PayPal unbundling should drive wider adoption of Fastlane, says Mizuho

After PayPal (PYPL) announced that Adyen (ADYEY) will offer Fastlane by PayPal for its enterprise and marketplace customers in the U.S., with plans to extend this offering globally in the future, Mizuho commented that today’s news indicates that the “Fastlane product must be strong,” that unbundling should drive wider adoption of Fastlane, and argued that investors “should start thinking about PYPL as a platform for all-things-payments vs. a myopic narrow view of just branded checkout.” The analyst, who sees potential for wider adoption of Fastlane to drive a $1B-$1.5B transaction margin dollar lift, or 5-10% upside, keeps an Outperform rating and $90 price target on PayPal shares.