COMPANY OVERVIEW

PayPal has been at the forefront of the switch to electronic payments for more than two decades.

(Just a Moment. . ., n.d.) Through more than 430 million active accounts in more than 200

markets, the PayPal platform is enabling millions of people and businesses around the world to

participate in and thrive in the global economy by leveraging technology to make financial

services and commerce more convenient, accessible, and secure.

The following services are provided by PayPal to both consumers and businesses:

• Payment gateway for businesses, online marketplaces, and auction sites

• Internet merchants are permitted to utilize their payment processors.

• It may be used by individuals as a payment bank.

• Effective transactions across a wider range

Top Competition for PayPal

 Google Wallet- This was created by Google to let users send and receive money without

paying any fees using either their mobile devices or home PCs.

 We Pay- It was established in 2008 in Boston, Massachusetts, and now has its main

office in California. It is an online service provider.

 Checkout- It is an international payment platform that processes different payment

methods across different currencies.

 Authorize.net- It is a payment gateway service provider founded in 1996

  Skill- it is an e-commerce service that allows sending international money transfers and

payments rapidly with small fees.

With 286 million active user accounts and 9.9 billion payments made in 2018, PayPal (PYPL -

Get Free Report) is a true e-commerce powerhouse with a promising future and a devoted

customer base that should grow as more young people utilize the digital-payment platform.

The business is very successful, bringing in more than $15 billion in sales in 2018, and its

platform is genuinely worldwide, supporting 100 different currencies across more than 200

international marketplaces.

In the end, PayPal flourished over its first two decades of operation. As of August, the company's

stock price was $108 a share, more than doubling from $53 five years earlier and from $85 a

year earlier.

PYPL has a one-year target estimate of $127 per share, even though it failed consensus analyst

sales projections and PayPal itself decreased its profits guidance in August trading, which caused

the price of the stock to fall by 12%.

According to investors and analysts, PayPal is a significant global digital payments market

player. Despite fierce competition from companies like Fintech and major international banks

vying for the same clients, the company appears to be well-positioned for future financial

growth, with an increasing share price appearing inevitable.

In terms of preventing identity theft, PayPal has maintained its reputation thanks to a clever set

of security improvements. The business designed a portable "key" gadget that needs to be
manually activated before a transfer from a PayPal account is executed. It also improved anti-

phishing and anti-hacking safeguards. In cases when they feel they have been duped or deceived,

PayPal lets customers challenge the transaction and ask for a refund. PayPal also has a

mechanism that deactivates accounts when suspicious or excessive behavior is noticed, providing

a form of limited safety for merchants.

It's no coincidence that user growth and engagement on PayPal are increasing quickly. When the

firm once again became autonomous in 2015, it concentrated on considerably enhancing its

product. By enhancing client choice, collaborating with banks, and promoting customer loyalty,

it has achieved this.

(Levy, 2018)

(Britannia, 2023)
 COMPANY SITUATION

PESTEL ANALYSIS

POLITICAL ANALYSIS

Below mentioned are a few of the prime illustrations of the recently published political news that

has affected PayPal Holdings –

1- The United States and European Union implemented sanctions on specific transactions

and entities on specific transactions and entities in 2021. Sanction on Russia, The

restrictions forced PayPal to stop operations in Russia, which had an impact on the

country’s economy and user balance

2- Digital Tax Proposals – Not many countries have a digital tax. Tech firms like PayPal

rate significant income from digital transactions that would be improved by a digit

digital.

3- Cryptocurrency regulations: Pay in from last few years has started a new service that is

offering services for buying and selling

Cryptocurrencies – The legal framework governing cryptocurrencies is changing as many

jurisdictions and nations impose different rules. To achieve, compliance and to keep bitcoin

PayPal will need to follow these crucial rules.

ECONOMICAL ANALYSIS

PayPal’s outgoing CEO Dan Schulman Buys u stock. Shares of the financial Service giant

PayPal have lost all of the pandemic-era gains. Dam Schulman, the outgoing CEO, has 2 million

dollars in stock. Owing to the pandemic era, when homebound customers used PayPal’s services

to man aka online Burmese, the purchases PayPal Holdings has erased all of its gins. “Dan

Schulman” the departing president and the chief executive officer of the financial service firm

recently purchased shares worth $200,000 each. On Feb 17 Schulman paid 2 million dollars for

PayPal’s shares which had an overcutting overcasting. Schulman chose not to remark on the

stock he bought.

(Lin, 2023)

SOCIAL ANALYSIS

Recommends stockholders reject a Mini – tender offer by TRC Capital Corporation

An offer has been made to PayPal holdings INC snap-up snap up of Rs.2,000,000 common

shares by an unsolicited Mini-lender offer by TRC Capital Corporation.

PayPal Venture leads Mint oak with an a20 Million serving funding Round.

