PayPal – ExpandingPayment Ecosystem Solidifies Dominant Positioning in a Growing Industry

Associate: Max Rosmuller (HSG); Analysts: Vinay Sohal (Warwick), David Niu (NYU), Madhav Karwa (UMass Amherst), Tom Hassler (HSG)


Click the image to view the full report.


As the Covid-19 pandemic accelerates a rapid shift towards eCommerce, contactless and digital payment methods, the fight for market share in the digital payment industry is at an all-time-high. From tech giants like Apple and Google to rapidly growing startups like Square, everyone is looking for their share in the market.

In this report, we analyze PayPal, one of the earliest digital payment providers, and find out whether the company can continue to compete in the fast-growing digital payment industry.

We believe PayPal will defend its dominant position within the industry as the company expands from a digital payment platform to an integrated ecosystem with services such as Venmo, Honey, and its new venture into cryptocurrency trading. Additionally, through the use of a DCF and comparable company analysis, we believe PayPal’s share price can achieve a higher valuation in the medium-term.

Click here to read the full 24 page report and hear our take.