How to Buy PayPal Stock

Invest in PayPal stock today with Interactive Brokers as your trusted online brokerage.

Curious about how to buy PayPal stock (PYPL)? They boast millions of users and own the popular Venmo app. This guide will walk you through everything you need to know, from choosing a broker to making your first purchase. Let's get started on your journey to becoming a PayPal shareholder!

How to Buy PayPal Holdings Inc. (PYPL) Stock

Investing doesn’t need to be complicated, expensive or only for people who can watch market news all day. Here’s how you can start your investing journey in just 4 simple steps.  

1. Pick a Brokerage

Before you can buy stocks and funds, you’ll usually need to open an account with a broker. A broker is a financial service company that provides retail investors with access to a trading platform they can use to buy and sell securities. When you decide to buy or sell a share of stock like PYPL, you’ll place an order through your broker’s platform, which your broker will then execute on your behalf.

Different brokers cater to different audiences, classes of traders, types of investments and more. Some of the factors you might want to consider when you decide which broker you might want to work with might include:

• Minimum account balances. Some brokers require minimum initial deposits to open an account — and if you don’t maintain your broker’s minimum balance, you might be subject to maintenance fees or other penalties. If you don’t have much money to invest right now, search for a broker that offers a $0 minimum when opening an account.
• Commissions. Though it’s now possible to invest without paying anything in commission, you shouldn’t assume that all brokers have axed all of their fees. Be sure you understand all of the account maintenance fees and commissions your broker charges before you open an account. Note that commissions often vary between broker platforms and assets.
• Type of platform. If you’re a new investor or you’ve never traded stocks actively before, you may want to choose a broker that focuses on providing a simple and easily navigable platform. If you have experience trading or you’re already familiar with how to buy stocks, we recommend working with a broker that offers extended operating hours and a wider selection of platform tools.
• Access to additional markets. Virtually every broker offering access to customers in the United States will allow you to buy PayPal stock. However, some brokers have taken market access a step further, allowing you to buy and sell options, cryptocurrencies, futures contracts, and other types of securities with a single account. If access to these markets is important to you, you may want to consider searching for a broker that provides you with a single place to buy and sell all the investments you’re interested in.

2. Decide How Many Shares You Want

Next, you’ll need to decide how many shares of PayPal stock you want to buy. Take a look at the current market price of PYPL and monitor how it’s changing over time. Remember that if you can’t afford a full share of PYPL, your broker will likely allow you to invest in fractional shares. 

3. Choose Your Order Type

After you decide how many shares of stock you want to buy, you need to decide which type of order you want to use. Your order type tells your broker when you’d like your order to be executed and the price you’re willing to pay for each share of stock you buy. Some of the most common types of orders your broker might provide can include:

• Market buy. A market buy tells your broker that you want to buy a set number of shares of stock at the current market rate. The price you’ll pay per share may vary above or below the price you see on your trading platform as the market fluctuates.
• Limit buy. A limit buy tells your broker that you want to buy a set number of shares of stock at or below a “limit” price that you choose. For example, if you set a limit order to buy PYPL at a price of $250, your broker would only execute the order if it was possible to invest in PYPL at this price or below.
• Stop order. A stop order tells your broker that you want to buy a set number of shares of stock only if the price of the stock rises above a certain level. For example, if PYPL is trading at a price of $250 a share, you might set a stop order with a stop price of $270. If the price of PYPL reaches $270, your order will be converted to a market order and executed.

4. Execute Your Trade

Double-check that the details on your order are correct, then submit your order to your broker to execute. If the broker is able to execute your order according to your instructions, you’ll see the shares of stock in your investment portfolio. If the broker cannot execute your order, it may expire at the end of the trading day.

PayPal Stock History

PayPal Holdings Inc. is an online payment processing company best known for providing a nearly ubiquitous online money transfer system for retail clients. The majority of PayPal’s business comes from processing online transactions, as it charges a small fee on merchants when they authorize payments through PayPal’s payment processing system.

PayPal had its initial public offering (IPO) in February 2002. Later that same year, the company was acquired by online auction giant eBay with a total company valuation of $1.5 billion. The company has maintained a steady increase in share price since the onset of the COVID-19 pandemic with share prices doubling in value since March 2020. 

With 427 million active accounts by early 2024, the company is a major player in online payments. They also own Venmo, a popular person-to-person payment app.

PayPal stock chart as of 8/27/24. Source: TradingView

Pros of Buying PYPL

Investing in PayPal stock presents several advantages that are worth considering if you're looking to capitalize on the growing digital payment industry.

• Large and growing user base: Boasting 427 million active accounts as of early 2024, PayPal has a significant presence in the online payments market. This large user base translates to the potential for continued transaction growth.
• Venmo integration: Owning Venmo, a popular person-to-person payment app, strengthens PayPal's position in mobile payments and captures a younger demographic.
• Potential for growth: E-commerce is still growing, and PayPal is well-positioned to benefit from this trend. Additionally, recent deals with Visa and Mastercard could expand their reach.
• Undervalued stock: Some analysts believe the current stock price might be lower than its true value, presenting a potential buying opportunity.

Cons of Buying PYPL

While investing in PayPal stock can seem attractive, it is essential to consider the potential downsides and risks associated with such a decision.

• Increased competition: The digital payments space is crowded with players like Apple Pay, Google Pay, and regional competitors. Standing out and maintaining market share can be challenging.
• Slowing growth: While the user base is large, growth might be decelerating compared to pre-pandemic levels. This could impact future profitability.
• Macroeconomic headwinds: Rising interest rates and inflation could dampen consumer spending, potentially affecting transaction volume on PayPal's platform.
• Dependence on online sales: PayPal relies heavily on e-commerce growth. A shift back to brick-and-mortar retail could negatively impact their business.
• Lower margins on credit transactions: New partnerships with credit card companies might increase transaction volume but could come with lower margins compared to their core ACH business.

Invest in PayPal

Though PayPal has a long history of profitable returns for investors, it’s important to remember that the share price of any stock is never guaranteed to increase. Use PayPal to supplement a fully diversified portfolio, and never use a single stock as a replacement for retirement savings or other long-term investments.  

Frequently Asked Questions