Their revenue has gone up every single year for 13 straight years. (Sure, revenue growth % has slowed, but your size takes over and you can’t exactly grow massively forever.) the expectation for 2025 is about 3-5% more revenue growth. So presumably 14 straight years of revenue growth. Yet the price has stayed the same in 7 years. (Despite revenue more than doubling.) Current management has shown signs of improvement as well. Free cash flow is still strong. Margins have improved. And huge buybacks have been and will continue. PayPal still is the clear cut front runner in their sector. People overthink their perceived competition. And probably haven’t looked at the actual data. They cherry pick the most unfavorable stats. And even those don’t look that alarming. They’re still massively ahead of their main competitors. A company that consistently improves revenues every year, generates strong cash flows, huge buybacks, massive insider buying/accumulation, and still the obvious winner for their own niche globally? Yeah, I’ll be a buyer of PYPL most Definitely. Bought a load around $60 and plan to hold and DCA well into the future. Way too cheap to ignore IMO. It’s been a victim of sentiment more than fundamentals. (Doesn’t help people hyped it up way too much around 2020 and got burnt by overpriced euphoria.) Answer from PayMyDividend on reddit.com
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HP
hp.com › us-en › shop › tech-takes › pros-and-cons-of-paypal-small-business
Pros and Cons of PayPal for Small Business
December 9, 2020 - December 7, 2020 · Reading time: 8 minutes · There’s a reason 22 million merchants and 305 million consumers use PayPal: it’s convenient. But as the payments processing game heats up, options are growing, and PayPal is far from your only choice. Choose the wrong payments partner, and you’ll face the hassle of getting stuck extracting your business from messy accounts and tangled code.
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Vox
vox.com › money
Will payment apps like PayPal and Venmo make financial inequality worse? | Vox
April 7, 2021 - PayPal and other mobile payment apps have advantages for customers without bank accounts, but also drawbacks. Photo Illustration by Rafael Henrique/SOPA Images/LightRocket/Getty Images · Tatiana Walk-Morris is a Detroit-born, Chicago-based independent journalist who covers business and technology. Evelynn Jones used to have a bank account with Bank of America.
People also ask

Why use PayPal vs credit card?

Using PayPal vs credit card makes sense for trust and convenience, especially with digital goods. But combining both—and adding open banking—gives your customers choice while helping you cut fees.

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noda.live
noda.live › articles › paypal vs credit card for merchants: which payment method to choose
PayPal vs Credit Card for Merchants | Noda
Is it better to use PayPal or credit card?

If security and brand recognition matter more, go with PayPal. If you need a traditional payment method, cards may work better. But offering open banking can cust costs and give you a s smoother UX.

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noda.live
noda.live › articles › paypal vs credit card for merchants: which payment method to choose
PayPal vs Credit Card for Merchants | Noda
Is it better to pay with PayPal or credit card?

If you want smoother checkout and built-in fraud protection, PayPal can help. But pay with PayPal vs credit card depends on your audience—credit cards are more widely used.

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noda.live
noda.live › articles › paypal vs credit card for merchants: which payment method to choose
PayPal vs Credit Card for Merchants | Noda
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Payanywhere
payanywhere.com › home › blog › payment apps: the pros and cons of paypal, payanywhere, venmo, and more.
Payment apps: The pros and cons of PayPal, Payanywhere, Venmo, and more. | Payanywhere
September 26, 2024 - These platforms often fall short on the detailed financial reporting essential for accounting and compliance. Therefore, businesses should utilize dedicated merchant processors to handle their sales and financial tracking needs effectively. PayPal is a widely established online payment system that facilitates secure money transfers and online purchases globally for both individuals and businesses.
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Moneytransfer
moneytransfer.com.au › paypal
PayPal Review: Fees, Safety and Usage (Australia Focused)
October 1, 2025 - Seeing as PayPal allows customers to transfer money internationally, this review will consider PayPal’s strengths and weaknesses in this domain. It should also provide you with a clearer idea of when you can, or when you should use PayPal for your unique money transfers needs.
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Mollie
mollie.com › growth › paypal alternatives: top 15 secure payment options
PayPal Advantages, Disadvantages and Alternatives | Mollie
The disadvantages of PayPal can include account blocking, loss of money, the large number of phishing emails and a potential risk of data loss. The disadvantages of PayPal can include account blocking, loss of money, the large number of phishing ...
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Reddit
reddit.com › r/valueinvesting › what’s your take on paypal (pypl) and its future? why has it been trading sideways for so long?
r/ValueInvesting on Reddit: What’s your take on PayPal (PYPL) and its future? Why has it been trading sideways for so long?
June 9, 2025 -

