PayPal (PYPL) is enhancing the online shopping experience for both merchants and consumers with the nationwide rollout of Fastlane, its one-click guest checkout solution. After successful testing with select businesses, Fastlane is now available to all U.S. merchants.
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According to PayPal, Fastlane eliminates the need for manual form filling and fastens the checkout process by 32%. Furthermore, the company claims that guest checkout conversions improved by 80% during the testing phase.
However, PayPal is encountering competition in the one-click checkout solution market, with companies like Stripe Link, Checkout.com, OurPass, and Deuna offering similar services. As a result, PYPL aims to expand Fastlane to additional regions after its initial U.S. launch.
Strong Earnings and Positive Outlook
The Fastlane expansion came on the heels of PayPal’s strong second-quarter earnings report. Further, PYPL’s transaction margin, a crucial measure of payment processing profitability, climbed 8% to $3.6 billion, marking its best performance in three years.
Additionally, PayPal raised its financial outlook. For the full year, it expects adjusted earnings to surge by a low to mid-teen percent, surpassing its previous forecast of a mid-to-high single-digit increase.
What Is PayPal’s Price Target?
Overall, Wall Street analysts are cautiously optimistic about PYPL’s prospects. PYPL is a Moderate Buy based on 14 Buy and 17 Hold recommendations. The analysts’ average price target on PayPal stock of $74.92 implies 19.41% upside potential from current levels. Year-to-date, the stock has gained 2.2%.
