Should You Buy PayPal Stock in 2025? Expert Insights for South African Investors

What is PayPal?

How much is the PayPal stock?

The price of PayPal stock is rising this week. As of now, PayPal (PYPL) trades at $70.93, showing a 24-hour decrease of $0.51 (-0.71%), while posting a weekly gain of approximately +1.8%.

With its recent recovery and a strong presence in digital payments, PayPal offers South African investors exposure to an innovative global fintech, though the lack of a dividend and some volatility are worth considering.

Our full analysis of the PayPal stock

Following a thorough review of PayPal Holdings Inc.’s most recent quarterly results and an in-depth analysis of its share price performance since 2022, we have leveraged a comprehensive suite of proprietary analytic tools to synthesise financial metrics, technical signals, sector data, and competitive intelligence. The result is a holistic view of PayPal’s fundamental trajectory within the dynamic technology-driven payments sector. So, why might PayPal stock once again become a strategic entry point into digital financial services in 2025?

Recent Performance and Market Context

PayPal’s share price has demonstrated considerable resilience and a measured recovery in the first half of 2025, currently trading at $70.93 (as of 30 May 2025), recovering solidly from late-2024 lows. Over the past week, the stock posted a 1.8% gain, confirming renewed investor interest, and is up meaningfully from its 52-week floor of $55.88. Given ongoing volatility in the technology sector, this rebound stands out, especially as PayPal consistently outpaces broader market and fintech peers when positive sentiment returns to digital payments.

Underlying this market performance are several recent catalysts: PayPal’s Investor Day in February 2025 provided clarity on a multi-year growth roadmap, while expanded collaboration with Coinbase around stablecoin integration positions PayPal at the heart of the fast-growing crypto payment ecosystem. These developments are amplified by a macroeconomic environment increasingly supportive of digital transactions, with sustained fintech adoption across both developed and emerging markets—including Africa—progressively displacing cash and traditional payment rails.

Moreover, global digital commerce trends, supported by rising internet penetration and e-commerce tailwinds, show few signs of abating. The South African market in particular, which continues to embrace mobile and online payments at pace, appears well-aligned with PayPal’s strengths and ongoing investments.

Technical Analysis

A technical review of PayPal’s current chart structure reveals a series of bullish signals that merit close attention from both short-term traders and longer-term investors. Primary momentum indicators, such as the MACD (12,26,9) at +1.46, are firmly in buy territory, suggesting an emergent upward trend. The Relative Strength Index (RSI) at 58.15 paints a neutral-to-positive outlook: neither overbought nor oversold, giving substantial room for further gains before technical constraints could arise.

Shorter- and medium-term moving averages are flashing buy signals—the 20-day at $70.32 and 50-day at $66.87 both above current price action, indicating positive near-term momentum. The 100- and 200-day averages ($73.27 and $76.46 respectively) are still technically negative, but as the current price continues to consolidate above support at $69.40 and eyes resistance at $73.20–$74.00, a crossover event could evolve into a more sustained bullish phase. The technical structure therefore argues for a strategic accumulation phase, with price action intent on retesting higher levels as trading volumes increase.

• Immediate support: $69.40 (a well-tested low)
• First resistance: $73.20–$74.00 (potential breakout trigger)
• Favorable MACD crossover: Indicates growing institutional accumulation
• Volume trends: Building steadily to reinforce price direction

This context suggests favourable technical conditions for positioning, especially for those monitoring momentum-driven setups.

Fundamental Analysis

From a fundamental perspective, PayPal bears many hallmarks of an undervalued leader in fintech, with recent operating results underscoring renewed execution strength. For the year ended December 2024, total revenue hit $31.797 billion, a 6.8% year-on-year increase—outpacing most sector peers. Net profit reached $4.147 billion, reflecting robust operational efficiency and a scalable business model.

First quarter 2025 performance was particularly noteworthy, posting earnings per share (EPS) of $1.33, again beating analyst consensus ($1.29), and confirming that top-line and bottom-line momentum remain both positive and slightly underestimated by the market. Consensus projections forecast further growth, with revenue expected to rise to $32.683 billion in 2025 (+2.8%) and $34.574 billion in 2026 (+5.8%).

On valuation metrics, PayPal’s current P/E ratio of 16.03 (trailing twelve months) and 21.38 (2024) is highly attractive relative to both historic norms and key competitors in the digital payments space—particularly given its enduring market leadership, diversified revenue sources, and unlevered balance sheet. The company is not presently paying a dividend, but has instead directed capital towards growth investments in AI innovation, new platform launches, and strategic partnerships.

