Send me real-time posts from this site at my email

PayPal's New Venmo Option Boosts Instant Transfer Initiatives

PayPal Holdings, Inc. PYPL is making every effort to bolster presence in the online payment space with its growing instant money transfer initiatives.

This is evident from the company’s latest move to introduce instant transfers to U.S. bank accounts via Venmo. This will enable Venmo users to transfer their money to bank accounts within minutes.

Notably, the new instant transfer support comes with minimum fee of 25 cents and maximum of $10 per transfer.

We believe the latest move of PayPal will deliver enhanced experience to users, which in turn is likely to bolster the adoption rate of Venmo. Consequently, this will drive the company’s top line.

Instant Transfer & Banking Space

Increasing Internet and smartphone user penetration due to the fast-paced nature of the world is resulting in instant transfer services gaining traction.

The latest option strengthens PayPal’s instant transfer offerings, which already includes instant transfers to Visa and Mastercard debit cards. Hence, expanding instant transfer options remain a major catalyst.

Moreover, the move is in sync with the company’s persistent focus toward expanding presence in the banking sector, which is highly dependent on advanced technologies such as IoT and data analytics.

Latest instant bank transfer is an addition to the company’s standard bank transfer option on Venmo, which usually takes one to three business days to process transactions.

PayPal Ups Game in Banking

With the latest Venmo instant bank transfer initiative, PayPal has taken the fight to companies such as Early Warning Services’ Zelle and Square’s SQ Cash App, which are also trying to do the same.

Further, this likely to provide PayPal a competitive edge against other tech companies like Amazon AMZN, Alphabet’s GOOGL Google and Facebook, which are also leaving no stone unturned to capitalize on the increasing dependence of the banking space on the tech companies and growing proliferation of fintech applications among banking customers.

Notably, Google, Amazon and Facebook are leveraging the power of AI, machine learning (ML), augmented reality (AR)/virtual reality (VR), data analytics and cloud technologies to make advances in this particular sector.

Meanwhile, Square apart from its robust Cash App, has re-applied for special industrial loan company license (ILC) with Federal Deposit Insurance Corp (FDIC). Following the approval, the company will receive a bank license that will aid it in penetrating the potential banking sector.

Nevertheless, PayPal’s growing banking initiatives and expanding Venmo user base will continue to strengthen its position against these potential contenders in the market.

Currently, PayPal carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report, Inc. (AMZN): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
To read this article on click here.

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue