PayPal Holdings vs Visa: Business Model & Financial Comparison 2026
PayPal Holdings · Financial Services / Credit Services·Visa · Financial Services / Credit Services
Financial Comparison
| Metric | PYPLPayPal Holdings | VVisa |
|---|---|---|
| Market Cap | $43.95B | $611.88B |
| Revenue (TTM) | $33.17B | $41.39B |
| Revenue Growth | 3.7% | 14.6% |
| Gross Margin | 41.5% | 97.8% |
| Operating Margin | 17.5% | 68.3% |
| Net Margin | 15.8% | 50.2% |
| Return on Equity | 25.7% | 54.0% |
| P/E (Trailing) | 8.7x | 29.8x |
| P/E (Forward) | 8.1x | 21.8x |
| Free Cash Flow | $3.27B | $22.03B |
| Cash | $10.42B | $16.40B |
| Total Debt | $12.30B | $21.18B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
PayPal Holdings
PayPal Holdings, Inc. stands as a leading company in Financial Services. Generating $33.17 billion in annual revenue (growing 3.7% year-over-year) and carrying a market capitalization of $44.57 billion, the company has cemented its position as a foundational player in the global Credit Services landscape. Under the leadership of its leadership team, PayPal Holdings, Inc. continues to execute on a multi-year strategic vision that balances growth i…
Full PayPal Holdings analysis →Visa
Visa Inc. stands as a leading company in Financial Services. Generating $41.39 billion in annual revenue (growing 14.6% year-over-year) and carrying a market capitalization of $616.59 billion, the company has cemented its position as a foundational player in the global Credit Services landscape. Under the leadership of its leadership team, Visa Inc. continues to execute on a multi-year strategic vision that balances growth investment with shareho…
Full Visa analysis →SWOT Analysis Comparison
Strengths
PayPal Holdings
- PayPal Holdings, Inc.'s gross margin of 41.5% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 17.5% demonstrates
- A return on equity of 25.7% demonstrates that PayPal Holdings, Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- PayPal Holdings, Inc. generated $3.27B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Visa
- With a market capitalization of $616.59B, Visa Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that small
- Visa Inc.'s gross margin of 97.8% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 68.3% demonstrates disciplined
- Revenue grew 14.6% year-over-year to $41.39B, indicating strong demand for Visa Inc.'s products and services and outperformance relative to many industry peers.
Weaknesses
PayPal Holdings
- PayPal Holdings, Inc.'s debt-to-equity ratio of 60.7 indicates meaningful financial leverage. Total debt stands at $12.30B against $10.42B in cash and equivalents.
- Revenue growth of 3.7% is below what growth investors typically seek, suggesting market saturation in core businesses or increasing competitive pressure.
Visa
- Visa Inc.'s debt-to-equity ratio of 54.6 indicates meaningful financial leverage. Total debt stands at $21.18B against $16.40B in cash and equivalents.
Opportunities
PayPal Holdings
- PayPal Holdings, Inc. operates in the Credit Services segment of the broader Financial Services sector, which represents a $26.5 trillion global financial services market by 2028. Even modest share ga
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for PayPal
- Earnings growth of 39.4% YoY demonstrates PayPal Holdings, Inc.'s ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating leverage a
Visa
- Visa Inc. operates in the Credit Services segment of the broader Financial Services sector, which represents a $26.5 trillion global financial services market by 2028. Even modest share gains in this
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Visa In
- Earnings growth of 17.4% YoY demonstrates Visa Inc.'s ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating leverage as fixed cost
Threats
PayPal Holdings
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. PayPal Holdings, Inc.'s revenue is not fully insulated from macroeconomic cycles, and a rece
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on PayPal Holdings, In
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Visa
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Visa Inc.'s revenue is not fully insulated from macroeconomic cycles, and a recession scenar
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Visa Inc.'s busines
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolPayPal Holdings vs Visa: FAQ
- Is PayPal Holdings bigger than Visa?
- By market capitalization, Visa is larger at $611.88B vs PayPal Holdings's $43.95B.
- Which has better profit margins — PayPal Holdings or Visa?
- Visa has higher net profit margins (50.2%) compared to PayPal Holdings (15.8%). Gross and operating margins are compared in the table above.
- What sectors do PayPal Holdings and Visa operate in?
- PayPal Holdings operates in the Financial Services sector (Credit Services). Visa operates in the Financial Services sector (Credit Services).
- How does PayPal Holdings's revenue compare to Visa's?
- PayPal Holdings generates $33.17B in annual revenue (TTM) while Visa generates $41.39B. Visa is the larger company by revenue as of 2026.