• Global leadership: Over 210 million active users worldwide, with significant brand power in key geographies, including South Africa.
• Ecosystem breadth: Control of a diversified payments portfolio—PayPal, Venmo, Braintree, and Xoom—facilitates cross-selling and network effects.
• Innovation: Deepened commitment to AI-powered merchant and consumer solutions, alongside early moves in agentic commerce and embedded finance.
• Strategic alliances: Partnerships with household names (Visa, Coinbase, and others) further secure distribution and accelerate product innovation.

These factors combine for a fundamental outlook that strongly justifies renewed investor focus, especially as PayPal’s valuation appears to discount long-term growth prospects that remain solidly intact.

Volume and Liquidity

Liquidity and sustained trading activity are core assets to PayPal’s investment profile. With over 400,000 shares trading daily and a market capitalisation of $69.5 billion, the stock exhibits robust turnover and deep institutional engagement. The free float of 99.57% ensures that market-set prices are both dynamic and efficient—a critical advantage for both retail and professional participants.

Consistent, healthy volume both confirms market confidence and ensures that larger buyers or sellers can act without disrupting price stability. This bodes especially well during periods of heightened investor interest or ahead of major news releases, providing flexibility to enter or exit positions strategically.

For South African market participants—including those with international exposure through dual-listed ETFs or direct cross-border trading—this high degree of liquidity represents an attractive attribute relative to less liquid technology stocks.

Catalysts and Positive Outlook

• AI-Driven Transformation: PayPal is at the forefront of ‘agentic commerce’, piloting autonomous transaction capabilities via AI that could redefine digital payment experiences globally.
• Crypto Expansion: The deepening partnership with Coinbase and ongoing expansion of stablecoin functionality place PayPal at the vanguard of mainstream crypto adoption—a sector undergoing rapid institutionalisation.
• PayPal Open Launch: Scheduled for this year, this unified platform aims to offer seamless payment infrastructure for merchants and consumers alike, supporting monetisation and retention initiatives.
• Structural Sector Growth: As digital payments penetration continues apace in emerging markets—including Africa—PayPal’s solutions are uniquely positioned to address both local and cross-border ecommerce demands.
• Favourable Sentiment and Policy Backdrop: The combination of moderate inflation, stabilized interest rates, and constructive regulatory signals in major regions underpin a positive outlook for fintech businesses.

Importantly, the analyst community now leans decisively bullish: 53 buy ratings, only 2 sells, and a consensus median price target of $76.71 (+8.1% upside), with an extended analyst target range that supports the prospect of a structurally higher valuation band.

Investment Strategies

• Short-term entry: For active traders, the stock’s proximity to support at $69.40 offers a compelling risk/reward setup, with upside to the $73.20–$74.00 resistance zone, backed by strengthening MACD momentum and positive earnings surprises as catalysts.
• Medium-term positioning: Investors looking to capture potential platform launches or product innovation cycles before broad market recognition can accumulate positions ahead of expected news flow (notably, the rollout of PayPal Open and further AI-driven initiatives).
• Long-term allocation: For those seeking sustained value exposure to digital commerce, now appears an opportune time to build or add to positions, taking advantage of an appealing P/E, strong organic growth, and PayPal’s integration within the ‘future of finance’ macro narrative.

Crucially, the stock’s late-2024 correction has created a base that enables staged entry and disciplined position sizing, allowing investors to capitalise on both cyclical price movements and structural growth trends.

Is it the Right Time to Buy PayPal?

Weighing the sum of these factors, PayPal emerges as a highly attractive consideration for investors looking to participate in the ongoing digitisation of financial services. Its combination of technical resilience, compelling value, accelerating innovation, and benchmark operational results make for a robust investment case. The breadth of pending catalysts, together with improving market sentiment and South Africa’s own transition towards digital payments, underscores the relevance and timeliness of renewed interest in the stock.

With a clear upward bias in both the near term and longer horizon, PayPal stock seems to represent an excellent opportunity for those seeking to position ahead of the next wave of digital commerce growth. As PayPal continues to lead technological innovation in payments, supports a vast global user base, and demonstrates financial outperformance, the timing arguably favours investors who act while the company’s story is under transition, not after the next leg higher is fully priced in.

In essence, PayPal stands on the cusp of renewed leadership, inviting market participants to consider its strong upside potential as digital finance enters its next chapter.

How to buy PayPal stock in South Africa?

Buying PayPal shares online is straightforward and secure for South African investors when you use a regulated broker. You can choose between two main approaches: purchasing PayPal shares directly (spot/cash buying), which makes you a shareholder, or trading contracts-for-difference (CFDs), which allow you to speculate on PayPal’s price movements with leveraged positions. Each method has specific features and fee structures. Your decision will depend on your investment profile and goals—see the comprehensive broker comparison further down this page to help you make an informed choice.

