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In a bid to gain further traction among merchants, PayPal PYPL is constantly making efforts to expand the global footprint of its debit card namely PayPal Business Debit Mastercard in collaboration with Mastercard MA.
The company now made this card available in five European countries, which include Ireland, Italy, Spain, Austria and France.
Notably, PayPal Business Debit Mastercard, which is ideal for small businesses, does not carry any monthly fees or foreign exchange fees. The card allows users to access their funds stores in their PayPal accounts at more than 52 million Mastercard acceptance locations throughout the world.
Further, card users get unlimited 0.5% cashback on all their eligible spending and charged only EUR 2 across the world for ATM withdrawals.
We note that the latest move expands the company’s key customer offerings. Further, this highlights the strengthening relationship of PayPal with Mastercard, which holds promise in the digital payment market.
PayPal to Gain
We note that the latest move is likely to strengthen PayPal’s footprint in the global digital payment market further.
Per a report from Statista, this particular market is expected to generate a transaction value of $4.9 trillion in 2020, which is expected to register a CAGR of 13.4% between 2020 and 2024, and hit $8.2 trillion by 2024.
Further, the expanding global reach of PayPal Business Debit Mastercard holds promise during the ongoing pandemic, which has led to uncertainties in the macroeconomic environment that do not bode well for many businesses, especially small ones, worldwide.
Notably, the debit card under review was already available in the United States, Germany and the U.K.
Further, the robust cashback program, on the back of which PayPal pays out more than $45 million to business owners every year, remains a major positive for businesses during these unprecedented times.
We believe the company is expected to gain strong traction among small businesses on this latest move.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Growing Digital Payment Endeavors
The latest move boosts PayPal’s digital payment initiatives.
Apart from this, the company recently extended the partnership with Visa V in a bid to expand its Instant Transfer services to the global markets, thus, enabling fast domestic and cross-border digital payments.
The deal will allow family members residing in two different countries to transfer funds instantly. Also, small businesses can pay and receive payments on a real-time basis.
Further, as mobile wallets are becoming mainstream in the digital payments space, PayPal’s extended partnership with Citi C in an effort to allow the latter’s institutional clients to make payments into customers’ PayPal digital wallets remains noteworthy.
Currently, PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.