PayPal Faces a Range of Outcomes
PayPal’s early development of a network of merchants and consumers enabled the company to build and maintain a strong competitive position in the online payments channel. Historically, PayPal’s growth had been driven by the ongoing shift toward electronic payments and the rise of e-commerce, which the coronavirus pandemic temporarily accelerated. However, the company has faced headwinds as the pandemic-related positives reversed and new competition emerged. Management has sought to counter pressure on top-line growth by increasing focus on cost control and product innovation, with the goal of shifting to more profitable growth.