PayPay initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of PayPay (PAYP) with a Buy rating and $29 price target The firm views the company as a top-performing fintech within its coverage, given its leading position in Japan’s QR code payments with 65% share as of 2024, scalable model and expansion to credit cards/financial services, which have resulted in 20% CAGR growth and higher profit margins in recent years, the analyst tells investors in a research note. PayPay is underpenetrated on financial services, but stands out from other fintech/payments peers with fast deposit growth and some 18% contribution to net revenue, where others have taken a slower, organic approach, Goldman Sachs added.