Business Strategy and Outlook
| Brett Horn |PayPal’s development of a network of both merchants and consumers early in the evolution of e-commerce allowed the company to build and maintain an enviable competitive position. Historically, PayPal’s growth had been driven by the ongoing shift toward electronic payments and the rise of e-commerce, which the coronavirus pandemic further accelerated. However, the company is now seeing some headwinds in the near term as the positives from the pandemic reverse and the macroeconomic situation worsens. Management is attempting to combat the pressure on top-line growth with a greater focus on margin improvement, and we see this evolution as the right move.