PayPal Launches Omnichannel Platform Zettle

To help small businesses manage in-person and online transactions efficiently, PayPal Holdings Inc. (PYPL) has launched its digital point-of-sale solution PayPal Zettle in the U.S.

Following the news, shares of the company gained marginally to close at $291.56 in Wednesday’s extended trading session.

With the increased adoption of digital payment solutions among consumers, Zettle is expected to allow small businesses to streamline their payment systems and make them more efficient. Furthermore, PayPal’s wide partner network is likely to ensure suitable interoperability of their Zettle accounts with their other digital payment accounts.

The Senior Vice-President of Omni Payments at PayPal, Jim Magats, said, “Consumers want seamless and integrated digital experiences no matter where they shop. As a result, small businesses need access to omnichannel payment and commerce tools to help them effectively compete and meet their customers wherever they are – in-person, online and in-between. We believe in the power of small businesses, and we will leverage PayPal Zettle to better serve in-person businesses and enable them to go digital seamlessly.” (See PayPal stock chart on TipRanks)

Yesterday, Wedbush analyst Moshe Katri reiterated a Buy rating on the stock. However, the analyst raised the price target to $330 from $300, which implies upside potential of 13.2% from current levels.

According to Katri, “Zettle’s long-awaited U.S. launch places Paypal’s merchant eco-system’s breadth of products and services at par with Neutral-rated Square, with one main important advantage — Paypal’s superior transaction conversion rates. The bottom line, we view CY21 as the beginning of a multi-year cycle with accelerating revenue/CEPS growth, reflecting the results of recent/ongoing monetization efforts.”

Consensus among analysts is a Strong Buy based on 21 Buys and 3 Holds. The average PayPal price target of $317.87 implies upside potential of 9.05% from current levels. Shares of the company have gained 64.3% over the past year.