Participants included previous investors HDFC bank and Pravega and Ventures as well as British

international investment [previously CDC]. Expanding into international markets and hiring

more engineering and product talent are the two objectives of Mintoak.
PayPal Ventures did lead a $20 million funding round for Mintoak, an Indian SAAS platform

that specializes in merchant services. Other investors included British International Investment

Existing Ventures, HDFC Bank, and Pravega Ventures. (JOSE, 2023)

TECHNICAL ANALYSIS

Below mentioned are a few of the prime illustrations of the recently published technical news

that has affected PayPal Holdings

–PayPal's products and services have become even more applicable now and hence the need to

focal point on technology innovation across AI/ML, Data Science, Risk and Security, Customer

- To continue providing products and services that satisfy the needs of its expanding customer

and merchant base, the company is focused on investing in and developing top-tier technological

talent. As digital payment becomes a valuable service.

-The company has highlighted that the pandemic has increased the demand for digital payments

and highlighted the benefits of adopting a digital-first approach.

-The India technology center is the largest for PayPal outside the US and works on technologies

ranging from artificial intelligence, and machine learning to the blockchain

-PayPal India currently houses over 2,500 engineers in the country. Last year they were planning

to increase their headcount in India to 600 by hiring more experts in areas like artificial

intelligence and machine learning, among others.

(insights)
ENVIRONMENTAL ANALYSIS

Below mentioned are a few of the prime illustrations of the recently published environmental

news that has affected PayPal Holdings –

Weather conditions affect the operational cost, efficiency, and employee productivity. Weto

builds a net-zero, consumer behavior. Environmental changes are pressuring businesses's why

PayPal is also affected by weather conditions. PayPal is exploring the connections between

digital finance and climate resilience to identify solutions to build a net-zero, more equitable

global economy. A new climate Task Force, funded by PayPal and in collaboration with climate

and digital finance experts, launched digital Finance for Climate. PayPal’s approach to

environmental sustainability involves addressing its impact while taking action to build climate

resilience among vulnerable populations.

(Murphy, 2021)

LEGAL ANALYSIS

PayPal has faced legal challenges in various areas, including antitrust, data privacy, and

consumer protection. For example, in 2020, PayPal was sued by the Consumer Financial

Protection Bureau (CFPB) for allegedly illegally signing up customers for credit products

without their consent. PayPal settled the lawsuit for $10 million without admitting to any

wrongdoing.
PayPal has also been involved in legal disputes related to its acquisition of other companies, such

as Zoom Corporation and Venmo. In 2019, PayPal was sued by a shareholder who claimed that

the company's board of directors failed to properly evaluate the risks and benefits of the

acquisition of iZettle, a European mobile payments company. A judge dismissed the lawsuit in

2020.

As the business released poor sales and profit predictions for 2022, citing concerns including

rising inflation, influencing consumer spending, and shares of the payments giant.

With a dismal prognosis, PayPal's shares fell by about 25% to just under $133 per share, its

lowest level since May 2020 and a long cry from its record high of $360 per share last year.

PayPal’s stock price fell at its quickest rate ever, wiping away around $50 billion in market value

alone.

Also, PayPal released mixed fourth-quarter numbers, but what alarmed investors was the

company's bleak profit projection, with officials acknowledging that a variety of problems may

hurt the business in 2022. The payments firm reduced its projected profit for the current quarter

and forecasted sales growth for the entire year to between 15% and 17%, below the analysts'

predicted 18%.

PayPal, which has experienced slower user growth, listed several difficulties that may have an

impact on earnings this year, including how increasing inflation will influence consumer

spending and continued supply chain problems. Moreover, the company is losing revenue from

one of its major clients and previous owners, eBay, which is in the process of switching to its

independent payments network, more quickly than anticipated. (Klebnikov, 2022)

PayPal Held over Half a Billion in bitcoin, Ethereum Last Quarter. According to its year-end

filing to the Securities and Exchange Commission, payments network, PayPal possessed more

than $500 million worth of the two most valuable cryptocurrencies, bitcoin, and Ethereum, as of

December 31, 2021. (SEC).PayPal said that its users would be able to purchase and sell bitcoin

and other virtual currencies using their PayPal accounts in October 2020, marking the company's

entry into the cryptocurrency market. PayPal has $291 million in bitcoin BTC) and $250 million

in Ethereum, according to SEC filings (ETH). Moreover, another $63 million in assets were kept

in lite coin (LTC) and Bitcoin Cash (BCH), bringing the total amount of cryptocurrency held by

PayPal on behalf of its clients to $604 million. (Vardaan, 2023)

Overall, legal issues can have a significant impact on PayPal's operations and financial

performance. As a publicly traded company, PayPal must comply with various laws and

regulations and may face legal challenges from regulators, customers, and shareholders.

