After Paypal Holdings Inc (NASDAQ
YPL) announced a partnership agreement with Visa that resolved a longstanding feud over fees paid to the credit card issuer, fast forward seven weeks later, where the online payment giant declared another truce under its belt, smoothing over similar issues with major credit card issuer MasterCard. In reaction, BTIG analyst Mark Palmer anticipates “continued rapid growth” for PYPL and reiterates a Buy rating with a price target of $48, which represents a nearly 29% increase from where the shares last closed. This deal means MasterCard will not charge PYPL with a digital wallet operator fee any more. In return, PYPL has offered a new halt to ACH steering, where customers were once encouraged to directly link PYPL accounts to their banks with the advantage of lower transaction fee charges. Palmer expects the truce “should help should help MasterCard to refine its rewards programs while bolstering its fraud prevention efforts.” Palmer praises the agreement as one of a steam roll of efforts PYPL has maneuvered recently to improve its in-store presence in the midst of tackling rivalry from rising competitors Apple Pay and Android Pay, to name a couple. Palmer commends these efforts for successfully generating “rapid growth” for the company, but notes a weakness in enhancing traction in stores.
BTIG Weighs in on Paypal Holdings Inc (PYPL) Following Truce with MasterCard in Agreement - Smarter Analyst
