Category: Fintech

PYPL – PayPal Holdings, Inc.

Credit Suisse starts Square, PayPal coverage as bull

Square (NYSE:SQ) rises 1.7% after Credit Suisse initiates coverage with an Outperform rating. Sets price target of $84; implies 21% upside potential vs. $69.29 close on Thursday.

Credit Suisse also picks up coverage of PayPal (PYPL -0.6%) with an Outperform rating and $135 price target; implies 15% upside vs. Thursday close of $117.89. Morgan Stanley analyst James Faucette lifts his price target on PayPal to $137 from $129, implying a 16% upside potential

PYPL - PayPal Holdings, Inc.

Quant rating for PayPal is Neutral; Sell-Side average rating is Bullish (23 Very Bullish, 11 Bullish, 6 Neutral, 1 Bearish). For Square, Quant rating is also Neutral; Sell-Side average rating is Bullish (13 Very Bullish, 5 Bullish, 16 Neutral, 3 Bearish, 3 Very Bearish).

V – Visa Inc.

Visa to buy Plaid for $5.3B

The acquisition will enable Visa to work more closely with fintechs through all stages of their development and drive growth in Visa’s core business, Visa said.

Visa Inc. (Visa) is a payments technology company that connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments. The Company operates through payment services segment. The Company enables global commerce through the transfer of value and information among the participants.

1. Visa — 323M Cardholders

Visa logo

Visa is a monolith in the credit card world, widely accepted by over 8 million merchants. From traditional benefits to premium rewards, Visa personal credit cards offer a wide range of benefits for cardholders around the world. Mobile cardholders can save themselves time and shop online using Visa Checkout.

2. MasterCard — 191M Cardholders

MasterCard logo

The second most major credit card network in the United States, MasterCard offers perks like easy bill pay and personal information protection using chip technology. MasterCard processes transactions in over 210 countries and in more than 150 currencies.

Fintech – Financial Technology

Fintech refers to the integration of technology into offerings by financial services companies in order to improve their use and delivery to consumers. It primarily works by unbundling offerings by such firms and creating new markets for them.

Fintech startups received $17.4 billion in funding in 2016 and were on pace to surpass that sum as of late 2017, according to CB Insights, which counted 26 fintech unicorns globally valued at $83.8 billion. The same firm reported that there were 39 VC-backed fintech unicorns worth $147.37 billion by the end of 2018.

Square, Inc. ~ (SQ)

“Bulls argue that the growth runway is huge for Square. While payment processing is the firm’s bread and butter right now, that won’t always be the case. SQ has gone from being simply a payment processor for small businesses to becoming a one-stop shop for merchants. Square has been tacking on extra offerings for years now, from inventory management and shipping to payroll and lending. Those extra services differentiate SQ from its peers, and make switching costs for merchants much higher because they already rely on Square’s ecosystem in order to run their businesses efficiently. “

By Laura Hoy, InvestorPlace ContributorMay 29, 2019, 2:49 pm EDT