(Klebnikov, 2022) (Vardaan, 2023)

 SWOT ANALYSIS

STRENGTHS OF PAYPAL

1) VERY ACTIVE USERS

By the end of 2020, there would have been around 361 million active PayPal users worldwide,

according to a Statistic projection. 192 million individuals were the company's active users in

2016. Throughout the past few years, PayPal's growth has been exponential.

2) CONVENTIONAL ONLINE TRANSACTION MODE

PayPal has reportedly grown in popularity in the US over the past several years, according to a

Statistic assessment. PayPal accounts for 22% of all internet transactions in the US. The PayPal

mobile app is used by the largest percentage of users. In 2020, PayPal-facilitated online

transactions had a net worth of about 246.7 billion dollars. Since last year, it has climbed by

38%.

3) CONVENIENT

PayPal's design and interface are incredibly user-friendly and convenient. The structure makes it

simple for non-techies to understand how to complete an online transaction. Not the

programmers and developers, but the consumers found it to be quite simple. It would be

extremely tough for a good programmer to imitate it and create algorithms with the same

architecture.

4) TECHNICAL KNOWLEDGE & EXPERTISE

After purchasing PayPal in 2002 for $1.5 billion, eBay enhanced the platform's encryption

mechanism and increased its level of financial security. The PayPal platform now has an

An additional layer of protection thanks to the Two-Step Verification Process and other cutting-

edge technological innovations.

5) AN ABUNDANT SERVICE PORTFOLIO

PayPal has a wide range of clients and services. For instance, PayPal is used by commercial

sellers, merchants, businesses, and regular customers. Each of them has distinct needs. Online

invoicing, virtual terminals, the option to sell digital goods, PayPal here, Pay Flow Payment

Gateway, and Bill me later are some of PayPal's most important features.

6) CLIENT DATABASE

In 2020, there will be 361 million persons in PayPal's global customer database. In the online

financial transaction sector, the company has attracted the most users. PayPal had 192 million

users in 2016 just a few years ago. It has grown significantly in a little period.

7) MAJOR BRAND

A well-known international brand, PayPal offers online transaction and payment services in

more than 200 nations. The firm has a significant competitive advantage thanks to its presence in

the international market. The business has the most consumers because of this.

8) RISE OF PANDEMIC

Banks and financial institutions all macro-management had been put on lockdown and shut down

as a result of the COVID-19 outbreak. The setting as a whole encouraged the idea of online
commerce. As a result, the sales and profit for the year climbed by 19.15% and 23.9%,

respectively.

(business management and marketing)

WEAKNESSES OF PAYPAL

1) UNACCEPTABLE IN SOME COUNTRIES

As is well known, PayPal offers services for online financial transactions in more than 200

nations. Pakistan, Sri Lanka, and other emerging nations all have significant room for expansion.

Millions of potential new customers would arrive as soon as the company enters such areas.

2) WEBSITE ACCESS

Access to internet connectivity is necessary for the convenience of online money transfers as

well as other local and commercial activities. In affluent nations, quick internet connectivity

won't be a problem. In several nations, dependable internet connectivity continues to be a major

problem.

3) A PAYMENT DISPUTE

Numerous users have expressed dissatisfaction about PayPal's freezing of their accounts, forced

terminations, and money withholding. If these disputes and charges prove to be accurate, and the

corporation is acting improperly, It would deter a lot of potential clients.

4) A HIGH COST
Several financial skeptics have praised PayPal's per-transaction charge. The company levies

steep fees for chargebacks, overseas card transactions, and card authorization. The business

could lower its pricing range to draw in more clients.

5) SCAMMING ACTIVITIES

Many clients have been helped by the management implicit and user-friendliness of online fund

transfers. Yet in recent years, there has also been an upsurge in online fraud risk and

cybercrimes. If you conduct the online transaction without technical help, it could be dangerous.

(business management and marketing)

OPPORTUNITIES FOR PAYPAL

PayPal is a revolutionary concept in an industry that is still growing and has a lot of room to

innovate. There is no end to opportunities here.

1. INTERNATIONAL EXPANSION

Although already in 200 countries worldwide, they still have many areas that are untapped by

their business.

2. TECHNOLOGY

Being in a very dynamic technology field of work, PayPal has an enormous responsibility to

be prepared for all the technological revolutions to explore.

3. CRYPTOCURRENCY
 It is a very interesting place for society to explore and work towards. They might be the

pioneers in this field to enable digital crypto trade.

4. PayPal posted strong quarterly results as revenue continued to grow at a high pace as

revenue decreased.

5. The company has been hit by a possible recession, but its long-term trends are still intact.

6. In my view, the stock is undervalued, but it could fall further.

(pestel analysis, 2022)

THREATS FOR PAYPAL

PayPal, like all other businesses, is under threat. While learning to complete a SWOT analysis, it

is very important to identify all relevant threats. These are the things PayPal should look out for.