Spot buying

Spot buying means acquiring PayPal shares outright in your name, so you participate in the company’s prospects and become entitled to any shareholder rights (although PayPal does not pay a dividend at present). Most regulated brokers serving South Africans charge a fixed commission per order when you buy US stocks, typically ranging from R40 to R150 (about $2–$8), depending on the platform.

Example

Let’s say the PayPal share price is $70.93 (ZAR 1,320 at an exchange rate of 18.6). Investing $1,000 (approx. R18,600) allows you to buy about 14 shares ($1,000 ÷ $70.93 ≈ 14), after accounting for a brokerage fee of $5 (R93).

✔️ Gain scenario: If PayPal’s share price rises by 10%, your shares are now worth $1,100.

Result: You make a $100 gross gain, or +10% on your investment (before any applicable taxes or exchange rate fluctuations).

Trading via CFD

CFDs (Contracts for Difference) are financial instruments that let you speculate on PayPal’s share price without actually owning the underlying shares. With CFDs, you can also use leverage—magnifying both potential gains and losses. Fees typically include the “spread” (the difference between buying and selling price) and overnight financing costs if you keep positions open for more than a day.

Example

Suppose you open a CFD position on PayPal with $1,000 (about R18,600) and apply 5x leverage. This gives you exposure to $5,000 worth of PayPal shares.

✔️ Gain scenario: If the stock price rises by 8%, your position gains 8% × 5 = 40%.

Result: You earn a $400 gain on your $1,000 investment (excluding spreads and overnight fees).

⚠️ Remember, leverage increases both potential gains and losses.

Final advice

It’s important to compare brokers’ fees, trading conditions, and platform features before you start investing in PayPal. Whether spot buying or CFD trading is right for you depends on your risk appetite, investment strategy, and financial goals. Explore the broker comparison further down this page to identify the best solution for your needs, and remember—always invest responsibly.

Our 7 tips for buying PayPal stock

The latest news about PayPal

PayPal shares gained approximately 1.8% over the past week, supported by technical and market sentiment improvements. Recent performance data indicate that the stock closed at $70.93 on 30 May 2025, with a notable recovery on a six-month horizon and a current RSI at 58.15, suggesting a neutral stance. The MACD indicator turned positive, providing a near-term bullish momentum. Additionally, both the 20-day and 50-day moving averages moved into buy territory, reflecting underlying investor confidence and a constructive outlook, elements likely to resonate with ZA investors mindful of global fintech trends.

PayPal's Q1 2025 results exceeded analyst expectations, highlighting continued operational resilience and financial outperformance. The company reported quarterly earnings per share of $1.33, surpassing consensus estimates of $1.29, while sustaining revenue growth in its core segments. Annual results for 2024 showed a 6.81% rise in revenue to $31.797 billion and stable operational profitability, demonstrating the platform's sustained global traction and scalability. This solid financial delivery enhances investor trust, with potential relevance for South African stakeholders given the importance of robust payment partners supporting local e-commerce and digital trade.

Strategic innovation, including progress in AI-driven commerce and cryptocurrency integration, positions PayPal as a fintech sector leader. Major recent developments encompass amplified collaboration with Coinbase targeting stablecoin solutions, a leadership push in agentic commerce, and the anticipated launch of the unified PayPal Open platform. Such advancements further diversify PayPal’s ecosystem—including popular brands like Braintree and Xoom, both of which have presence or partnerships affecting the digital payments ecosystem in South Africa—and address demand for secure, advanced digital financial solutions.

Analyst consensus remains moderately bullish, projecting upward potential for PayPal shares amid positive sector fundamentals and company-specific catalysts. The latest assessments from 90 professional analysts show 53 buy, 35 hold, and only 2 sell recommendations, with a median target price of $76.71, representing 8.1% upside. This sentiment reflects both the constructive market mood and expectations for sustainable growth driven by PayPal’s innovation roadmap, which is pertinent for ZA investors seeking exposure to resilient, growth-oriented international payment providers.

PayPal’s presence and brand acceptance remain strong within South Africa’s digital economy, complemented by partnerships and regulatory compliance that bolster its competitive position. PayPal is a principal payment method for many South African SMEs and consumers engaging in cross-border transactions, especially for international e-commerce, freelance work, and digital remittances. Its compliant integration with local partners—such as First National Bank (FNB) for fund withdrawals—ensures continued accessibility, trust, and relevance in the ZA market despite rising competition, reinforcing PYPL as a credible long-term play for regional investors and stakeholders.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.