Buy PayPal shares - how to invest in PayPal shares in South Africa

How to buy PayPal shares 

PayPal is the largest electronic payment system in the world. This fintech giant was founded in the United States in 1998. Today, it has more than 200 million customers worldwide.

PayPal Holdings Inc. works with over 100 different world currencies. About 90% of all e-commerce companies make payments via this service.

PayPal can be compared to a regular wallet where funds and credit cards are stored. Like wallet owners, registered users of the digital service can use a credit or debit card or other types of accounts. All money is kept on the client's balance, and it can be used for payments for various goods and services.

Using an electronic wallet, a person can send a money transfer to friends and acquaintances. Besides, there is the possibility of contactless payment through the terminal in most stores. Absolutely all payments are made through their own system, which is called Payflow.

Some money transfers do not include commission charges. Additional fees apply only in cases where a transnational payment or currency conversion transaction is made. The company earns very little on ordinary money transfers, and the main source of income is considered to be the maintenance of offline stores. Sellers who use the payment system are required to pay large commissions.

The company went public in February 2002. At the IPO, the price of a share was $ 13, and the initial sale of securities brought over $ 61 million. Since that time, the price of PayPal securities has grown more than 10 times, which brought early investors more than 1000% profit. In 2020, the capitalization of the company reached $231 billion.

How to buy PayPal shares
How to buy PayPal shares

How to invest in PayPal shares 

All transactions with securities are legally regulated by law. Special authorities keep records and control all transactions. The main participants in the purchase and sale: 

  •         Stock exchange. These platforms fully organize trading activity;
  •         Broker. It allows individuals to participate in trades;
  •         Depository. It controls the accounting of ownership of securities.

To start buying and selling, you just need to choose a sensible broker, open an account, replenish your account with the minimum deposit and order the shares.

Even several shares make it possible to earn, for example, due to fluctuations in the prices of securities and exchange rates. But it is vital for a novice investor to understand that trading stocks is not associated with immediate profits. You need to be ready to wait at least six months or even several years.

However, you can invest in PayPal shares in a different way. Most brokers allow trading using derivative financial instruments such as CFDs, options. In this case, you do not become a shareholder but only trade contracts with shares as the underlying asset.

Paypal trading conditions
Paypal trading conditions

PayPal shares Investment Platform 

PayPal shares are actively bought and sold on the American NASDAQ platform, where they can be found under the ticker PYPL. Today, this stock exchange is considered the main trading floor for the issuer's securities.

You can also buy or sell shares on the Frankfurt, Berlin, Hamburg, Munich, Dusseldorf, Stuttgart, Mexican, Swiss and other exchanges.

Paypal investment platform
Paypal investment platform

How to start investing in PayPal shares 

To carry out operations with financial instruments on commodity and stock exchanges, you will need a broker. Online brokers that provide intermediary services in the Forex and stock markets.

How to start investing in PayPal shares?
How to start investing in PayPal shares?

How to register 

Registration requires only email address, user name and password. These details will be fine if you are looking only for access to a training account. When you pass to real money trading, you need to go through the verification procedure to be able to transfer your income to your account. For this, you will need to prove your identity via copies of official documents.

Registration on a trading platform
Registration on a trading platform

How to open a demo account 

A demo account is automatically available to everyone upon registration. Some brokers have limitless training accounts, while others may allow you to use it only for a month.

How to open a demo or a real account 

To activate a real account, you need to invest the minimum sum asked by the platform. Usually, you may start trading with very small investments.

Название : How to open a demo or a real account

How to open a demo or a real account
How to open a demo or a real account

How to fund a deposit 

The three main payment options are a bank transfer, a credit card, and electronic payments. Most brokers support almost all popular e-wallets to make trading available worldwide.

Minimum deposit amount 

A beginner should focus on the platforms allowing trading with low investments. You will find a lot of companies that give you access to the trading platform for only $10.

Deposit replenishment
Deposit replenishment

How to withdraw money 

The channels allowed for deposit usually work for withdrawals too. Just note that some brokers may ask you to withdraw profit via the same method used to make a deposit. 

Security of PayPal share Investments 

Despite the high level of uncertainty in the global economy, the corporation has demonstrated the robustness of its business model. It showed growing operational and financial metrics in each reporting period. 

At the end of the third quarter of 2020, more than 361 million active accounts were opened with PayPal, and the number of transactions carried out through the payment system reached 4.0 billion. The total volume of transactions is more than $ 247 billion. The company's net revenue in the third quarter of 2020 grew by 25% and made $ 5.46 billion, which is the best result in the entire history of PayPal as a public company. 

In 2020, the corporation added a wide range of services. It now offers the ability to buy, sell and store cryptocurrencies and also introduced a new feature called “Buy now, pay later” for customers from the US and the UK.  This feature allows you to make purchases in the short term and interest-free installments. 

Information about Paypal shares
Information about Paypal shares

How safe is it to invest in PayPal shares 

Analyzing the fundamental factors, stock speculators can draw a certain conclusion about the prospects of PayPal shares. The forecast should take into account the current economic situation and the opinion of leading analysts. 

