Fiserv, PayPal expand partnership to advance stablecoin payments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 23 2025
0mins
Partnership Announcement: Fiserv and PayPal are collaborating to enhance interoperability between FIUSD and PayPal USD, enabling seamless fund transfers for consumers and businesses both domestically and internationally.
Expansion of Payment Solutions: The partnership aims to leverage the strengths of both companies to promote the use of stablecoins and programmable payments, focusing on integrating these currencies into various payment flows, including cross-border transactions and merchant solutions.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 44.460
Low
51.00
Averages
72.86
High
100.00
Current: 44.460
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Impact of Stablecoins on Payment Industry
- Rise of Stablecoins: Stablecoins have gained popularity due to their peg to the U.S. dollar, enabling low-cost, instant transfers over blockchain, posing a potential threat to PayPal, which saw its active accounts grow from 426 million in 2021 to only 439 million by 2025 amid slowing growth.
- Credit Card Giants' Response: Visa and Mastercard do not issue cards directly but rely on banks, generating revenue primarily through 1%-3% swipe fees; while stablecoins may pressure these fees, most businesses prefer to accept these widely used cards to maintain their customer base.
- Challenges for PayPal: PayPal's revenue model, which relies on transaction fees, is undermined by stablecoins offering instant transfers and lower costs, placing it at a disadvantage in an increasingly competitive digital payment landscape.
- Market Outlook Analysis: Although PayPal launched its own stablecoin, PayPal USD, to counter competition, this indicates a lowering of market entry barriers, suggesting that more stablecoin-powered payment platforms may emerge, further fragmenting market share.
See More
Visa, Mastercard, and Amex Integrate Stablecoins into Payment Networks
- Stablecoin Threat: Stablecoins, which are pegged to the U.S. dollar and allow for low-cost, instant transfers, have gained popularity, posing a greater threat to PayPal, which saw its active accounts grow only from 426 million in 2021 to 439 million in 2025, while Visa, Mastercard, and American Express remain less affected.
- Payment Network Integration: Visa and Mastercard do not issue their own cards but rely on banks to do so, generating revenue primarily through 1%-3% swipe fees; despite merchant demands for lower fees, most businesses continue to accept their widely used cards, indicating their strong market position.
- Consumer Protection Advantage: Visa and Mastercard offer robust consumer protection, fraud prevention, and dispute resolution services that stablecoins lack, leading them to test stablecoins for payment settlements within their networks, thereby enhancing their payment systems' efficiency.
- Amex's Unique Positioning: American Express, operating its own bank, targets affluent customers with attractive loyalty programs and travel services while exploring stablecoin usage, showcasing its competitive edge in the high-end market.
See More
PayPal CEO Outlines Structure Simplification and AI Strategy
- Strategic Goals: PayPal CEO Enrique Lores announced at an investor conference that the company aims to achieve at least $1.5 billion in annual savings over the next two to three years by simplifying its structure and optimizing its operations portfolio to enhance efficiency.
- Organizational Restructuring: The company has reorganized PayPal into three business units, including Checkout Solutions & PayPal, Consumer Financial Services & Venmo, and Payment Services & Crypto, to better respond to market demands and improve operational efficiency.
- Operational Optimization: Lores emphasized plans to reduce organizational layers, optimize role ratios, and refine location strategies to enhance productivity and performance across business units and enabling functions, thereby driving overall business growth.
- AI-Driven Transformation: PayPal is advancing AI-enabled process redesign and plans to deepen technology integration in areas such as risk, operations, fraud, and workforce planning to enhance market competitiveness and operational efficiency.
See More
The Future of Digital Payments and Fintech
- AI-Driven Payment Innovation: Major financial institutions are actively exploring tokenized deposits and digital asset infrastructure, although revenue models for some payment applications remain undefined, indicating both challenges and opportunities in the industry's technological transformation.
- Market Diversification: The digital payments theme spans a wide range of business models from consumer fintech platforms to emerging-market mobile money operators, providing investors with multiple entry points into the market, especially driven by advancements in AI and blockchain technology.
