TL/DR If paypal bring to market a stable coin, it will allow them offer cheaper processing to businesses, cross border remittance at record low costs, and rocket their digital wallet to be the new super app of the western world (North America, Europe). 2022 Paypal will juice up adoption and usage of the digital wallet.
Positions: 300k on $PYPL and currently down 20%. My avg is effective 132 USD p/s
Original post: https://imgur.com/a/XLL9ane
1) Who does Amazon/all Ecommerce hate? Credit card payment companies that charge crazy fees. even though they made peace with Visa recently my personal opinion is that they are looking to explore alternatives
2) What does a Paypal $PYPL stable c bring to the table?
- A stable corn brought to market by mature payments/exchange platform would be more accepted WW
- They already have payout to c on certain and this would be now payout to their own stable c.
- Retailers are already hooked into paypal's omni present buttons and they will have NONE of the risks and if processing fees for the stable c are less then visa/mc/amex they may be more willing to actively partner to promote adoption.
- Paypal's direction is towards the super app. A stable c as the core would allow them to offer better incentives to consumers because now they benefit from control of the entire payments processing lifecycle.
- Credit cards current win over new clients by offering cashback on purchases, points etc. A Paypal wallet stable c would allow them to offer similar promotions with BNPL features.
- The digital wallet is already setup, it's just missing the stable c core that enables them to gain value by owning the processing value chain. They will already be spending heavily this year to promote loyalty and adoption. We should see crazy deals to use Paypal's digital wallet EVEN in 2022. See below from Q4 F21 update:
When they drive increased incentives they will naturally increase share on payments because they are already the lead for digital wallets in the Western World.
3) The arms race to create holy grail of the North American super APP is already here
- https://techcrunch.com/2022/01/07/regulating-banned word-could-create-american-super-apps/
- Asia has wechat, and every single bank, fintech, mega company is looking to be the wechat of the western world
- Paypal is already integrated, cross platform and if they are able to integrate a Stable c into their digital wallet offering, it is my opinion they will be able to cement their lead.
- Currently available features
- pay with c
- digitize your wallet (store cc's, reward cards, bank cards securely)
- bill payments, adhoc or scheduled
- Coming soon is interest bearing savings account through partnership with a FDIC bank