PayPal's total payment volume rose 10% year over year in the second quarter to $486 billion, but weakness in its most profitable segment, online branded checkout, is weighing on the stock. Branded checkout TPV grew just 2% in the quarter and accounted for 28% of total TPV, down from 26% annualized growth between 2018 and 2021. Transaction margin dollars increased only 1% last quarter, reflecting the segment's struggles. CEO Enrique Lores said the company is raising its expectation for online branded checkout to the low-single-digit range for the year. Intense competition, notably from Apple Pay with an estimated 900 million global users, is likely a key factor pressuring the fintech stock, which trades down 81% from its 2021 peak.
Apple Inc.
Applovin CorpPayPal Holdings IncWeakness in branded checkout due to intense competition from Apple Pay pressures PayPal's stock.
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