The E-Payments Tech
Today, we will be looking at one of the most dominant companies in one of the highest growth markets: E-Payments!
PayPal, founded as a new concept and ideal way for secure and fast payments, has been on a warpath making sure that they remain dominant in their field.
How have they done this you ask? Very simply – BUY THE COMPETITION
PayPal has for the past 10 years continuously bought out smaller companies and startups that might be competition in the future.
| Acquisition date | Company | Price | Refs |
|---|---|---|---|
| Jan 28, 2008 | Fraud Sciences | $169M | [53] |
| Oct 6, 2008 | Bill Me Later | $945M | [54] |
| Apr 20, 2011 | Where.com | $135 M | [55] |
| Apr 28, 2011 | FigCard | – | [56] |
| Oct 15, 2011 | Zong | $240M | [57] |
| Jul 17, 2012 | card.io | – | [53] |
| Apr 13, 2013 | IronPearl | – | [53] |
| Sep 26, 2013 | Braintree | $800M | [53] |
| Sep 26, 2013 | Venmo | – | |
| Dec 17, 2013 | StackMob | – | [53] |
| Mar 2, 2015 | Paydiant | $280M | [53] |
| Mar 5, 2015 | CyActive | $60M | [53] |
| Jul 2, 2015 | Xoom Corporation | $890M | [53] |
| Aug 19, 2015 | Modest Inc | – | [53] |
| Feb 14, 2017 | TIO Networks | $233M | [53] |
| Aug 10, 2017 | Swift Financial | – | [58] |
| May 17, 2018 | iZettle | $2.2 B | [52] |
| June 19, 2018 | Hyperwallet | $400M | [59] |
| June 22, 2018 | Simility | $120M | [60] |
*source: https://en.wikipedia.org/wiki/PayPal
This has allowed PayPal to enjoy a total of around $315.3 million in payments per day.
Building a competition moat around themselves, PayPal has effectively become a two-sided money machine, charging both consumers and businesses on each transaction made.
The global e-payments market globally has been continuously increasing year-over-year as more and more people shop online and make international transfers via PayPal systems.
With the whole Crypto craze, and rampant inflation making paper money less and less accessible – The future of transfers rest on the shoulders of the company to come out on top of the market.
Right now, that is PayPal.
“PayPal is accepted at 79% of the top 500 U.S. internet retailers. Its next biggest competitor, Amazon Pay, is only at 12% of retailers.”
*source: https://www.thestreet.com/investing/paypal-s-unwavering-online-domination-trounces-competition-morgan-stanley-14549506
“PayPal has a dominant payment ecosystem within the digital space.”
*source: https://seekingalpha.com/article/4202146-paypals-virtuous-circle
Current projection on the share price carries a 30.4% upside – Target at $120 – up to $28 from the current rate of $92.
Below is a chart highlighting the recent movement in the stock:
This would be a great addition to a stable portfolio looking to maximize the potential form of this incredible market.
Comment below and share your opinion.
