PayPal’s online checkout empire is under siege as rivals squeeze its core business
Branded checkout grew just 2% in PayPal’s first quarter as Apple Pay and other rivals took share, and shares fell nearly 8%, investors said.
- PayPal's branded checkout grew just 2% in first-quarter earnings, alarming investors and triggering a nearly 8% stock drop as CEO Enrique Lores replaced Alex Chriss in February with plans to restructure the company into three divisions.
- Apple overtook PayPal as the dominant checkout option six years after launching Apple Pay in 2014, with fingerprint and facial recognition payments proving more convenient than PayPal's checkout button to customers.
- PayPal's stock has plunged roughly 80% over five years and fallen nearly 40% in the past 12 months, while the company lags Affirm—founded by PayPal co-founder Max Levchin—in buy-now-pay-later services.
- Lores told shareholders at May's meeting he expects to update them on restructuring plans within months, as Wall Street analysts speculate whether Venmo or Braintree may be spun off given his prior experience splitting HP.
- From inventing online checkout nearly three decades ago, PayPal now faces its greatest existential challenge as Apple, buy-now-pay-later firms Affirm and Klarna, and peer services Cash App and Zelle fragment the market.
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28 Articles
Roundup: Term limits / PayPal / A new home for the state fair?
Headed to the ballot: A proposed constitutional amendment that would prohibit governors from returning to office after two elected terms even if the terms are nonconsecutive cleared the Louisiana Senate on Tuesday on a 28-10 vote. The House had already approved the measure. The amendment will now go before voters in November. In a post on X, former Gov. John Bel Edwards responded to the Senate’s approval of the bill with a bit of playful snark. …
PayPal Faces Uphill Battle in Competitive Fintech Arena
PayPal struggles to maintain its dominance in the online payments space amidst growing competition from Apple, Shopify, and newer financial technologies. The company is undergoing significant leadership and strategic changes to address sluggish growth in its core business and declining market share.
PayPal helped invent online payment. Almost three decades later, it is hard for him to defend his land. The iconic online payment company faces its biggest challenge in almost three decades of existence. Its main business – that customers use the app to pay at the end of online purchases – is just growing, and the new management has immediately warned investors that "significant changes" will be needed to solve the company's problems.
The digital payments company PayPal, considered one of the pioneers of e-commerce, faces one of the most complex moments in its history in the face of the advance of rivals such as Apple, Shopify, Klarna and Affirm.
PayPal’s online checkout empire under siege
PayPal, a pioneer in online payments, is facing significant challenges nearly three decades after its inception. The company is struggling to maintain its dominance amid fierce competition from Apple, Shopify, and buy now, pay later services like Affirm and Klarna.…
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