Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

PayPal Expands In Payment Solutions Market With Hyperwallet

Published 06/19/2018, 09:48 PM
Updated 07/09/2023, 06:31 AM

PayPal Holdings, Inc. (NASDAQ:PYPL) has entered into a definitive agreement to take over Hyperwallet in a deal worth $400 million. The deal is in sync with the company’s intention of expanding its share in the online payment market.

Hyperwallet is a payout platform with operations worldwide. It provides integrated payment solutions to enterprises, marketplaces, e-commerce and on-demand platforms. Consequently, PayPal will be able to offer an end-to-end payment solution to marketplaces and e-commerce companies, making their payment process smoother and hassle free.

Per the terms of the deal, the merchants on the company’s platform will get several payment process options like prepaid card, bank account, debit card, cash pickup and PayPal checking account.

Further, they will have access to more than 200 markets. This will enhance their payment distribution capabilities.

In fact, the latest move of PayPal will expand and enhance its payment offerings on a global basis which is likely to attract more merchants to its platform. This will improve the merchant base of the company, in turn aiding top-line growth in the long haul.

Coming to the price performance, shares of PayPal have returned 60.4% over a year, outperforming the industry’s rally of 38%.



E-commerce Market Holds Promise

In today’s fast moving world, e-commerce has gained immense popularity. It will continue to gain traction in the long haul with the increased penetration of internet and mobile phones. The e-commerce market has resulted in the emergence of online payment services and apps.

With the robust payout platform of Hyperwallet, PayPal has made its foray into the global e-commerce market which holds great potential.

According to data from Statista, revenues in this sector are expected to hit $1.7 trillion in 2018 and $2.5 trillion in 2022 by growing at a CAGR of 9.6% between 2018 and 2022.

Per Technavio latest report, the global e-commerce payment market is expected to generate $135 billion by 2022.

We believe, PayPal is well poised to leverage e-commerce sector’s growth potential with strong payment solutions.

Expanding Portfolio & Strategic Acquisitions

Over the past few years, acquisitions have played a significant role in shaping the company’s growth trajectory by adding strength to its product portfolio.

The latest deal bodes well for the company’s strong efforts toward expansion of product portfolio.

Recently, the company completed the acquisition of Jetlore which leveraged its portfolio with AI capabilities. Further, the company’s buyout of iZettle, a developer of small, wireless chip readers aided its global expansion.

According to the latest report from Statista, the total transaction value in the digital payment market is anticipated to reach $3.3 trillion in 2018 and is likely to grow at a CAGR of 13.5% between 2018 and 2022. Further, it is expected to reach $5.4 trillion by 2022.

Consequently, PayPal’s strategic acquisitions along with its well performing payment platforms — Braintree, Venmo and Xoom will continue support it in gaining momentum in this rapidly growing market.

Zacks Rank & Stocks to Consider

Currently, PayPal carries a Zacks Rank #3 (Hold).

A few better-ranked stocks that can be considered in the broader technology sector are Twitter (NYSE:TWTR) , Upland Software (NASDAQ:UPLD) and Attunity (NASDAQ:ATTU) . All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Twitter, Upland Software and Attunity is currently pegged at 23.1%, 20% and 20%, respectively.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>



Attunity Ltd. (ATTU): Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

Upland Software, Inc. (UPLD): Free Stock Analysis Report

Twitter, Inc. (TWTR): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.