1. COMPETITION

While this company is well ahead in the game, they still have competition. Competitors of

any size can always become stronger over time. Google Wallet, We Pay, Apple Pay, Wise,

Payoneer, etc. are just some of the most famous examples. If not careful, one of them may

exceed PayPal. Even Google and Apple have the resources to easily overtake market share.

2. YOUNG INDUSTRY

The fledgling industry offers many opportunities for companies to grow and expand, but

this opportunity is not exclusive. With the right resources, anyone can participate and be

successful.
 The barriers to entry into this industry are not too high. This is because online banking

trends are still developing in many areas. Local and specialized competitors in various

regions can eliminate the need for PayPal services.

3. POLITICAL INDUSTRY

Due to political tensions between countries in the world, many parts of the world still do

not use PayPal. China and the United States have always had a sort of political fit.

Anyway, business between the two countries is very difficult. It may be only a matter of

time before another political issue arises and PayPal has to pull out of China.

4. CYBER ATTACKS

PayPal can only be successful if people feel safe using it and can provide sensitive

information that is essential to banking. To get rid of these cyber security problems once

and for all, we need to find a stable solution.

(pestel analysis, 2022)

 MAJOR IMPLICATIONS

The accessibility of the internet and technology has opened up many opportunities for a simpler

lifestyle, but it comes at a price. These security threats are very serious and, if not taken lightly,

can wreak havoc on large organizations. But that doesn't mean that as a consumer you can ignore

them. Threats, on the other hand, should be removed as soon as possible. Of course, we can't

eliminate them, but PayPal can develop strategies to mitigate the harmful effects of each threat.

All in all, it's fair to say that PayPal is a remarkable company with a very bright future in the

industry. We can't wait to see where they go next, but here's what we know for sure. I haven't

seen the end of PayPal

 Beware of unsolicited emails, especially emails containing payment requests or links to

invoices

 Always check invoice authenticity with actual orders.

 Contact PayPal or another provider that accepts proprietary payment methods such as

credit cards if necessary.

 Deploy an intelligent cloud email security solution like Tessian to use behavioral

intelligence to detect and prevent advanced email attacks.

Solutions for the weaknesses of the company are:-

 For personal usage, the PayPal wallet feature is not accessible in India or most

developing nations. But, as an individual, you can use PayPal to buy products or services

from merchants who accept them everywhere and through the PayPal mall.
 When there is no internet service, businesses utilizing the PayPal app can take swipe-

card payments by turning on Offline Mode. Up to 24 hours can pass while the app is

offline before automatically processing the payment information.

 If you anticipate using PayPal, experts advise that you let them know in advance, if a

large sum of money is received or if you're going to add more money, After you join up

for PayPal Website Payments Pro, your account entered greater numbers on the survey.

Moreover, always ensure that your bank account and your account are completely

consistent. Directly contact PayPal customer service by clicking here.

 The purchaser is entitled to a complete refund of their order if an eligible PayPal

transaction fails. 180 days are given to buyers to contest a purchase. For buyer Protection,

the buyer must:

• Pay using PayPal

• Send one PayPal payment (no installment payment arrangements)

• Maintain the integrity of their account. Disputes must be filed within 180 days

(Brook, 2022) (POROTIU, 2023)

(CBN, 2021)
References
Britannia, T. e. (2023, January 5). Britannica. PayPal American company.

Brook, C. (2022, JUNE 22). Tessian Threat Intel Advisory: PayPal Email Invoice Fraud Detected.

business management and marketing. (n.d.). swot analysis of paypal.

CBN. (2021, march 1). cascade business news. What to Do After PayPal Freezes Your Account.

insights, c. (n.d.). ceo insights. PayPal Intends to Onboard 1,000 Engineers for India Technology Centres.

JOSE, S. (2023, February 24). Newsroom. PayPal reccommends stockholders reject mini-tender offer by
TRC capital Corporation.

Klebnikov, S. (2022, May 16). Forbes. PayPal Stock Crash Wipes Out Over $50 Billion In Market Value
After Company Lowers Profit Outlook.

Levy, A. (2018, August 29). The Motley Fool. 3 Factors Driving Growth for PayPal.

Lin, E. (2023, February 25). Yahoo. Paypal's outgoing CEO Dan Schulman buys up stock.

Murphy, F. (2021, AUGUST 2). Essay pandas . PESTEL Analysis of PayPal Holdings.

pestel analysis. (2022). paypal swot analysis 2022 : a bright future in the banking industry.

POROTIU, T. (2023, FEBRUARY 10). vpn overview. 11 paypal scams in 2023 and how to avoid them .

Vardaan. (2023, February 15). IndianWeb2. PayPal Held Over Half A Billion in Bitcoin, Ethereum Last
Quarter.