EU and US could reach trade deal this weekend - Reuters
SAN JOSE - PayPal (NASDAQ:PYPL), a prominent player in the Financial Services industry with a market capitalization of $73.87 billion and annual revenue of $31.89 billion, announced on Wednesday the creation of PayPal World, a platform designed to connect major global payment systems and digital wallets, initially enabling interoperability with PayPal and Venmo. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value, suggesting potential upside opportunity.
The platform’s launch partners include Mercado Pago, NPCI International Payments Limited (UPI), Tenpay Global, and Venmo, collectively representing nearly two billion users worldwide. The service is expected to begin rolling out this fall. With a robust gross profit margin of 41.4% and strong cash flow generation, PayPal demonstrates the financial strength to support this ambitious global initiative.
PayPal World aims to simplify cross-border commerce by allowing consumers to use their domestic payment methods when shopping internationally. For businesses, the platform will provide access to a broader customer base without requiring additional technical integration.
"PayPal World is a first-of-its-kind payments ecosystem that will bring together many of the world’s largest payment systems and digital wallets on a single platform," said Alex Chriss, President and CEO of PayPal.
As part of the initiative, PayPal and Venmo will become fully interoperable for the first time, enabling users to send money between the platforms. Starting in 2026, Venmo users will also be able to shop at merchants globally that accept PayPal.
The technology-agnostic platform is built with open commerce APIs and a cloud-native architecture designed for global scalability. According to the company, PayPal World will eventually support emerging technologies including AI-assisted shopping and stablecoin payments.
Ritesh Shukla, Managing Director and CEO of NPCI International Payments Limited, stated that the integration "will mark a significant step in expanding UPI’s global footprint" and enhance convenience for Indian users making payments abroad.
The announcement was made through a press release statement from PayPal, which indicated that more digital wallets are expected to join the platform in the coming months as it expands globally. With analyst price targets ranging from $49 to $120 and the company’s next earnings report due on July 29, investors seeking detailed insights can access comprehensive analysis and additional ProTips through InvestingPro’s exclusive research reports, which offer in-depth coverage of PayPal and 1,400+ other top US stocks.
In other recent news, PayPal has announced its second-quarter earnings expectations in alignment with guidance and consensus estimates, as noted by Truist Securities, which reiterated its Sell rating with a $68 price target. Meanwhile, RBC Capital maintained its Outperform rating with a $88 price target, citing increased confidence in PayPal’s growth strategy after a presentation at the RBC Fintech Conference. In partnership news, PayPal has teamed up with Anthropic to integrate its payment services with Claude AI, enhancing transaction management through conversational commands. Additionally, PayPal has entered into multi-year agreements with the Big Ten and Big 12 Conferences to manage student-athlete payments under a new revenue-sharing model. In another development, Taco Bell has added PayPal and Venmo as payment options, offering customers 20% cash back on purchases over $5, up to $10 per transaction, through its app and website. These initiatives reflect PayPal’s ongoing efforts to expand its service offerings and partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.