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PayPal (PYPL) to Offer PPP Access to Combat Coronavirus Woes
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PayPal Holdings, Inc. (PYPL - Free Report) is leaving no stone unturned to deliver enhanced customer experience on the back of its innovative products and services amid this coronavirus outbreak that has been ravaging economies globally.
This is evident from the company’s latest approval from the U.S. Small Business Administration (“SBA”) to provide access to Paycheck Protection Program (PPP) loans.
Notably, the PPP, which was recently created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is an extension of the Small Business Administration 7(a) loan program that allows financial institutions to provide federally-backed, forgivable loans to the small businesses.
PayPal has marked itself the first non-banking institution to provide PPP access. This remains noteworthy.
PPP Move to Benefit
We believe the company is expected to witness a boost in its clientele on the back of its latest PPP approval during this coronavirus-induced crisis, which has disrupted several small businesses globally.
These disruptions, in turn, are resulting in a spike in loan applications generated by the CARES Act.
PayPal under this act will help in seamless distribution of funds to the coronavirus impacted businesses, which is a major positive.
This, in turn, will drive the company’s momentum across the small businesses.
PayPal is making every effort to help the society in combating the coronavrius, and the latest move is in sync with the same.
Apart from the PPP approval, the company has recently deferred repayments on business loans and cash advances in a bid to help those small business customers who have been affected the most by COVID-19 disruptions.
Additionally, PayPal has waived certain fees like chargeback fees and instant funds transfer fees for these businesses.
Further, it has doubled the instant cash back reward on all purchases taking place between Apr 1 and Apr 30 using PayPal Business Debit Mastercard.
Also, it has recently started working with the U.S. Department of the Treasury to synchronise stimulus payment with PayPal account.
Recently, the Internal Revenue Service (IRS) has unveiled a tool to provide Economic Impact Payment digitally. PayPal customers using Cash Card can receive stimulus payment directly into their PayPal account.
We believe that the current scenario, where consumers are prefering online transactions over physical dealings as a preventive measure to check the spread of coronavirus, will aid PayPal in gaining investor optimism on the back of its abovementioned endeavors.
Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Avid Technology, Inc. , CyberOptics Corporation and LogMein, Inc. . All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Avid Technology, CyberOptics and LogMein is currently pegged at 20%, 12% and 5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
PayPal (PYPL) to Offer PPP Access to Combat Coronavirus Woes
PayPal Holdings, Inc. (PYPL - Free Report) is leaving no stone unturned to deliver enhanced customer experience on the back of its innovative products and services amid this coronavirus outbreak that has been ravaging economies globally.
This is evident from the company’s latest approval from the U.S. Small Business Administration (“SBA”) to provide access to Paycheck Protection Program (PPP) loans.
Notably, the PPP, which was recently created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is an extension of the Small Business Administration 7(a) loan program that allows financial institutions to provide federally-backed, forgivable loans to the small businesses.
PayPal has marked itself the first non-banking institution to provide PPP access. This remains noteworthy.
PPP Move to Benefit
We believe the company is expected to witness a boost in its clientele on the back of its latest PPP approval during this coronavirus-induced crisis, which has disrupted several small businesses globally.
These disruptions, in turn, are resulting in a spike in loan applications generated by the CARES Act.
PayPal under this act will help in seamless distribution of funds to the coronavirus impacted businesses, which is a major positive.
This, in turn, will drive the company’s momentum across the small businesses.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Growing Measures to Combat COVID-19
PayPal is making every effort to help the society in combating the coronavrius, and the latest move is in sync with the same.
Apart from the PPP approval, the company has recently deferred repayments on business loans and cash advances in a bid to help those small business customers who have been affected the most by COVID-19 disruptions.
Additionally, PayPal has waived certain fees like chargeback fees and instant funds transfer fees for these businesses.
Further, it has doubled the instant cash back reward on all purchases taking place between Apr 1 and Apr 30 using PayPal Business Debit Mastercard.
Also, it has recently started working with the U.S. Department of the Treasury to synchronise stimulus payment with PayPal account.
Recently, the Internal Revenue Service (IRS) has unveiled a tool to provide Economic Impact Payment digitally. PayPal customers using Cash Card can receive stimulus payment directly into their PayPal account.
We believe that the current scenario, where consumers are prefering online transactions over physical dealings as a preventive measure to check the spread of coronavirus, will aid PayPal in gaining investor optimism on the back of its abovementioned endeavors.
Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Avid Technology, Inc. , CyberOptics Corporation and LogMein, Inc. . All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Avid Technology, CyberOptics and LogMein is currently pegged at 20%, 12% and 5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>