PayPal Holdings Inc (PYPL) is a leading fintech company engaged in offering digital payment services to individuals and businesses around the world. It connects buyers and sellers in more than 200 countries and territories.
Digital payments and e-commerce saw a boom post Covid-19 pandemic. As a result, PayPal stock gained significant value amid a strong presence in both spaces. During the pandemic, millions of users joined its platform, helping the stock climb more than 110 percent in 2020.
However, the growth of PayPal stock has decelerated this year as life returned to normal in most parts of the world following mass vaccination. PayPal shares have advanced just 15 percent so far in 2021.
PayPal recently announced that it will no longer receive late fees from users when they fail to pay installments on buy now pay later (BNPL) products. The late fees waiver will benefit customers in the U.S., U.K., and France.
The latest move is a part of the company’s efforts to make BNPL more affordable for customers. BNPL lets customers buy products on installments. Many people started using the facility during the pandemic. However, the BNPL space is getting crowded, with more companies launching similar services. Meanwhile, regulators are closely watching the BNPL sector to make sure customers do not fall under heavy debt.
PayPal has launched a range of new products and services lately, such as PayPal Zettle, BNPL, and support for cryptocurrencies. Such services will help PayPal stock gain more value in the future. Moreover, the wide adoption of digital payment services and the online shopping boom will also benefit the company in the longer run.