Is PayPal Holdings' Stock a Buy?
The trend away from cash and toward digital forms of payment is a global phenomenon. As a leader in digital money transfers and payment processing, PayPal Holdings (NASDAQ: PYPL) is uniquely positioned to profit from this megatrend. But is its stock a good investment from this point forward?
PayPal helps to make online shopping faster and more secure. It speeds up the online checkout process by eliminating the need for people to enter their credit card information, which also helps to lessen the possibility of identity theft. Merchants love it, because it helps to increase sales conversion rates. This is particularly true on mobile devices: PayPal's One Touch feature allows account holders to register a device and then quickly and easily make purchases on that device at millions of merchant sites. This makes shopping on smartphones much more convenient as purchases can be made with the click of a button. In turn, PayPal has become a powerful force in mobile payments. The company facilitated more than $73 billion in mobile payment volume in the second quarter alone -- a 37% year-over-year increase.
PayPal's mobile payments business is booming. Image source: Getty Images.
Source Fool.com
