Back to top

Image: Bigstock

PayPal (PYPL) Unveils Cash a Check Feature for Select Customers

Read MoreHide Full Article

PayPal Holdings, Inc. (PYPL - Free Report) is leaving no stone unturned to gain strong momentum in the second round of stimulus payments.

The company rolled out Cash a Check feature in the Venmo app for selected customers. This will enable them to cash their government stimulus paper check quickly and securely via the Venmo app, which testifies the aforesaid fact.

Using the new feature, selected customers will have their stimulus checks sent directly into their Venmo account.

For cashing their checks, they will be required to take a picture of the check and send it for review through the Venmo app on a mobile device.

On approval, the money will be directly sent to the Venmo account within minutes.

PayPal to Benefit

The company aims to enable customers to cash in their checks quickly and safely,without visiting a physical check-cashing location amid the coronavirus pandemic.

Hence, PayPal strives to ensure health and safety on the back of the latest move. This is likely to bolster the adoption rate of the Cash a Check feature, as in the current scenario customers prefer to make online and contactless transactions, and stay away from physical dealings as a preventive measure.

Consequently, the move remains a major positive.

Moreover, these benefits will aid the Venmo user base. Notably, Venmo has turned out to be the cash cow of the company. The app is driving growth in the active account base, with the aid of strong monetization efforts and robust features.

Therefore, we believe the latest move will drive the company’s top-line growth in the near term.

Bottom Line

Introducing the Cash a Check feature in the Venmo app is in sync with the company’s persistent efforts toward strengthening the key offerings.

Moreover, it bodes well for PayPal’s strong efforts to help the society in combating the coronavirus-led financial disruptions.

Recently, the company waived the cash-a-check feature’s check-cashing fees for government stimulus paper check recipients.

Further, the latest move is expected to provide PayPal with a competitive edge against its strongest peer Square (SQ - Free Report) .

Zacks Rank & Stocks to Consider

Currently, PayPal carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are KLA Corporation (KLAC - Free Report) and Garmin Ltd. (GRMN - Free Report) . Both companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Long-term earnings growth rates for KLA Corporation and Garmin are currently pegged at 11.56% and 6.8%, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Garmin Ltd. (GRMN) - free report >>

KLA Corporation (KLAC) - free report >>

PayPal Holdings, Inc. (PYPL) - free report >>

Block, Inc. (SQ) - free report >>

Published in