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Adyen, Braintree and Stripe face off

Payments Dive

As the digital payments race to land and retain merchant clients intensifies worldwide, PayPal’s Braintree appears to be at least holding its own against European rivals Adyen and Stripe.

It may even be thwarting Adyen’s growth in its home market, or taking share from the rival, according to one analyst group that surveyed recent earnings from Braintree and the Dutch company. Adyen provides payment services that allow merchants around the world to process payments online or in-person. PayPal and Stripe provide similar processing services.

“It’s a fairly competitive space and I think the competition is only intensifying,” Mizuho Securities Senior Associate Ryan Coyne said in an interview this week. “If competition is going to continue to increase, I think PayPal is in a good position to set the price, and could drive some gains.”

Adyen is about the same size as privately-held Stripe, based on publicly available information regarding their payments volume. Both are approximately twice the size of Braintree, a Chicago-based business purchased by PayPal a decade ago.

After Adyen reported a slowdown in its growth last week for the first half of the year, the value of the company dropped by nearly 40%, the equivalent of about $20 billion. Its efforts to expand in North America, where it has encountered stiff competition from Braintree, contributed to the troubles.

“Braintree’s aggressive land-grab strategy in the US proved successful amid Adyen 1H23 results,” Mizuho Securities analysts said in an Aug. 18 report commenting on those results. “It likely contributed to the sharp deceleration in Adyen’s North America revenue growth.”

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