Experts name several positive aspects that can contribute to the growth of PayPal shares: 

  •         The financial situation of the company is stable. It has been working effectively for many years and has shown great results.
  •         Share quotes are always in line with the professional forecasts and even above this level.
  •         The corporation demonstrates positive dynamics of financial indicators.
  •         The business model is constantly evolving, thereby attracting new customers and retaining active users. It acquires third party services and provides additional functions.
  •         Recently, the service opened access to digital currencies. Crypto coins are becoming a driving factor for the continued technical development of the company.
  •         Unlike many global brands, PayPal has hardly been affected by the coronavirus pandemic. After the introduction of quarantine, people began to actively use digital payment services because paper transactions were considered more dangerous. 
Paypal earnings calendar
Paypal earnings calendar

Is it safe to invest in PayPal shares online 

To buy shares, you need a broker. It is an intermediary between the seller and the buyer on the stock exchange. A brokerage company becomes a permanent representative of the investor on the stock exchange.

 The functions of a broker do not necessarily have to be performed by a person. Investors, even large ones, often use online brokerage platforms, through which the share purchase agreement is concluded automatically, with one click.

These platforms allow you to become a shareholder from any location on the planet. You can register on a broker’s site with even $ 10. 

It looks like this: a person registers, fills out documents, replenishes a broker's account and selects a company from a list, for example PayPal. 

How to safely invest in PayPal shares online 

The main task of a trader is to find a reliable broker. It is worth paying attention to a few points.

 1. Regulation

A license obtained from reputable regulators is one of the main signs of the broker's reliability. The license is not issued to everyone as the registration criteria are quite strict - so if the broker has this important document, you can deal with it.

2. Experience

Intermediary experience in the market is another criterion to be taken into account. The longer the company works, the more reliable it usually is. Try to focus on the brokers that have been operating for at least 5 years.

3. Trading instruments.

Reputable platforms offer trading in more than 50 assets (commodities, company stocks, currency pairs, stock indices), offering to act in different ways: long-term and short-term transactions, providing leverage, and so on. The more assets a trader is offered, the higher is the probability that he will be able to find the best trading option for himself and focus on what works best for him.

 5. Reputation

If a broker has a bad reputation, then this information is surely available on the Internet. Thematic forums, ratings, blacklists - you should go everywhere if you have the slightest doubt. You should also note that prestigious awards and high ratings do not always mean the broker is perfect. You should test the company yourself with small investments. 

6. Commissions and fees.

 You cannot avoid additional expenses when cooperating with a brokerage company. And you need to check if there are no hidden fees. To do this, you may contact the technical support team and ask what you have to pay for, for example, for opening an account and making transactions.

My investments in PayPal shares are protected 

Everyone can buy shares and become an investor today. The key task for a beginner is to choose the best investment object for himself. If a person is just starting to get acquainted with the stock and financial market, he is likely to pay attention to the securities of world-famous corporations. But this market is attractive because, in addition to such an obvious choice, it offers investors many alternatives that can bring variable income. There are no universal solutions that can suit absolutely everyone, especially since each person pursues his own goals and selects a strategy that is close to himself. While some are able to take risks in order to achieve an immediate result, others will choose a cautious approach that will bring a small, but almost guaranteed amount of profit. With this calculation, someone will decide to invest in a young company with unlimited potential, while someone will invest in a reliable corporation that has been showing excellent financial results for years.

 FAQ:

Can you buy PayPal shares?

Everyone can officially become a PayPal shareholder. And the procedure is not difficult at all. You need to find an intermediary to get access to the stock market. This role belongs to online brokerage companies. After you select a platform, you need to register there and create a brokerage account. And then, you will have access to all trading options, including the purchase of shares.

The price of PayPal shares is growing. PayPal continuously introduces new payment methods and financial products. PayPal promotions are suitable for medium to long term investments. They are also suitable for active trading as their volatility is ideal for it.

PayPal shares are actively bought and sold on the American NASDAQ platform, where they can be found under the ticker PYPL. Today, this stock exchange is considered the main trading place for the issuer's securities. Individuals do not have direct access to stock exchanges, and they need an agreement with online brokerage company to purchase or trade shares.

Currently, one PayPal share is about $ 246.

Yes, you can buy as many shares as you wish, even one.

The company is interested in the development of high technologies and the introduction of new financial products. Therefore, it does not support dividend yield payments at the moment. Thus, the only option for making money is the purchase and sale of shares.

To buy shares in South Africa, you need a broker. It is an intermediary between the seller and the buyer on the stock exchange. A brokerage company allows an individual to become a full-fledged participant of the financial and stock markets.

In 2020 PayPal showed the best result in the entire history of the company, surpassing analysts' estimates: revenue of $ 5.26 billion against a forecast of $ 4.99 billion. Obviously, PayPal has become one of the clear winners of the pandemic due to the accelerated demand for e-commerce and electronic payments.

At the end of 2020, the company shares lost nearly 6% of their market valuation. PayPal announced a decline in profit growth in the fourth quarter of the 2020 year to 17-18% against the previous forecast of 25%.

During the pandemic, PayPal Shares have gained 73.7% as people were using digital payments more actively.

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