Better Buy: PayPal Holdings vs. Discover
As the war on cash makes digital payments an increasing part of commerce worldwide, both PayPal Holdings (NASDAQ: PYPL) and Discover Financial Services (NYSE: DFS) find their services in increasing demand. Each has processed billions more in payments in 2019 compared with 2018. And while I believe PayPal is the better buy today, either could be worth buying depending on individual investment goals.
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PayPal's primary business is to process payments online and collect a small fee for it. In the third quarter of 2019, the company reported outstanding growth in important metrics for this core business. Active accounts were up 16% year over year, to over 295 million. This double-digit increase led to both higher transactions and higher payment volumes. Transactions, a measure of each time money changes hands, were up 25%. Total payment volume, which measures the dollar amount transacted, rose 27%.
Source Fool.com
