Google Pay become a competitor, Piper Sandler reiterated PayPal’s overweight rating

Zhitong Finance App learned that Piper Sandler analyst Christopher Donat reiterated the “overweight” rating of PayPal (PYPL.US) and the “neutral” rating of Square (SQ.US), and said that Google Pay has an effect on these two payment applications.

In Apple app store’s financial app list, Square tops the list, followed by PayPal’s apps Mobile Cash and Venmo, and Google(GOOG.US)’s Google Pay ranked fifth.

The analyst pointed out that in December, the year-on-year growth rate of downloads of Square’s Cash App dropped from nearly 80% in April to about 12%. It is worth noting that the US government launched the “CARES Act” and related stimulus measures in April.

Analysts said that Square may benefit from the recent US$900 billion stimulus plan, which includes a US$600 grant directly to individuals. However, he believes that the boost from the stimulus plan may come more from transaction revenue than new active users.

At the same time, he believes that the increase in PayPal’s downloads maybe because it provides cryptocurrency services in the Mobile Cash application.

(Via)