- Rise of Stablecoin Infrastructure: As traditional payment platforms converge, the visibility of stablecoin infrastructure continues to grow, with ETF products now encompassing both themes within a single investment framework, reflecting increasing market interest in digital assets.
- Company Updates: Companies like Circle and Block highlighted the application of AI and blockchain in their latest earnings reports, with Block announcing a 40% workforce reduction to adapt to the rapid evolution of new technologies, showcasing the industry's agility and responsiveness to change.
See More
The Tour Guy Launches Flexible Payment Feature for Travelers
- New Payment Feature: The Tour Guy has launched a 'Reserve Now, Pay Later' feature powered by PayPal's payment infrastructure, allowing travelers to secure popular tours without immediate payment, enhancing user experience and market competitiveness.
- Market Demand Response: This feature reflects the growing consumer emphasis on flexibility and convenience in travel planning, particularly for booking high-demand attractions like the Colosseum and Vatican, addressing immediate traveler needs.
- No Loan Pressure: Unlike traditional 'buy now, pay later' options, this feature does not involve loans, credit checks, or interest, minimizing financial pressure on users before their trips and enhancing consumer trust.
- Industry Transformation: This move signifies that mid-sized travel companies can now offer sophisticated booking experiences comparable to large online travel agencies, boosting industry competitiveness and promoting diverse development in the travel market.
See More
PayPal's Financial Weakness Leads to Significant Stock Decline
- User Account Growth Slows: PayPal currently boasts 439 million active accounts, and while total payment volume reached $464 billion in Q1, the sluggish growth compared to last year indicates increasing market competition pressures.
- Financial Performance Declines: The adjusted operating margin fell to 18.4% in Q1 from 20.7% a year ago, with adjusted operating income decreasing by 5% year-over-year to $1.5 billion, reflecting a weakening profitability.
- Investor Sentiment Deteriorates: Since the earnings report on May 5, PayPal's stock has dropped 12%, as the market reacted negatively to only 2% growth in online branded checkout, raising concerns about the company's future growth prospects.
- Valuation Attractiveness Diminishes: Although PayPal's forward price-to-earnings ratio stands at 8.4, significantly lower than the S&P 500's 22.2, analysts remain cautious about its future performance due to intensified competition and slower growth, advising existing shareholders to hold their positions.
See More
Impact of Stablecoins on Payment Industry
- Rise of Stablecoins: Stablecoins have gained popularity due to their peg to the U.S. dollar, enabling low-cost, instant transfers over blockchain, posing a potential threat to PayPal, which saw its active accounts grow from 426 million in 2021 to only 439 million by 2025 amid slowing growth.
- Credit Card Giants' Response: Visa and Mastercard do not issue cards directly but rely on banks, generating revenue primarily through 1%-3% swipe fees; while stablecoins may pressure these fees, most businesses prefer to accept these widely used cards to maintain their customer base.
- Challenges for PayPal: PayPal's revenue model, which relies on transaction fees, is undermined by stablecoins offering instant transfers and lower costs, placing it at a disadvantage in an increasingly competitive digital payment landscape.
- Market Outlook Analysis: Although PayPal launched its own stablecoin, PayPal USD, to counter competition, this indicates a lowering of market entry barriers, suggesting that more stablecoin-powered payment platforms may emerge, further fragmenting market share.
See More
Visa, Mastercard, and Amex Integrate Stablecoins into Payment Networks
- Stablecoin Threat: Stablecoins, which are pegged to the U.S. dollar and allow for low-cost, instant transfers, have gained popularity, posing a greater threat to PayPal, which saw its active accounts grow only from 426 million in 2021 to 439 million in 2025, while Visa, Mastercard, and American Express remain less affected.
- Payment Network Integration: Visa and Mastercard do not issue their own cards but rely on banks to do so, generating revenue primarily through 1%-3% swipe fees; despite merchant demands for lower fees, most businesses continue to accept their widely used cards, indicating their strong market position.
