PayPal wants to be everywhere

Hey!

PayPal reported its fourth quarter and full-year 2024 results this week. Braintree payment volume growth decelerated to 2% YoY (from 29% YoY a year ago). International payment volume growth decelerated to 7% YoY (from 17% YoY a year ago). The company guided for unimpressive 4-5% YoY gross profit and 6-10% non-GAAP EPS growth in 2025.

So what’s next? A payments company needs payment volume growth to grow earnings. The answer: PayPal has almost 230 million monthly active users…and they want to do more for them. PayPal wants to lend to consumers and small businesses. They want to issue debit cards. And I believe they will try to scale their in-store payment acceptance business.

PayPal will hold an Investor Day later this month. I expect Investor Day to clarify PayPal's core focus moving forward. While PayPal has plenty of growth opportunities, they cannot pursue them all. We have already seen a lack of focus before, and it didn’t end well.

Jevgenijs

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