[Overseas Stocks Spotlight] "PayPal, Continued Growth in New Subscribers in the Second Half"

[Asia Economy Reporter Eunmo Koo] Paypal (Paypal·PYPL.US) is expected to continue its high growth with a sustained increase in new subscribers in the second half of the year.

Paypal's number of new subscribers is expected to maintain high growth in the second half as well. Jaeyim Kim, a researcher at Hana Financial Investment, stated in a report on the 3rd, "Among Paypal's various performance indicators this year, the most encouraging is NNA (Net New Active accounts). While the NNA was around 8 to 9 million per quarter, it recorded 21 million in the second quarter, and Paypal expects 30 million in the second half of this year," adding, "It is important to note that the composition of net new subscribers has seen the largest increase among consumers aged 50 and above, rather than the existing online shopping population, and the payment sector has expanded into new industries such as health, entertainment, and education."

The synergy with various services such as 'Honey' is also evaluated as a basis for strong competitiveness. Even in regions where COVID-19 has stabilized and various lockdown measures such as movement restrictions have been lifted, digital payment usage remains more active than before. Researcher Kim said, "In particular, the adoption of digital payments by sellers is expected to accelerate further, and Paypal's competitiveness as a seller-oriented platform suggests continued momentum in the future," adding, "Paypal leads in the number of members, brand power, and network, and especially from the seller's perspective, Paypal is attractive as a platform because it provides various services such as 'Honey,' which finds discount coupons, not just a simple checkout service, making it a tool that generates sales."

The performance momentum is expected to remain strong in the second half, and the current correction is seen as an opportunity to increase exposure. In September, as U.S. tech stocks generally experienced a correction, Paypal also fell more than 10% from its early September peak. Researcher Kim said, "Although cautious approaches to high-valuation sectors are expected across the market, selective differentiation by stock is anticipated from October," and "Considering Paypal's confident tone regarding third-quarter payment amounts and revenues, as well as the continued high indicators since July, third-quarter results are expected to exceed market consensus."