- Consumer Protection Advantage: Visa and Mastercard offer robust consumer protection, fraud prevention, and dispute resolution services that stablecoins lack, leading them to test stablecoins for payment settlements within their networks, thereby enhancing their payment systems' efficiency.
- Amex's Unique Positioning: American Express, operating its own bank, targets affluent customers with attractive loyalty programs and travel services while exploring stablecoin usage, showcasing its competitive edge in the high-end market.
See More
PayPal CEO Outlines Structure Simplification and AI Strategy
- Strategic Goals: PayPal CEO Enrique Lores announced at an investor conference that the company aims to achieve at least $1.5 billion in annual savings over the next two to three years by simplifying its structure and optimizing its operations portfolio to enhance efficiency.
- Organizational Restructuring: The company has reorganized PayPal into three business units, including Checkout Solutions & PayPal, Consumer Financial Services & Venmo, and Payment Services & Crypto, to better respond to market demands and improve operational efficiency.
- Operational Optimization: Lores emphasized plans to reduce organizational layers, optimize role ratios, and refine location strategies to enhance productivity and performance across business units and enabling functions, thereby driving overall business growth.
- AI-Driven Transformation: PayPal is advancing AI-enabled process redesign and plans to deepen technology integration in areas such as risk, operations, fraud, and workforce planning to enhance market competitiveness and operational efficiency.
See More
The Future of Digital Payments and Fintech
- AI-Driven Payment Innovation: Major financial institutions are actively exploring tokenized deposits and digital asset infrastructure, although revenue models for some payment applications remain undefined, indicating both challenges and opportunities in the industry's technological transformation.
- Market Diversification: The digital payments theme spans a wide range of business models from consumer fintech platforms to emerging-market mobile money operators, providing investors with multiple entry points into the market, especially driven by advancements in AI and blockchain technology.
- Rise of Stablecoin Infrastructure: As traditional payment platforms converge, the visibility of stablecoin infrastructure continues to grow, with ETF products now encompassing both themes within a single investment framework, reflecting increasing market interest in digital assets.
- Company Updates: Companies like Circle and Block highlighted the application of AI and blockchain in their latest earnings reports, with Block announcing a 40% workforce reduction to adapt to the rapid evolution of new technologies, showcasing the industry's agility and responsiveness to change.
See More
The Tour Guy Launches Flexible Payment Feature for Travelers
- New Payment Feature: The Tour Guy has launched a 'Reserve Now, Pay Later' feature powered by PayPal's payment infrastructure, allowing travelers to secure popular tours without immediate payment, enhancing user experience and market competitiveness.
- Market Demand Response: This feature reflects the growing consumer emphasis on flexibility and convenience in travel planning, particularly for booking high-demand attractions like the Colosseum and Vatican, addressing immediate traveler needs.
- No Loan Pressure: Unlike traditional 'buy now, pay later' options, this feature does not involve loans, credit checks, or interest, minimizing financial pressure on users before their trips and enhancing consumer trust.
- Industry Transformation: This move signifies that mid-sized travel companies can now offer sophisticated booking experiences comparable to large online travel agencies, boosting industry competitiveness and promoting diverse development in the travel market.
See More
PayPal's Financial Weakness Leads to Significant Stock Decline
- User Account Growth Slows: PayPal currently boasts 439 million active accounts, and while total payment volume reached $464 billion in Q1, the sluggish growth compared to last year indicates increasing market competition pressures.
- Financial Performance Declines: The adjusted operating margin fell to 18.4% in Q1 from 20.7% a year ago, with adjusted operating income decreasing by 5% year-over-year to $1.5 billion, reflecting a weakening profitability.
- Investor Sentiment Deteriorates: Since the earnings report on May 5, PayPal's stock has dropped 12%, as the market reacted negatively to only 2% growth in online branded checkout, raising concerns about the company's future growth prospects.
- Valuation Attractiveness Diminishes: Although PayPal's forward price-to-earnings ratio stands at 8.4, significantly lower than the S&P 500's 22.2, analysts remain cautious about its future performance due to intensified competition and slower growth, advising existing shareholders to hold their positions.
See More
