PayPal Holdings (MIC:PYPL-RM) Moat Score : 7/10 (As of Jul. 23, 2025)

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What is PayPal Holdings Moat Score?

PayPal Holdings has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

PayPal Holdings has Wide Moat: PayPal benefits from strong network effects and significant customer switching costs due to its large user base and integration with numerous merchants. Its brand strength and global reach provide durable cost advantages. The company's consistent innovation in digital payments further solidifies its position, justifying a wide moat classification.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes PayPal Holdings might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Competitive Comparison of PayPal Holdings's Moat Score

For the Credit Services subindustry, PayPal Holdings's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PayPal Holdings's Moat Score Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PayPal Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Moat Score falls into.

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PayPal Holdings (MIC:PYPL-RM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score	Moat Level
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

PayPal Holdings Moat Score Related Terms

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PayPal Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » PayPal Holdings Inc (MIC:PYPL-RM) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

PYPL:USA PYPL:Peru PYPL:Mexico PYPL_KZ:Kazakhstan 1PYPL:Italy 2PPd:UK 0R9U:UK 2PP0:Germany 2PP:Germany 2PP:Germany 2PP:Germany 2PP:Germany PYPL:Canada PYPL34:Brazil PYPL:Austria PYPL:Argentina

Address

2211 North First Street, San Jose, CA, USA, 95131

Website

https://www.paypal.com

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 434 million active accounts at the end of 2024. The company also owns Venmo, a person-to-person payment platform.

PayPal Holdings Headlines

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