PayPal Holdings Inc. (PYPL) stock is down 1.45% on Friday, but the slump is due to overall market conditions and not a reflection of the company’s performance. PayPal was in the news today for a letter that was sent to a deceased customer informing the deceased woman that she was in “breach of contract.”
The company’s representatives were quick to respond to the error.
PayPal representatives contacted the accountholder’s husband, who lost his wife to cancer three weeks prior. The company offered their direct support, cleared the debt that was outstanding and closed the woman’s account.
PayPal has partnered with Venmo, according to a Thursday announcement. The announcement led to the company’s stock soaring 3.3%. The partnership is an expansion of the company’s partnership with ridesharing company Uber.
Venmo is a key part in Uber’s expansion and will allow for riders of Uber to split their fares more easily. Previously, there was a $0.25 charge for splitting a ride’s fare, but Venmo will offer the service for free. PayPal will continue to push Venmo as an option for as many services as possible.
PayPal has introduced several features and partnerships in recent months in an attempt to compete in the mobile app payment industry. Apple Pay and Square’s SQ mobile app are key competitors that offer similar services to PayPal.
The company offers small business loans to business account holders that don’t meet the requirements for invoice factoring or other financing options.
PayPal’s shares have risen 20% since the start of 2018, but investors suggest that it’s going to be difficult for the company to sustain their growth, as the industry continues to expand. Venmo’s partnership will give PayPal further exposure, but the increase in competition may stifle any growth expected from the partnership.
The company has also increased its offline efforts in an attempt to increase market share. The move led to Susquehanna increasing their target price for PayPal stock to $105.
PayPal purchased iZettle, a direct rival to Square Inc., to help offer offline services to consumers. Analysts suggest that the acquisition of iZettle and the Venmo partnerships will help make PayPal relevant offline.
Square’s Cash App, a direct competitor to PayPal’s Venmo, is slated to surpass the number of Venmo downloads in the next few weeks. The partnership with Uber may help sway users back to the Venmo app and offer an incentive to choose Venmo over Cash App and other alternatives.