What moat does PayPal Holdings have?

The advantage is the buyer who already trusts the button and the merchant who already has it installed. The merchant can take payment with someone else. The moat narrows if the fee falls, or if payment happens inside the phone's own wallet.

How do you read the PayPal Holdings radar?

Health is the debt and the cushion against fraud, not a deposit bank's. Quality is the margin per transaction after fraud. Growth follows volume and the fee, which do not have to rise together. P/E is read against a year of heavy commerce, not against that year as normal. Shareholder return is the dividend and the buyback, checked against cash. Do not call it a network of hundreds of millions.

Which multiples matter for PayPal Holdings?

The P/E of a year of heavy online payment is not normal earnings. EV/EBITDA is read without treating processed volume as revenue. Do not use Visa's multiple, which is the card network, or Adyen's as if the branded button and the gateway were the same business. A dash if PYPL is missing.

What does this PayPal Holdings analysis leave out?

Not advice on PayPal. Vaultflake does not count accounts and does not treat the button as the most used. This is not a volume in the trillions. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

PayPal Holdings (PYPL) analysis

PayPal Holdings, Inc.

Sector:Financials · Digital Payments

Country:United States

Profile and moat

PayPal charges for online payment. The PayPal button is a brand. Venmo is the account between people, mostly in the United States. Braintree is the gateway without that brand, for the merchant who does not want the button. Apple Pay, the card on file, Adyen and Stripe do parts of the same trade. It is not the most widespread button by decree.

The fee per transaction can fall. Volume follows commerce. This report does not count active accounts or the money that passes through the network. An open account is not a user who pays. A year of heavy ecommerce is not normal earnings.

The result is that fee minus fraud and the cost of the network. Cash has to be left. It is not a fixed toll.

Sustainable Competitive Advantage

PayPal Holdings (PYPL) analysis

PayPal Holdings, Inc.

Sector:Financials · Digital Payments

Country:United States

Profile and moat

The result is that fee minus fraud and the cost of the network. Cash has to be left. It is not a fixed toll.

Sustainable Competitive Advantage

PayPal Holdings (PYPL) analysis

Profile and moat

PayPal Holdings (PYPL) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does PayPal Holdings have?

How do you read the PayPal Holdings radar?

Which multiples matter for PayPal Holdings?

What does this PayPal Holdings analysis leave out?

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