Fintech stocks like Block and PayPal face tough competition from Apple Pay

From NASDAQ.: 2024-06-24 19:05:28

The global digital payments market is projected to reach $16.62 trillion by 2028, driven by firms like Visa, Mastercard, Apple, Block, and PayPal. Apple’s new features like Tap to Cash and expanded Apple Pay functionality present competitive challenges for payment giants like Block and PayPal. Can they adapt and thrive in this evolving landscape?

Block, also known as Square, saw impressive Q1 results with revenues of $5.96 billion and adjusted EPS of $0.85, beating expectations on both fronts. Cash App and Square services showed significant growth, particularly among Millennials and Gen Z. Analysts are bullish on Block, with a consensus “Strong Buy” rating and a mean target price of $88.64, indicating upside potential.

PayPal’s Q1 revenues reached $7.7 billion, with a non-GAAP EPS of $1.08, surpassing expectations. The company is focused on new initiatives like Fastlane checkout, stablecoin on the Solana blockchain, and expanding Venmo’s capabilities. Analysts have a consensus “Moderate Buy” rating for PayPal, with a mean target price of $74.61, suggesting a potential upside of 25.4%.



Read more at NASDAQ.: 2 Fintech Stocks Set to Face Stiff Apple Pay Competition