Paypal – Apple partnership: An Update

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Paypal – An Update

A continuation of my paypal due diligence here.

On July 12th, PayPal announced that it has extended its partnership with Apple. PayPal will be integrated across Apple’s platforms in 11 new markets which include: the U.K., Canada, Mexico, Australia, Austria, France, Italy, Spain, Netherlands, Germany, and Israel. Customers can use PayPal as a payment option to pay for virtually anything that Apple offers (App store, Apple music, iBooks, and etc). It caused the share of PayPal to hit an all-time high. I’m not sure what Apple is doing exactly by granting PayPal this level of expansion with the fact that Apple is trying to grow its Apple Pay service as I have mention in the last update. Yes, this partnership is also great for Apple, but I feel that this is better for PayPal in the end. This deal opens up a new digital market for PayPal in Apple’s services segment, which is around 25 billion business globally. PayPal will get a piece of those new market transaction which should drive its revenue up more. I am still bullish on PayPal as a long term play. With this new partnership, I see great things in PayPal’s future.

DISCLAIMER: I currently have a long position in PYPL. I believe that PYPL has great growth potential.  Please do your own research before making any decisions. Don’t make decisions based solely on the information provided here.

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