PayPal, however, finds itself surrounded by some big companies with payments technologies including Apple (AAPL), Square (SQ) and Alphabet’s (GOOG) Google. But companies in the payments sector often do business with one another. Many of the merchants signed up with Apple Pay have their payments processed by PayPal unit Braintree, for example.
In many ways, Braintree’s peer-to-peer payments app Venmo is in a position similar to PayPal in its early days. Instead of focusing only on its first market, person-to-person payments, Venmo—like PayPal, which started out as a free service before it built enough heft to charge merchants—is turning to merchant transactions to turn a profit.
Uber and Airbnb were Braintree’s top clients when it was part of eBay, but the separation has led to at least one marquee client: the fastgrowing e-tail startup Jet.com. In addition, PayPal is expanding its pilot merchant program with China e-commerce leader Alibaba (BABA).
PYPL is a Cabot Growth Investor stock.