Why PayPal Stock Dived by Over 4% on Wednesday

The stock market was in full retreat mode on Wednesday, but it really pulled back on the stock of high-profile fintech PayPal Holdings (NASDAQ: PYPL). The company's share price declined by over 4%, a far steeper fall than the S&P 500 index's 1% drop, on news that a big consortium of rivals might be muscling into the consumer payments space.

Wednesday morning, citing "people familiar with the matter," The Wall Street Journal reported that Zelle could be making such a move. According to the article, the companies behind the popular instant money-transfer system were considering how to provide it as a payment option at retail store checkout counters.

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Source Fool.com