![]() The corporation maintains almost 400 million active consumer accounts in addition to its 35 million active merchant account holders. ![]() One illustration of this phenomenon is the preponderance of PayPal in online shopping cart transactions. Therefore, the value that a customer receives from utilizing the payment service is directly proportional to the number of merchants that are utilizing the platform on the other side of the transaction, and inversely. Additionally, the payment infrastructure offered by PayPal serves not only merchants but also customers, and the company benefits from a two-sided network effect as a result. Because of its many advantages, PayPal's solution has emerged as the front-runner among e-commerce platforms. One of the most important factors that have contributed to PayPal's rapid expansion is the company's success in simplifying and improving the checkout experience for online retailers. Given the substantial losses, many are debating whether they should keep holding the shares. Investors are discouraged by the stock's drastic decline, which has brought it close to its 52-week low today. However, rapidly rising interest rates hurt the company's results in 2022. In addition, the company's expansion into new areas and partnerships ought to assist in driving the company's continued growth in the future. This trend has accelerated as a result of the COVID-19 pandemic, and PYPL is well-positioned to benefit from this shift in the market. The ever-increasing use of mobile and digital payment methods is one of the primary forces propelling PayPal's expansion. has also established partnerships with major businesses, which has assisted in expanding its reach and bolstering its brand. The core payments business of the company has shown significant expansion over the past few years, and the business's expansion into new areas, such as peer-to-peer payments and shopping platforms, has helped the company diversify its revenue streams. The company possesses a powerful brand and a customer base that is continuously expanding. ( NASDAQ: PYPL) is a leading technology platform company in the digital and mobile payments space. Chameleonseye/iStock Editorial via Getty Images Investment Thesis
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