PayPal's once-privileged competitive position is being undermined by fierce competition from Apple Pay, Stripe, Ayden and others. Google and Amazon are also keen to enter the sector, the latter with proven expertise in the field.

PayPal Checkout - which accounts for a third of consolidated sales - is the most exposed. However, the group remains a major player in the management of payment processes on behalf of third parties, such as Uber, Booking, eBay and Spotify; it is also developing its own "buy now, pay later" offer with some success.

PayPal still administers 23 billion transactions a year, for a volume of $1.4 trillion, on 200 markets, in 150 different currencies, and on behalf of 35 million merchants; we'd be more cautious with the 400 million "consumer" wallets it claims.

These volumes, its integrated infrastructure and its proven track record in terms of compliance and security are also undeniable assets. But will this be enough in the face of competition?

The market has its doubts. This is borne out by the valuation it now assigns to PayPal, which has fallen to fifteen times earnings, i.e. to its historic lows. A far, far cry from the hundred-times-earnings levels seen during the pandemic!

This comes despite a growth track record that's actually quite breathtaking. In ten years, PayPal has quintupled its sales and annual profit, while maintaining the same level of margins and profitability.

The company's profitability has been decent, but not mind-blowing - a reminder that its payment management business is no panacea either, as some people had forgotten.

The company's exceptional track record owes much to its previous CEO Dan Schulman, a true "empire builder" who made one acquisition after another. Nevertheless, the course is set to change, and the allocation of capital will henceforth focus on share buybacks as a priority.

If - and only if - PayPal preserves its market share, shareholders who return at these price levels should be pleased in the long term.