PayPal and Block: A Look At The Two Big Fintech Players
April 26, 2022 (Investorideas.com Newswire) The financial sector has become an increasingly dynamic field in recent years, with more big tech companies pushing into the industry. As today's digitalization continues to progress, there's an immense growth in companies, platforms, and applications that make use of technology for financial services. In front of these developments, fintech, short for financial technology, has become an especially interesting investment theme for companies and individual investors alike. We'll look at PayPal and Square, two of the biggest fintech players on the market, and current trends.
PayPal
PayPal (NASDAQ: PYPL) has evolved from a payment button on the auction platform eBay in its early days into a full-fledged, diversified payment service. Arguably the biggest online payment service in the world, PayPal has more than 300 million active users and allows payments at nearly 30 million merchants around the globe. PayPal is now available as a payment option on platforms offering goods and services from all types of industries.
While e-commerce is one of the main markets, as shoppers pay for their orders online through their PayPal accounts, many other sectors also make use of the convenience of PayPal payments. For instance, it's possible to book flights and holidays using the online payment service without the need for a credit card. Also, many sports and entertainment platforms have introduced PayPal as one of their payment methods. This can be seen on many of the best-rated UK horse racing sites available online. These allow sports fans to place their bets on horse races as well as other sports events using real money. PayPal, among other digital payment options such as Apple Pay and Skrill, is frequently offered for quick deposit payments and withdrawals by platforms with the best expert reviews.
Besides online payments, PayPal has long expanded its product range, evolving into a diversified payment service. With companies such as money transfer service Xoom and the P2P payment platform Venmo under its belt and services such as "Pay in 3" on offer, which allows users to buy now and pay later, PayPal is one of today's biggest fintech companies. Users can even buy, sell and hold cryptocurrency using the payment platform.
Block, formerly Square
Block, Inc., formerly Square, Inc. (NYSE: SQ), is another major fintech player offering financial solutions to merchants and consumers. It started out as a financial service offering small businesses a way to accept credit card payments via their mobile phones. Since its beginnings in 2010, Square evolved into one of the largest fintech companies in the world with two main ecosystems geared toward merchants and consumers. The company has widely expanded its services offered to merchants and has introduced a variety of business management tools, and their small-business lending platform Square Capital as well as Square Online Store, helping merchants build their online presence.
On the consumer side, Square has gained huge success with the Cash App, a P2P payment app that allows users to easily send and receive money. Just like PayPal, Square also introduced the option to buy, sell and hold cryptocurrency on the app in 2021. With the recent rebranding to Block, the company acknowledges the company's growth and creates space for further expansion, as it continues to evolve into a large-scale financial ecosystem.
Current market trends
Both PayPal and Block show the increasing importance of fintech clearly. Digital financial technology is changing areas of e-commerce, personal finance, business lending, payments, and much more, with the biggest fintech companies continuously expanding into more fields. While PayPal and Block are two of the biggest fintech firms, more players are pushing into the market as more tech companies jump on the fintech bandwagon.
Apple, for instance, doesn't only offer its Apple Pay mobile payment app, but has recently jointly launched a consumer credit card with Goldman Sachs that works with the app. Amazon has also already expanded its role in financial technology and has introduced Amazon Payments, allowing shoppers to check out at third-party merchants using their Amazon accounts. With the newly announced "Amazon Buy with Prime", Amazon is further increasing its efforts in this area - and many other companies are following suit with their own fintech offerings.
Financial technology has seen massive growth as more companies make use of technology to offer diversified and innovative financial services. While PayPal and Block are two of the biggest players right now, the market is rapidly expanding with more competitors pushing into fintech. It's an exciting field that is set to change the future of e-commerce and payments.
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