A senior Mizuho analyst has maintained an outperform rating for PayPal’s stock following the company’s announcement that Dutch payments firm Adyen will offer Fastlane, a popular checkout tool provided by PayPal, to its enterprise and marketplace customers in the U.S.
Dan Dolev, a senior analyst in fintech equity research at Mizuho Securities USA, emphasized in an August 20 research note that the strength of the Fastlane product is evident given Adyen’s willingness—despite being a direct competitor to PayPal’s Braintree—to partner with PayPal. Dolev has previously highlighted that Fastlane’s total addressable market could be as large as $3 trillion, with $1.43 trillion realistically addressable.
News of the partnership led PayPal’s stock to close at $71.89 on Tuesday, its highest closing price. On Wednesday, shares ended slightly lower at $71.46.
Dolev also speculated that PayPal might follow Stripe’s recent strategy shift by unbundling its payment services from its broader financial offerings, potentially driving wider adoption of Fastlane. He reiterated his Outperform rating for PayPal and set a price target of $90.
Fastlane, launched by PayPal in early August, simplifies the guest checkout process by saving consumers’ credit card information and shipping addresses for future purchases, making online shopping quicker and easier.
PayPal and Adyen have partnered for several years, and this expansion allows Adyen to offer Fastlane to its U.S. enterprise and marketplace customers, enhancing the speed of guest checkouts.