PayPal Holdings is Now Battling Square in a Race to Improve Digital Wallets with New Features

Urian B., Tech Times 21 December 2020, 11:12 pm

Two electronic payment players namely PayPal Holdings and Square are now clashing in a race towards improving digital wallet apps. The contest could have a major effect on both Square and PayPal stock for the upcoming year and beyond.

PayPal adds new features

Two of the most popular payment companies are now marketing apps that allow its users to shop and receive discounts, make installment payments, and even buy cryptocurrencies. Both of the companies are now competing within the digital wallet space against other tech giants like Apple, Amazon, and even Alphabet's Google. The competition also includes a number of other feisty financial tech startups.

According to the story reported by Investors, the head to head battle is mostly between Square and PayPal as well as their own respective Venmo as well as Cash App services that supposedly draws a lot of interest on Wall Street. The original feud started with PayPal's Venmo and Square's Cash App as the person-to-person money transfer service that caters to family members as well as friends. Currently, they've now been involved in a much broader consumer financial services apps that fuel growth in the field of digital payments.

PayPal VS Square

The Square Cash App reportedly surged ahead first with its new features which enabled users to be able to buy and sell the cryptocurrency Bitcoin. During the whole coronavirus crisis, Cash App has also been able to emerge as a digital alternative to the traditional banks as the users deposited certain government checks. As of September 30, Cash App customers reportedly had over $1.8 billion in cash balances all stored inside their accounts. This was up by 180% from just a year earlier.

Square also reportedly launched a new Cash-App-branded clothing line just recently. This allows Cash App users to be able to buy sweatshirts, T-shirts, hoodies, and even other apparel at a whopping 25% discount. With the new clothing line, analysts stated that Square looks like it is testing its own interesting closed-loop, electronic platform.

Is Square or PayPal better?

As 2021 approaches, it was reported that PayPal could still move ahead of the company Square in the whole digital wallet race. This could potentially lift the stock prices and value of PayPal itself. PayPal currently plans to revamp its known app, the Venmo mobile app for the smartphones. PayPal is also planning to revamp its popular PayPal app. This is said to come with a digital wallet redesign later on this 2021.

PayPal is also planning to add a new Bitcoin trading platform and in addition, PayPal aims to be able to integrate the known services of the Honey Sciences that it acquired for a whopping $4 billion back in 2019. The known Honey consumer shopping app, as an example, offers both coupons as well as a good reward program. The MoffettNathanson analyst known as Lisa Ellis even stated that with the new wallet redesign, PayPal will eventually become a more full-service in comparison to Cash App. The comparison between PayPal and square has been done by websites like MerchantMaverick and more.