PayPal expands partnership with Adyen

On Tuesday, PayPal (NASDAQ:) announced an expansion of its global strategic partnership with Adyen, a financial technology platform, to introduce “Fastlane by PayPal” to Adyen’s enterprise and marketplace customers in the U.S.

The company said the partnership aims to enhance guest checkout experiences, with plans to expand globally.

“Fastlane by PayPal is a new guest checkout experience that helps shoppers convert more than 80% of the time while reducing time to check out by 32% compared to a traditional guest checkout,” said PayPal.

The service allows shoppers to save payment and shipping information during their first checkout, which is then automatically prefilled in future purchases across all merchants using Fastlane.

Alex Chriss, President and CEO of PayPal, highlighted Adyen’s enterprise relationships, making it an ideal partner for this initiative.

Chriss emphasized that this collaboration aligns with PayPal’s strategy to make its services ubiquitous in global commerce. Pieter van der Does, co-founder and co-CEO of Adyen, echoed this sentiment, noting that the partnership with PayPal would elevate the shopping experience for global enterprises and their customers.

Following the news, analysts at Mizuho said they see the partnership as a significant step for PayPal, potentially unlocking a $3 trillion total addressable market (TAM) in e-commerce.

Mizuho views the partnership as evidence of Fastlane’s strong product offering, given Adyen’s willingness to collaborate despite being a direct competitor to PayPal’s Braintree.

The analysts suggest that this unbundling strategy could lead to a $1.0-1.5 billion lift in transaction margin dollars for PayPal, driving broader adoption and reinforcing PayPal’s position as a comprehensive payments platform.

This development has positively impacted PayPal’s stock, which is up around 2.8% following the announcement.