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Google Pay App Increasing Success a Threat to Square (SQ) and PayPal (PYPL) - Piper Sandler

December 28, 2020 8:02 AM EST
Get Alerts SQ Hot Sheet
Price: $81.13 -5.11%

Rating Summary:
    40 Buy, 14 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 42 | New: 10
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Piper Sandler analyst Christopher Donat reiterated a Neutral rating on Square (NYSE: SQ) as well as an Outperform rating on PayPal (NASDAQ: PYPL) after reviewing the most recent month's top downloads of Apple's App Store and finding Alphabet's (NASDAQ: GOOG) Google Pay App appearing in the top 10 downloads, clearly presenting a threat to the incumbents. The analyst pointed out 5 key issues in the data:

1) The appearance of Google Pay in the Top 10 Finance apps on Apple's App Store is due to redesigned Alphabet's (NASDAQ: GOOGL) Google Pay app

2) We view Google Pay as a threat to PayPal and Square's Cash App

3) PayPal's new crypto offering likely is helping U.S. downloads

4) PYPL's non-US downloads are up 100%+ YoY

5) SQ's Cash App downloads continue to decelerate

The analyst stated "On Nov. 18, Google launched a new version of the Google Pay app in the United States. We view the new app as the driver of download activity and the reason Google Pay is the #5 Finance app in Apple’s App Store (it briefly held the #1 position last week). The redesigned app has new functionality for P2P payments, merchant loyalty programs, and syncing account data. We view the enhanced functionality of Google Pay as a competitive threat to PayPal and Square and will keep an eye on app download activity in coming months."

For an analyst ratings summary and ratings history on Square click here. For more ratings news on Square click here.

Shares of Square closed at $233.25 yesterday.



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