Raynor de Best
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PayPal adoption in 2022 was high in countries like Germany, the United Kingdom, Australia, and Austria, according to figures from Statista's Global Consumer Survey. The number and share of merchants who offer PayPal as a payment option on their e-commerce website reinforce this observation further: Nearly 35 percent of all German domains had a PayPal plugin as opposed to eight percent of all U.S. web domains. The difference likely stems from the different payment brands available in the United States, as domestic brands Venmo and Zelle compete for user attention against PayPal. For Europe, PayPal generally takes up two positions: On the one hand, it is a country's main online payment method available due to the lack of a local alternative - like in Germany. On the other hand, PayPal may compete against a locally developed option that rolled out nationwide before PayPal arrived - like iDEAL in the Netherlands.PayPal's future depends on the macroeconomy
PayPal's recent financial performances led to a decline in the fintech's stock in 2022, which was more severe than the S&P 500. Chief Financial Officer Gabrielle Rabinovitch admitted on the Q3 2022 earnings call that "We are operating in an environment where (...) real wage growth is going to continue to be negative for a period of time, where discretionary spend will be under pressure." There is some encouragement for PayPal, however. The United States inflation rose 7.7 percent in October 2022, an increase lower than expected and a potential sign of Federal Reserve policies kicking into gear. Forecasts also indicate there is still room to grow for e-commerce shopping within overall retail sales in the U.S.
