E-commerce and payment processing

Putnam Investments, 06/25/20


Putting durable growth themes to work
A thematic approach is a distinctive feature of Putnam Growth Opportunities Fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon.

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THEME: E-commerce and payment processing

Peer-to-peer electronic money transfers have rapidly become much more common and accepted. E-commerce transactions and one-button checkout are taking share from cash and physical card payments. The U.S. e-commerce market has grown at 16% annually since 2001, well ahead of aggregate retail sales during the same time period.

As of the end of 2018, there were more than 80 million mobile phone peer-to-peer payment users in the United States, according to market research firm eMarketer.

STOCK: PayPal Holdings (PYPL)

PayPal enables businesses and individuals to electronically transfer money and has benefited from the rapid adoption of digital payments.
  • PayPal has experienced consistent, mid-teens year-over-year growth in active accounts. We are optimistic about the potential to monetize Venmo, the company’s app that provides peer-to-peer payments.
  • User growth for Venmo has been strong, especially among younger users who appreciate the ability to send cash quickly between friends.

PayPal holdings: 3.51% (as of 5/31/2020) | See complete holdings

e-commerce has grown much faster than traditional retail


Putnam Growth Opportunities Fund

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