Singapore markets open in 5 hours 12 minutes

The Zacks Analyst Blog Highlights: PayPal, Alibaba, American Express, Mastercard and Visa

Zacks Equity Research

For Immediate Release

Chicago, IL –October 3, 2019 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PayPal Holdings, Inc. PYPL, Alibaba Group Holding Limited BABA, American Express Company AXP, Mastercard Inc. MA and Visa Inc. V.

Here are highlights from Wednesday’s Analyst Blog:

PayPal to Tap China’s Digital Money Market: Will It Succeed?

The financial and payment platform market in China has been targeted by US giants for a long time but the stringent norms made it difficult for the latter to venture in that space. Last year, China’s central bank announced that “it would open up further to foreign payment companies”, thereby paving the road for US firms to make a foray in the communist country’s market.

Last November, American Express became the first US card platform to provide card-clearing services in China. This business initiative spread positive vibes in the process. Now, PayPal is all set to enter the market after acquiring a majority stake in GoPay. Will PayPal be able to establish a strong foothold and succeed as a trader in the region?

PayPal to Enter China in Q419                         

On Sep 30, China's central bank finally approved PayPal Holdings, Inc.’s appeal to acquire 70% stake in China’s GoPay (Guofubao Information Technology Co. [GoPay], Ltd.) for an undisclosed deal value. This will make PayPal the first foreign company to make inroads into the digital payment service market in China.

The digital payment market in China had only three players, namely Alibaba Group Holding Limited’s Alipay, GoPay and others. While both Alipay and WeChat generally engage in intra-country money transfer and e-wallet service, GoPay provides payment for industrial products, e-commerce, cross-border trade, aviation tourism et al.

This is a big step amid the ongoing Sino-US trade rift as PayPal can now penetrate a totally unadulterated market with a huge scope for expansion. US credit card companies have been continuously attempting to enter the market in China but recently the latter opened doors to the players though at a slower pace.

The restriction on the US entities to enter the payment arena in China has been strong, making the former cough up a lot for fulfilling the licensing requirements and this has for long benefited the Chinese firms.

The biggest example of the above is American Express Company, which commonly carries out transactions through its own platform. In China, AmEx has to make payment via the state-controlled China Union Pay to process transactions. Fortunately, per the latest preliminary approval in November 2018, the player has been allowed to process payments on AmEx branded cards.

Other players like Mastercard Inc. and Visa Inc. are trying hard to collaborate with domestic Chinese companies to tap the well-guarded uncharted market.

Chance for Success

Per a Frost & Sullivan research report, the mobile payment market is expected to grow 21.8% in 2023 compared with 2017, influenced and driven by the rise in e-commerce. In fact, the aforementioned report also states that active mobile payment customers’ number will shoot up to 956 million in 2023 from 562 million in 2017.

As China’s central bank turns generous in allowing US payment platforms to enter the market, PayPal has hit the bull’s eye and will surely succeed. A push in the online shopping will further boost the company’s expansion.

PayPal will be the lone player in cross-border transaction in China and with consumers having access to several online stores worldwide. This will help it winning more clients as consumers will be able to purchase from online across the globe.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339                                                                            

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research