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Introduction
Both PayPal (NASDAQ:PYPL) and Block (NSYE:SQ), two of the world’s leading fintech companies, have gotten off to a rough start in 2022. PayPal and Block are down 45% and 24% year to date, respectively, as tech stocks continue to face downward pressure resulting from rising interest rates and geopolitical concerns. The war on cash, which refers to a broader shift towards digital payments, has picked up serious momentum in recent years. PayPal’s management team suggests that the company has a total addressable market around $110 trillion. The industry is large enough to support several secular winners, and I believe both PayPal and Block are well-positioned to lead the industry moving forward. The companies are in different stages of growth and possess unique characteristics that investors should examine closely. In this article, we will explore the similarities and differences between PayPal and Block to help investors decide which stock is the better investment for them today. My choice? PayPal.
