Can PayPal (PYPL) Turn Payments Innovation Into Long-Term Growth Momentum?

• PayPal reported strong second-quarter 2025 results in late July, posting higher sales of US$8.29 billion and net income of US$1.26 billion, alongside a boost in profit guidance and the rollout of innovative commerce products.
• An especially significant development saw PayPal advance its payments ecosystem with initiatives such as PayPal World and expanded crypto payment options, while also accelerating share buybacks to enhance shareholder value.
• With PayPal World now connecting global wallets and payment systems, we'll assess how these advancements impact PayPal's investment narrative and growth outlook.

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PayPal Holdings Investment Narrative Recap

To be a PayPal shareholder, you need to believe in its transition from a pure payments provider to a global commerce platform, using innovations like PayPal World and crypto payments to unlock broad digital commerce opportunities. The recent Q2 2025 earnings beat and raised guidance reinforce confidence in its transformation, but the main short-term catalyst remains wider adoption of the PayPal World platform. Continued competition and headwinds in key markets, particularly the UK, remain the most pressing risks; these updates do not materially change that landscape.

Among the recent announcements, the launch of Pay with Crypto stands out, as it directly supports PayPal's efforts to expand cross-border commerce and diversify payment options for merchants and consumers. By connecting more than 650 million crypto users with merchants globally, this feature underscores PayPal's push to increase transaction volumes and cement itself as an essential commerce platform. The success of such integrations could be a critical factor in advancing PayPal's short- and medium-term growth catalysts.

However, against these ambitions, investors should remain mindful of competitive pressures in established markets, as...

Read the full narrative on PayPal Holdings (it's free!)

PayPal Holdings' outlook anticipates $38.0 billion in revenue and $5.4 billion in earnings by 2028. This implies a 5.5% annual revenue growth rate and a $0.7 billion increase in earnings from the current level of $4.7 billion.

Uncover how PayPal Holdings' forecasts yield a $83.14 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Fifty individual fair value estimates from the Simply Wall St Community range from US$75.46 to US$189.96 per share, showing strong diversity in expectations. As you consider these views, remember that PayPal’s move toward a global commerce platform could have wide-reaching implications for growth and profitability.

Explore 50 other fair value estimates on PayPal Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own PayPal Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PayPal Holdings research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free PayPal Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PayPal Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.