PayPal Holdings, Inc. operates one of the largest online payments system and digital payments platforms globally Highly scalable business model Strong growth prospects in online and digital payments Narrow product focus (payment processing), that is, limited diversification Lagging the initial wave of mobile payment processing Strong cash flow generator No leverage Below-average operating margin (compared with other financial market infrastructure companies) Main risk is its growing exposure to retail credit through PayPal Credit Diversified portfolio of retail loans Highly automated scorecard-based underwriting and monitoring of credit exposures The stable outlook reflects Standard&Poor's Ratings Services' expectation that PayPal Holdings, Inc. will continue to benefit from low-to-mid-teen growth in its payment volumes and will keep expanding its unsecured lending to
