The magic of Paypal

Investors will no doubt be familiar with the appeal of Paypal as a consumer. Nathan Bell, Head of Research at Peters MacGregor, says it offers some attractive attributes to investors too. Payments providers are not a new phenomena, with Amex, Visa and MasterCard all forming cornerstones of value investing portfolios for years, but Paypal offers something that the others have yet to match. “It’s been able to solve the fraudulent transactions problem, and that’s what no one else has really been able to solve.” Unlike other providers, Paypal is able to identify improper transactions to protect both the consumer and the banks from fraud. “If Paypal can maintain its market position then I think investors will do quite well.” Watch the video to hear his full thoughts.