PayPal SWOT Analysis 2022 – PayPal Holdings, Inc.

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PayPal SWOT Analysis analyzes, PayPal is an American online payment system company. It provides the service of online transfer of funds and money contrary to the conventional payment methods via papers and checks. The company also offers its services to online vendors, commercial users, and auction websites. The brand charges a certain amount in return for providing the service of the online transferring of funds.

Did you know? In the year 2000, PayPal merged with Elon Musk’s company. Since then, the American company shifted its main focus into the money transfer business. The company was still known as Confinity when it merged with Elon Musk’s online banking site, X.com.

The PayPal is one of the leading firms in its industry. PayPal maintains its prominent position in market by critically analyzing and reviewing the SWOT analysis.  SWOT analysis a highly interactive process and requires effective coordination among various departments within the firm such as – marketing, finance, operations, management information systems and strategic planning.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by PayPal.

PayPal At A Glance – PayPal SWOT Analysis

Company: PayPal Holdings, Inc.
Founders: Elon Musk | Peter Thiel | Luke Nosek | Max Levchin | Yu Pan
Year of establishment: December 1998, Palo Alto, California, United States
CEO: Dan Schulman
Headquarters: San Jose, California, United States
Employees (Dec 2020): 26,500
Ticker Symbol: PYPL
Type: Public
Annual Revenue (Dec 2020): $21.4 billion
Profit net income (Dec 2020): $8.9 billion

Products & Services: Pay on eBay | Pay on websites | Pay on the go | Debit cards | Credit card 

Company Website: www.paypal.com

PayPal Competitors 

Competitors: Google Wallet | 2Checkout | Skrill | Intuit | ProPay | Click2sell | Wepay

PayPal SWOT Analysis – SWOT Analysis Of PayPal

SWOT Analysis Of PayPal analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With PayPal SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about PayPal SWOT Analysis. Below Is The Detailed SWOT Analysis Of PayPal.

PayPal Strengths – PayPal SWOT Analysis

1. Worldwide Presence: PayPal is present in more than 200 countries making it the most dominant player in the mobile and electronic payments business. It has grown rapidly in the new markets and is establishing its sights on the globe. It is available in

2. Big Customer Base: This is one of the biggest user bases in the market with more than the 192 million accounts of users active in 2016, and a the registered merchant account having fifteen million customers. It’s operated with 25 currencies. This is what makes PayPal an extremely well-known and respected company.

3. Provides a variety of solutions: PayPal has a vast range of services, which include: PayPal here, Pay Flow Payment gateway, online invoice virtual terminal as well as electronic products trading options and Bill me Later. This is an opportunity to engage a wide range of both merchants and customers.

4. Strong backing: PayPal was acquired by eBay at the end of July in 2002. The purchase price was $1.5bn. eBay has supported PayPal in the development of solid technologies and has boosted its security mechanisms.

5. User-Friendliness: PayPal is easy to use for customers as well as merchants. Merchants are able to easily set to use PayPal however in Strive which is a competitor to PayPal it is a developer who will be required to create.

6. Total number of Active PayPal members: Over 192 million users, A large number of payments were made through PayPal in 2015 was 4.9 billion.

PayPal Weaknesses – PayPal SWOT Analysis 

1. High Exposed to Frauds: An electronic payments system needs a strong protection and technical support in light of the risk of fraud. There have been numerous hoax and phishing attacks in these instances, which erodes confidence in the system.

2. High Processing Fees: PayPal has high processing fees for the transactions it handles, international cards Chargebacks, Card authorization and chargebacks. This could cause confusion for users , which is a problem.

3. The controversy surrounding payment transactions: PayPal has been accused of withholding funds, freezing, and the termination of PayPal accounts. This has a negative impact on the reputation for PayPal.

4. Relying on connectivity: PayPal relies on connectivity to the internet and digital literacy. This can be a hindrance to growth in the less developed nations.

PayPal Opportunities – PayPal SWOT Analysis 

1. The move towards cashless or fewer cash-based economies: Countries like India are moving towards cashless economy or a less cash-based one and this presents an amazing possibility for platforms like PayPal to grow into these areas.

2. Digital money and technology advancements: With the penetration of the internet, increased connectivity, and a higher level of level of literacy in digital, Digital ways of paying are growing more popular year after year. This has resulted in Digital currency an increase.

3. Tie currently tie -ups with businesses: PayPal can tie-up with different B2C businesses to be included in the payment options available and thus expanding its customer base as well as the number of the amount of money transferred.

PayPal Threats – PayPal SWOT Analysis

1. Strenuous economy guidelines: In countries such as China, Japan and Taiwan there are strict economic rules that restrict the establishment of these countries.

2. Competition: PayPal has to contend with a massive global competition with platforms like WePay, Google Wallet. and local competitors like the Paytm.

3. Security threats from fraud and hacking: PayPal faces a large risk of fraud and hackers. This is a major threat when you consider the magnitude at the rate at which PayPal and the entire business operates.

4. Bank Services: Banking services like Net banking and IMPS (immediate funds transfer) are services that take over the capabilities of PayPal. In addition, there are intermediaries that permit direct transactions with banks. This means that intermediaries such as PayPal are cut off.

Paypal SWOT Analysis Template

Paypal SWOT Analysis Template

This is the SWOT report that PayPal has done. Please let us know if you have additional suggestions to add.


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