Hi everyone,

I’ve been keeping an eye on PayPal ($PYPL) lately and noticed that the stock has been trading sideways for quite a while now. Although the company still holds a solid position in the digital payments space, market sentiment seems lukewarm at best. Compared to its highs a few years ago, the current price feels heavily discounted.

I have a few questions I’d love to hear your thoughts on:

  1. What do you think about PayPal’s growth prospects over the next few years? Does it still have potential to bounce back, or is it steadily losing ground to competitors like Apple Pay, Block (Square), Stripe, etc.?

  2. What do you think are the main reasons behind its prolonged sideways movement or decline? Is it due to concerns over slowing growth, intensifying competition, poor management decisions, or something else?

  3. From a valuation perspective, is PayPal undervalued at this point—or is the market pricing it fairly based on current expectations?

I know many of you here have strong insights into market trends and company fundamentals, so I’d really appreciate any thoughts you have. If you’re currently holding PYPL, feel free to share your position or strategy as well.

Thanks in advance

Top answer
1 of 37
49
It’s a “heads I win, tails I don’t lose much” type of bet. They’re using all free cash flow to buy back stock, if revenue starts growing it’s going to boom.
2 of 37
45
Their revenue has gone up every single year for 13 straight years. (Sure, revenue growth % has slowed, but your size takes over and you can’t exactly grow massively forever.) the expectation for 2025 is about 3-5% more revenue growth. So presumably 14 straight years of revenue growth. Yet the price has stayed the same in 7 years. (Despite revenue more than doubling.) Current management has shown signs of improvement as well. Free cash flow is still strong. Margins have improved. And huge buybacks have been and will continue. PayPal still is the clear cut front runner in their sector. People overthink their perceived competition. And probably haven’t looked at the actual data. They cherry pick the most unfavorable stats. And even those don’t look that alarming. They’re still massively ahead of their main competitors. A company that consistently improves revenues every year, generates strong cash flows, huge buybacks, massive insider buying/accumulation, and still the obvious winner for their own niche globally? Yeah, I’ll be a buyer of PYPL most Definitely. Bought a load around $60 and plan to hold and DCA well into the future. Way too cheap to ignore IMO. It’s been a victim of sentiment more than fundamentals. (Doesn’t help people hyped it up way too much around 2020 and got burnt by overpriced euphoria.)
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Project Managers
projectmanagers.net › home › top 10 cons & disadvantages of paypal
Top 10 Cons & Disadvantages of PayPal
4 weeks ago - Learn about PayPal's disadvantages like transaction fees, fund holds, and limited protection to make informed decisions.
Find elsewhere
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Omegatheme
omegatheme.com › home › blog › paypal posts › paypal payment & tracking number › paypal payments pro: a problem solving for big businesses
Paypal Payments Pro: a problem solving for big businesses - OmegaTheme.com
October 4, 2024 - In specific, between the Paypal business and Paypal Pro, their level of amount on hold and limit is different. Hold amount for personal or regular business accounts is almost fixed with the total rate staying at 40% and unchanged. This causes a huge disadvantage for long-term businesses when the revenue is bigger, the amount of money buried is bigger.
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Noda
noda.live › articles › paypal vs credit card for merchants: which payment method to choose
PayPal vs Credit Card for Merchants | Noda
Therefore, when you compare PayPal vs credit card for foreign transaction fees, PayPal turns out to be more expensive. Another downside of PayPal is that customers have to log in, or create an account, to complete a payment.
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Capterra
capterra.com › home › payment processing software › paypal › paypal all reviews › page 2
Page 2 | PayPal Reviews 2025. Verified Reviews, Pros & Cons | Capterra
November 8, 2025 - Processing payments has been pretty easy to perform since it is now automatic with the help of PayPal. I am able to pay and receive international payments through PP which is among things that I like. ... In 2020 a client charge backed a payment and I had already delivered, I catered for the loss but I was not supposed to - kudos they advanced sellers protection.
