How high is up? That’s a question regarding Adyen’s payments business bonanza as e-commerce sales growth continues unabated. The stay-at-home lifestyle favors online shopping which will reach record levels during this holiday season.
Even when more in-store shopping volume recovers sometime in 2021, the online travel business will once again take flight and provide more e-commerce payments transactions. Mercator discussed payments vendors including Adyen and others that make up the U.S. e-commerce market in a recent report Crowded Payment Gateway Landscape Offers Much To Online Merchants, Part 2: U.S. Market Company Profiles (report abstract found here).
The following excerpt from a Wall St. Journal article reports more on the topic:
Few companies have benefited more from the e-commerce shopping boom sparked by the pandemic than Dutch payments firm Adyen NV. The best-performing large stock in Europe this year, Adyen is up almost 120%, vaulting its market value to nearly $60 billion, bigger than some of the region’s top banks, including Swiss giant UBS Group AG.
Adyen’s stock performance has even outpaced PayPal Holdings Inc., another beneficiary of the move toward digital payments, which is up about 70%. Unlike PayPal, which hundreds of millions of consumers world-wide use to send money and make internet purchases, Adyen sits behind the scenes, providing the technology that merchants use to process credit card and other types of digital payments.
Analysts say that unlike some rivals that rely on in-store transactions for a big chunk of their business, almost 90% of Adyen’s transaction volumes come from online sales. That advantage has attracted investors to Adyen.
Online payments have held up better than in-store digital payments during the pandemic as people avoid crowds. More consumers are shopping online and more merchants are adopting digital-payment technology to service e-commerce as well as in-store purchases.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group