PayPal SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of PayPal analyses the brand by its strengths, weaknesses, opportunities & threats. In PayPal SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like PayPal to benchmark its business & performance as compared to the competitors. PayPal is one of the leading brands in the banking & financial services sector.

The article below lists the PayPal SWOT (Strengths, Weaknesses, Opportunities, Threats), top PayPal competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

About PayPal

PayPal Overview
Parent Company

eBay

Category

Online payment Company, Ecommerce Finance

Sector

Banking & Financial Services

Tagline/ Slogan

The safer way to pay online

USP

Largest market Share

PayPal STP
Segmentation

Online Payment processing

Target Market

Online consumers looking for financial solutions

Positioning

Ecommerce and financial solutions

SWOT Analysis of PayPal

For PayPal, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the PayPal SWOT Analysis:

PayPal Strengths

The strengths of PayPal looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of PayPal :

1. Highly secured online Infrastructure

2. Available in 24 currencies worldwide
3. Spread over 190 markets all over the world
4. More than 153 million online accounts
5. PayPal presents anti-phishing advice on their website[72] for identifying and reporting phishing.

PayPal Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the PayPal SWOT Analysis:

1.  High exposure to risk and frauds

2. Paypal has faced controversies regarding payment transactions

3. Not to popular in emerging economies where people are conservative for online payments
4. Local restrictions in countries like China, Japan, Taiwan, Brazil, India


PayPal Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in PayPal SWOT Analysis:

1.  Cashless economies
2.  Digital currency

3. Upcoming ecommerce markets


PayPal Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of PayPal are as mentioned:

1.  Stringent economic policies world over
2.  Highly  competitive environment

3. Hacking and fraud threats

PayPal Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of PayPal:

1.  Google Checkout
2. Moneybookers
3. Wirecard


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to PayPal. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.

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The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. The companies are not associated with MBA Skool in any way.
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