PYPL - PayPal stock rises after analysts see Paidy acquisition as a 'solid' move in BNPL

PayPal (NASDAQ:PYPL) stock gains 1.7% in premarket trading after the fintech agreed late Tuesday to acquire Japan's Paidy for $2.7B, bolstering its "Buy Now, Pay Later" business. The move shows just how important the BNPL space has become for payment companies, following Square's agreement last month to buy Australia's Afterpay (OTCPK:AFTPF) for $29B in stock. Square (NYSE:SQ) stock falls 0.3% in premarket trading. The other major publicly held BNPL player Affirm Holdlngs (NASDAQ:AFRM) gains 0.8%. Citi analyst Ashwin Shirvaikar calls the PayPal acquisition a "solid strategic move." BNPL is important "both as a low-friction payment choice and a stepping-stone to 2-sided payment platform growth," the analyst writes in a note to clients. Shirvaikar also said the deal's valuation appears to be in line with recent BNPL transactions, based on gross merchandise volume and user base. Mizuho Securities' Dan Dolev is "very upbeat" and sees the potential for growth as ~70% of all purchases in

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PayPal stock rises after analysts see Paidy acquisition as a 'solid' move in BNPL