Only one looks like the best bet on the payments space this year, according to two analysts. Adyen's business is much more geographically diversified than Square's. Of … Adam has been writing for The Motley Fool since 2012 covering consumer goods and technology companies. Those strengths offset the softer growth of its core transaction-based revenue, which rose just 7% as many small to medium-sized businesses temporarily closed in the first half of the year. Square, Inc. NYSE: SQ The fintech company bought 4,709 bitcoins in early October. Adyen's main app doesn't provide direct peer-to-peer payments, and it doesn't plan to offer bitcoin purchases or integrated stock trades anytime soon. Its Amsterdam-listed shares now trade at nearly 1,900 euros ($2,240), valuing the company at more than 57 billion euros ($67 billion). The market reaction to the results diverged sharply—PayPal shares gained momentum while Square’s stock slipped yet again. PayPal plans a revamp of the Venmo mobile app for smartphones and the PayPal app. If you are an individual looking for low, reliable rates, PayPal is a good choice. Second, Square provides a wider range of seller services for analytics, payroll management, and other tasks. It attributed most of that growth to the expansion of its Cash App, which ended the year with 36 million active customers (up 50% from a year ago), and soaring sales of bitcoin on the platform. PayPal Commerce: Formerly known as PayPal for Partners, the PayPal Commerce Platform is a payments solution for marketplaces, crowdfunding platforms, and other platforms for merchants and fundraising teams. Deposit and Withdrawal Methods –Coinbase offers additional payment methods, including PayPal withdrawals and credit card deposits.. Beginner Friendliness – Considering the company’s goals with these two platforms, it should come as no surprise that Coinbase is the more beginner friendly option.. Coinbase vs Coinbase Pro Fees – Coinbase Pro shines when it comes to … All content is original and has been researched and produced by ARK unless otherwise stated. If Square can get more merchants and customers used to the idea of using Cash App to pay businesses, there's potential for Square to bring the same concept into brick-and-mortar stores. ET on Motley Fool PayPal Just Gave Users Another Reason to Buy Bitcoin But, even without a dedicated accountant operating it, a QuickBooks Pro … Square and PayPal are in a neck and neck race to the top of the ever-growing person-to-person and mobile app segment of digital payments. ET on Motley Fool PayPal Just Gave Users Another Reason to Buy Bitcoin Disclaimer: Flux Technologies. First, Square serves consumers with its Cash App, which provides peer-to-peer payments, bitcoin (CRYPTO:BTC) trades, and free stock trades. A big advantage PayPal has over start-ups is that it's already developed a massive network of both merchants and customers, and both groups trust PayPal with their payment information. The article has been updated. Square’s $50 million investment in bitcoin paid off so well that it is already paying dividends. Its adjusted EBITDA increased 27% to 402.5 million euros ($474.4 million). Using the Cash App instead of processing a payment card allows Square to bypass the payment networks, saving nearly all of its costs of processing payments. There's a real opportunity to connect the two ecosystems. Square rose as much as 3.7%, its biggest gain since Dec. 16. Simply put, Square is a more diversified fintech play, while Adyen resembles a smaller version of PayPal (NASDAQ:PYPL). The current per-customer acquisition cost for Cash App is less than $5, management said. And we're showing that off a little bit with Cash by Cash App, but there's a lot more to come," Dorsey said on the fourth-quarter call. As of the end of 2020, PayPal counted nearly 350 million active consumer accounts. He spends about as much time thinking about Facebook and Twitter's businesses as he does using their products. ©2021, ARK Investment Management LLC (“ARK” ® ”ARK Invest”). Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. PayPal’s in-person transaction fees are slightly lower and have the benefit of accepting PayPal payments. While Square doesn’t offer a discounted processing fee for nonprofits, its 2.6% + $0.10 per-transaction rate for swiped, dipped, and tapped payments through the Square point of sale app is extremely competitive and cheaper than PayPal’s in-person processing fees (Square’s online processing fee is 2.9% + $0.30). Together with PayPal, Visa and Mastercard look virtually unassailable in the digital-payments market. Square (NYSE:SQ) is often a top stock for fintech investors. Cash App can serve as a one-stop shop for many of your financial needs. Any business can use Square Point of Sale to accept and process payments. Square’s $50 million investment in bitcoin paid off so well that it is already paying dividends. Motley Fool. Adyen mainly focuses on processing payments instead of selling add-on business services. That conservative approach, along with its lower travel and operating expenses throughout the pandemic, enabled Adyen to grow its full-year earnings 11%. Open an interest account with up to 8.6% APY, trade currencies, or borrow money without selling your assets. If You Already Have a Merchant Account If you are looking for stocks with good return, Square Inc - Class A can be a profitable investment option. Square Inc - Class A quote is equal to 234.700 USD at 2021-04-01. Stocks. Adyen's revenue rose 28% to 684.2 million euros ($806.4 million) in fiscal 2020 as the shift to online sales throughout the pandemic offset its loss of brick-and-mortar POS payments. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. While PayPal is a new ecommerce company of similar vintage to Amazon, Walgreen’s is an old-world, century old stalwart. It also comes with real-time analytics and sales reporting, Square Dashboard, inventory management, customer relationship management, employee management, payroll, and invoicing. Looking ahead to mid-2021, though, PayPal could move ahead of Square in the digital wallet race, lifting PayPal stock. Adyen helps merchants issue their own virtual cards, which are basically branded mobile wallets for single businesses. Wix vs GoDaddy is a clash of two brilliant, cheap website builders. No, this financial services and digital payments company isn't suddenly pivoting into the apparel business. Square also issues physical debit cards that are linked to users' Cash accounts. Analysts expect Adyen's revenue and earnings to grow 39% and 62%, respectively, this year, as the pandemic passes, its brick-and-mortar businesses recover, and it reins in eBay's remaining customers. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Analysts expect Square's revenue and adjusted earnings to both increase 45% this year as the pandemic passes and restores the balance between its bitcoin and transaction-based businesses. Increasing that and re-engaging the 50 million Cash App users not actively using the service could go a long way toward catching up with PayPal. For any trading strategy on our site, hypothetical results are based on the assumption that you invested the starting amount shown on the strategy’s performance chart. In case you missed it, Square (NYSE:SQ) in December launched a streetwear collection based on its Cash App brand. Y ear-to-date, Paypal’s [PYPL] share price is up 88.5% and Square’s [SQ] share price has soared a whopping 175.9% as of 22 October’s close. Long runway for future success operating it, Square sells first-party POS systems that either run on devices! 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