge.com/2020/10/21/21527288/paypal-cryptocurrency-support-buy-sell-venmo-bitcoin
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system” - $PYPL CEO Dan Schulman
$PYPL for businesses 26m merchant accounts use $PYPL to receive payments from customers
Like $SQ and Stripe, its acts as an aggregator of paymentsIt then redistributes all collected money to the corresponding merchants’ account
$PYPL is thus a Payment Service Provider (PSP) For full breakdown of the difference between a PSP and merchant account providers such as $ADYEY, just look here https://getbenchmark.substack.com/p/adyen-and-the-virtual-economy-boom
For full breakdown of the difference between a PSP and merchant account providers such as $ADYEY, just look here https://getbenchmark.substack.com/p/adyen-and-the-virtual-economy-boom
$PYPL thus enables merchants to accept payments by using a technology and platform agnostic approach 
Through its different solutions (PayPal, Braintree, iZettle Pay In 4, PayPal for Marketplace) $PYPL covers almost all of the merchants and customers needs on a global scale
Through its different solutions (PayPal, Braintree, iZettle Pay In 4, PayPal for Marketplace) $PYPL covers almost all of the merchants and customers needs on a global scale
Merchants can use PayPal’s tools for their digital checkout online, on mobile, and in-store (at the point of sale) across all platforms and devices
This enables merchants to securely and simply receive payments from their customers
can use PayPal’s tools for their digital checkout online, on mobile, and in-store (at the point of sale) across all platforms and devices This enables merchants to securely and simply receive payments from their customers
With Braintree, merchants can accept payments with
Credit or debit cards
PayPal, PayPal Credit
Google Pay, Apple Pay, Samsung Pay
And many other payment solutions
Credit or debit cards PayPal, PayPal Credit Google Pay, Apple Pay, Samsung Pay And many other payment solutions
iZettle offers a card acceptance service that enables small businesses to accept credit and debit card payments It also provides a software solution to record, manage, and analyse sales
PayPal for Marketplaces, a global, end-to-end solution designed to satisfy the unique payment needs of platforms, marketplaces, and crowdfunding sites It provides payment solutions for accepting and disbursing funds between consumers and businesses
$PYPL also recently introduced its own “By Now Pay Later” tool, called “Pay In 4” $PYPL is now competing with Klarna, Afterpay and Affirm https://techcrunch.com/2020/08/31/paypal-joins-the-buy-now-pay-later-race-with-new-pay-in-4-installment-program/
$PYPL acquired GoPay in 2019 which is a holder of payment business licenses in China It enables $PYPL to partner with Chinese financial institutions
and technology platforms to provide a comprehensive set of payment solutions to merchants and consumers in China
Here is the full article https://techcrunch.com/2019/12/19/paypal-completes-gopay-acquisition-allowing-the-payments-platform-to-enter-china/
https://techcrunch.com/2019/12/19/paypal-completes-gopay-acquisition-allowing-the-payments-platform-to-enter-china/
Good! This means that $PYPL is not ONLY about Venmo and merchant payments 
It is also providing BNPL services, entering China, supporting marketplaces, providing access to 4 different cryptocurrencies
All while having an ecosystem of 320m consumers and 26m merchants
It is also providing BNPL services, entering China, supporting marketplaces, providing access to 4 different cryptocurrencies All while having an ecosystem of 320m consumers and 26m merchants
Financials check
Sales grew by 22% YoY in Q2 ’20 to $ 5.3B 
Gross margins stand at 49% Up from 45% in previous quarters
Income from operations stood at $951m up from $ 705m a year earlier $ 2.4B of Operating Cash Flows up from $ 1.2B a year earlier
THE BOTTOM LINE $PYPL is a player too big to be ignored in the #fintech space - Generating $ 5.2B in sales and growing 22% YoY Venmo recently introduced its credit card and is adding new features (loyalty, rewards, cash back) to increase customer and merchant usage
Looking past Venmo and $PYPL POS, we can see a compelling story made of opportunities in China, expansion into Buy Now Pay Later and a recent entry into cryptocurrencies
$PYPL has a large established (and growing) user base and its foray into new markets only make it help more competitive in the world of #fintech 2.0 Market is competitive as $AAPL $SQ and many others (including Chinese, LATAM, European players) are fighting for it
We have started a position into $PYPL and will review it with their earnings 
$ATHM is on our watchlist To Be Reviewed SOON 
Please note that this is not a recommendation to buy - You are responsible for conducting your own research
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ TechCrunch
✑ Forbes
✑ Fortune
✑ Similarweb
✑ Pocket Lint
Sources
✑ Investor presentation
✑ Company website
✑ TechCrunch
✑ Forbes
✑ Fortune
✑ Similarweb
✑ Pocket Lint
✑ Merchant Maverick
✑ Mordor Intelligence
✑ Allied Market Research
✑ Markets And Markets
✑ Frost & Sullivan
✑ Mordor Intelligence
✑ Allied Market Research
✑ Markets And Markets
✑ Frost & Sullivan
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