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Nptechforgood
nptechforgood.com › 2025 › 07 › 11 › why-paypal-giving-fund-may-hurt-your-nonprofits-fundraising-efforts
Why PayPal Giving Fund May Hurt Your Fundraising Efforts
July 11, 2025 - JavaScript is disabled in your browser · Please enable JavaScript to proceed · A required part of this site couldn’t load. This may be due to a browser extension, network issues, or browser settings. Please check your connection, disable any ad blockers, or try using a different browser
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HP
store.hp.com › ukstore › tech-takes › pros-and-cons-of-paypal-small-business
Pros And Cons of Paypal Small Business | HP® Tech Takes
June 1, 2023 - Discover the wider range of HP products. Find the perfect HP product to fit your needs. ... Contact our Technical Support or download Drivers and Software. Exploring today's technology for tomorrow's possibilities ... Copied link! ... There’s a reason 22 million merchants and 305 million consumers use PayPal: it’s convenient.
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EBizCharge
ebizcharge.com › home › paypal vs. merchant account
PayPal vs. Merchant Account | EBizCharge
Now that we recognize the enormity of the PayPal giant, let's compare the way they charge fees to the industry average of fees charged by other merchant processing companies. They can only process 26 currencies. Limited number of industry verticals ...
Published   March 25, 2024
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London Post
london-post.co.uk › home › blog › advantages and disadvantages of using paypal as a payment method
Advantages and disadvantages of using PayPal as a payment method - London Post
May 14, 2023 - PayPal may withhold payments on certain occasions and depending on the type of transaction that has been made. This is a security mechanism, but can sometimes be disruptive or annoying to some users.
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Wikipedia
en.wikipedia.org › wiki › PayPal
PayPal - Wikipedia
3 days ago - In October 2019, PayPal reported a loss of $228 million on investments, largely due to a failed return from a $500 million investment in Uber. On January 6, 2020, PayPal acquired Honey for over $4 billion. This is PayPal's largest acquisition to date. It more recently signed a deal with NBCUniversal.
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International Code Council
iccsafe.org › wp-content › uploads › den14.pdf pdf
What is the disadvantage of using PayPal?
What is the disadvantage of using PayPal? While PayPal is convenient, there are a few drawbacks to be aware of — call 1-(833)-(297)-(5675) for guidance on safe usage. Common disadvantages include transaction fees, account holds, and · potential delays in fund transfers.
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Synder
synder.com › blog › business › pros and cons of paypal: evaluating its fit for your business needs
The Pros and Cons of PayPal: Is It Right for Your Business?
July 14, 2025 - Once the money is in your PayPal account, you can transfer it to your bank account, which usually takes 1-3 business days. The main disadvantages of PayPal include high fees for international transactions and currency conversions.
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Chargeback
chargeback.io › blog › pros-cons-of-using-paypal-for-your-small-business
The Pros & Cons of Using PayPal for Your Small Business
July 4, 2024 - PayPal is a great option if you’re breaking into the market and want to build up trust with your customers. Since they’re widely recognized and support more than 25 currencies. However, this recognition results in high fees and a high chance of PayPal arbitrarily freezing access to your account.
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eMerchant Authority
shop.emerchantauthority.com › home › news › exclusive 2020 - review of paypal virtual terminal for your business
Exclusive 2020 - Review of PayPal Virtual Terminal for Your Business | eMerchant Authority
April 7, 2020 - Any e-commerce business owner would be familiar with Paypal. It is one of the most common electronic payment systems on the market today with over 305 million active accounts. Online businesses have relied on Paypal due to the security and convenience that Paypal offers, but there are others that have stayed clear of Paypal due to the lengthy processing time, the constant freezing of accounts, and the multiple fees.