AJL1708
Oct 18, 3:49 AM
$PYPL PayPal charges a 3–6% transaction fee, yet pays no yield on the money customers keep with them. Meanwhile, competitors like Wise and digital banks offer cheaper transfers fees, better exchange rates, and interest on balances.
Why would customers continue to use PayPal when competitors offer more value?
If PayPal starts offering the same value as its competitors, its profit margins could decline. If it doesn’t, it risks losing customers, which could eventually lead to lower revenue and TPV.
So what exactly is PayPal’s competitive advantage for the future?
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