Since the beginning of 2019, shares of PayPal (NASDAQ:PYPL) have grown nearly 30%. And PayPal stock is expected to go even higher after it reports earnings next week.
Recently, my InvestorPlace colleague Josh Enomoto commented about PayPal’s impressive habit of continuing to achieve double-digit growth in its total payment volume (TPV). Enomoto commented that investors don’t typically see this kind of growth from a company that has already had substantial expansion.
In simple terms, PayPal continues to behave like a start-up company. But as I see it, it shouldn’t be that surprising that PayPal remains the cool kid on the playground.
PayPal Is Garnering Loyalty from an Important Niche
I believe the secret to PayPal’s success isn’t really a secret at all. It came on the scene as an alternative to the middleman role that traditional banks were playing. However, as PayPal was moving past the early adopter stage, the company made an interesting pivot. Rather than moving closer to traditional banking, they moved further away. PayPal aggressively and purposefully targeted the unbanked.
There are some individuals who stay away from traditional banks out of concern for privacy and/or security. But many of the unbanked are not that way by choice. Circumstances have typically put them in a precarious place financially. Unfortunately, this leaves them with options like payday loans and other predatory options.