COIN vs. PYPL: Which Crypto Payments Stock is the Better Option Now?

Retail access to cryptocurrencies is steadily improving as platforms streamline onboarding, optimize user experiences and align more closely with regulatory standards. Fintech firms and exchanges are increasingly integrating crypto wallets and trading capabilities within their apps, simplifying digital asset management for everyday users. In this context, let’s find out which of these two companies is better poised, Coinbase Global Inc. COIN or PayPal Holdings, Inc. PYPL.

Stablecoins, which bridge the gap between traditional finance and the crypto space, are gaining importance in shaping the digital financial system. In fact, major banks are also exploring their own stablecoin initiatives.  With tokenization, stablecoins and DeFi, retail users are set to gain access to a wider array of user-friendly and functional crypto services beyond basic trading.

Yet, cyber threats remain a challenge.
 
But as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.

Factors to Consider for COIN

Coinbase, the largest registered crypto exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset prices. The company is also set to benefit from President Trump’s favorable stance on cryptocurrency and his push for regulatory clarity. With 83% of its revenues coming from the United States, Coinbase is strongly aligned with a domestic market that is increasingly viewed as a future global leader in crypto innovation.

In 2024, the company more than doubled its total revenues and recorded its second straight year of positive adjusted EBITDA. This growth was largely driven by increased transaction revenues from higher trading volumes and expanded market share in the United States. Coinbase is also prioritizing real-world crypto adoption through key infrastructure investments such as Base — a cost-efficient Layer 2 scaling solution — and a growing focus on stablecoins. These moves reinforce its strategic vision to serve as the primary platform for businesses integrating digital assets.

From a financial perspective, Coinbase remains strong, closing 2024 with $9.3 billion in USD resources, including cash, cash equivalents, and USDC, up $3.8 billion year over year. The company has also lowered its debt load, with healthier debt-to-capital and interest coverage ratios signaling solid financial management and repayment capacity.

Nevertheless, rising transaction and operating expenses continue to put pressure on profit margins. It also remains highly exposed to volatility in the value of major cryptocurrencies such as Bitcoin and Ethereum. A significant price drop could hurt earnings, reduce the value of crypto held on the balance sheet, and constrain future cash flows, potentially straining liquidity and the ability to meet ongoing obligations.

Factors to Consider for PayPal

Paypal has emerged as one of the largest online payment solution providers, backed by its strong product portfolio and two-sided platform. This enables it to offer a smooth and secure transaction facility to both customers and merchants.

Primarily recognized as a digital payments giant, PayPal also offers retail users the ability to buy, sell, and hold leading cryptocurrencies such as Bitcoin and Ethereum. By entering the crypto space, PayPal has established itself as one of the most user-friendly and mainstream entry points into digital assets, leveraging the strength and trust of its established payments network.

PayPal is actively positioning its stablecoin, PayPal USD (PYUSD), as a core engine of growth. Since its debut in August 2023, the company has advanced rapidly, issuing PYUSD via Paxos under U.S. regulatory supervision, enabling near-instant, ultra-low-cost transfers through Solana in May 2024, and incorporating PYUSD at checkout to lower merchant processing fees. 

In April 2025, PayPal inked a partnership with Coinbase that marked another key milestone, enabling fee-free PYUSD purchases and 1:1 redemptions on Coinbase, while jointly exploring DeFi use cases and cross-border payment solutions.

This partnership not only expands PYUSD’s distribution but also fortifies its competitive edge by establishing a strong moat around PayPal’s dollar-backed token. In contrast to Coinbase, PayPal is embedding crypto into everyday commerce, giving it a unique advantage in driving broader consumer adoption.

Estimates for COIN and PYPL

The Zacks Consensus Estimate for COIN’s 2025 revenues implies a 5.9% year-over-year increase but the same for EPS implies a 61.1% decline. EPS estimates have, however, moved north over the past 30 days.

The Zacks Consensus Estimate for PYPL’s 2025 revenues and EPS implies a year-over-year increase of 3.2% and 9.3% respectively. EPS estimates, however, witnessed no movement over the past 30 days.

Are COIN and PYPL Shares Expensive?

Coinbase is trading at a forward earnings multiple of 59.67, which is in line with its median in a year. XYZ’s forward earnings multiple sits at 13.75, below its median of 14.75 over the past year.

Conclusion

Coinbase and PayPal are emerging as leading forces in the race to drive stablecoin adoption and crypto-powered payments. Coinbase is building out the Coinbase Payments platform, while PayPal is promoting its PYUSD stablecoin and forging partnerships for smooth integration. As their strategies increasingly intersect in the stablecoin arena, the stage is set for a competitive scenario.

COIN shares have gained 38.9% year to date, while PayPal shares have lost 13.8% in the same time. Though both COIN and PayPal carry a Zacks Rank #3 (Hold), COIN seems a safer investment option.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research