PayPal Remains a Unique Player in Payments

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. In recent years, PayPal’s growth had been turbocharged 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.