Paypal Stock – Paypal Stock – Square’s Cash App and PayPal’s Venmo Benefit from Growing Generation Y Use of Digital Wallets, Analysts Explain | Zoom Fintech | Zoom Fintech

Paypal Stock – Paypal Stock – Square’s Cash App and PayPal’s Venmo Benefit from Growing Generation Y Use of Digital Wallets, Analysts Explain | Zoom Fintech

Paypal Stock – Square’s Cash app and PayPal’s Venmo benefit from increased use of digital wallets by millennials, analysts say

Catherine wood, Founder, CEO and CIO of ARK Investment Management LLC, an investment management firm that last year managed the largest actively managed exchange-traded fund (ETF), recently commented on developments in the fintech industry and shared its perspective on future growth opportunities.

Wood, who previously worked at Jennison Associates for 18 years as Chief Economist, Analyst, Portfolio Manager and Managing Director, noted that his company believes fintech is “probably one of the most successful technology platforms. more misunderstood ”.

Wood, whose comments came during Fintech Zoom’s “Raz Report” session last week, predicted that digital wallets will drain banks. According to Woods, digital or online wallets will increasingly be used for customer banking and they will also be widely adopted for loans, debit / credit cards and for purchasing stocks and crypto-assets. .

Wood added that “digital wallets will not only be used for our banking operations, they will be bank branches in our pockets.” She further noted that banking institutions will face the “innovator’s dilemma” and will likely struggle to catch up with fintech challengers.

Ark Funds CEO pointed out that Square Inc’s (NYSE: SQ) Cash app and Paypal Holdings (NASDAQ: PYPL) Venmo are now benefiting from the shift to digital wallets and fintech apps, mostly driven by Millennials.

In its 2021 Big Ideas list, Ark said the value of digital wallets per user could drop from $ 1,900 currently to around $ 20,000 by 2025.

Notably, Square is the second largest holding in the flagship Ark Innovation ETF (NYSE: ARKK), accounting for 6.3% of all assets. At the same time, Paypal is the 19th largest holding company of the Ark Innovation ETF, representing 1.7% of assets.

Square and Paypal are the top 10 stocks in the Ark Next Generation Internet ETF (NYSE: ARKW). Square and Paypal rank first and second respectively for Ark Fintech Innovation ETF assets, representing 9.9% and 5.4% of total fund assets respectively.

As recently reported, the acquisition of Jay-Z’s Tidal by Square is not expected to have a significant impact on the Fintech company’s revenue, the company claims. Rob Walker, senior writer at Marker on the intersections of design, consumer culture, branding and business, recently analyzed Square’s $ 297 million purchase of Tidal, a broadcast service of Tidal. continuous music.

As reported, Mizuho’s Dan Dolev said fintechs like PayPal and Square have the advantage of P2P payments over big banks.

Dolev noted that Square is “all about the terminal value”. He explained that this is how they think of Square – and he thinks this is how investors should assess or assess Square’s business model.

Dolev also believes that what Square and PayPal have is “they have a brand.” He further asserts that these Fintechs have “the P2P advantage”. He clarified that what he meant was that because consumers use these services to transfer funds between them – “nobody really has that, that P2P thing – it cuts the cost of acquisition.”

He added:

“So the cost of acquiring Square for a typical customer is $ 5. It’s incredibly low in terms of what banks pay to acquire their customers. And it is because of this P2P viral effect. By the way, PayPal has the exact same thing with Venmo. So these are the structural advantages of Square and PayPal. “

He recognized that there is a lot of room for growth and development, because they are all “taking shares in the banks, in the big banks”. He predicts that Square and PayPal will be “on top”.

As reported in February 2021, PayPal plans to offer a super app with fintech services like crypto, payments, investments, and rewards accessible through a common interface.

Paypal Stock – Square’s Cash app and PayPal’s Venmo benefit from increased use of digital wallets by millennials, analysts say

Paypal Stock – Paypal Stock – Square’s Cash App and PayPal’s Venmo Benefit from Growing Generation Y Use of Digital Wallets, Analysts Explain | Zoom Fintech


Source link

About Dawn Valle

Dawn Valle

Check Also

“America First” Could Become “India First” | Zoom Fintech

America is kind because of its willingness to simply accept gifted immigrants. That’s what Nandan …

Leave a Reply

Your email address will not be published. Required fields are marked *