Visa outperforms PayPal in global payments, offering stronger fundamentals and growth potential

From Zacks Investment Research: 2025-04-10 12:52:00

Visa Inc. (V) and PayPal Holdings, Inc. (PYPL) are leading the way in digital payments, with Visa processing over $13 trillion in transactions in fiscal 2024. Visa’s international footprint spans over 200 countries, with 65% of transactions outside the U.S. It has a market cap of $572.7 billion and a strong balance sheet, making it a stable long-term investment. PayPal, with a market cap of $63.3 billion, has 434 million active accounts but lags behind Visa globally. Financially, PayPal’s metrics are solid but under pressure, with revenue growth decelerating post-pandemic. Visa is priced at 27.57X forward 12-month earnings, compared to PayPal’s 12.35X. Visa’s fiscal 2025 sales and EPS estimates show a year-over-year increase of 10.2% and 12.5%, respectively, while PayPal’s estimates imply a rise of 3.7% and 7.5%. Visa’s stock has outperformed PayPal and the S&P 500 Index in the past month. Visa offers stronger fundamentals, broader global integration, and more consistent financial performance compared to PayPal, making it a more reliable and diversified choice for investors in the digital payments space.



Read more at Zacks Investment Research: Visa vs. PayPal: Which Global Payments Leader Has More Upside? – April 10, 2025