Over the past decade, the fusion of finance and technology has reshaped how we spend, save, and invest. Two of the biggest names in this transformation are Block (NYSE: XYZ) and PayPal (NASDAQ: PYPL)—pioneers in digital payments and fintech innovation.
Despite being household names, both companies have seen their stock prices slide. As of April 9, Block is trading nearly 80% below its all-time high, while PayPal is down 79% from its peak. For long-term investors, though, these dips could represent a rare chance to buy quality fintech stocks at a discount.
So, which one looks more attractive right now? 
Block: Building on a Dual Ecosystem
Block stands out for its two distinct, yet complementary, ecosystems. Its Square platform supports merchants with tools for payments, analytics, and operations, while Cash App serves individuals with banking-like features including peer-to-peer transfers, investing, and even small loans.
In 2024, Block generated $8.9 billion in gross profit, up 18% year over year—double what it reported just three years ago. While Square continues to expand its Gross Payment Volume (GPV), Cash App is growing even faster, particularly in the personal finance and lending space.
Block is barely scratching the surface of its $205 billion total addressable market, having captured less than 5% so far. Meanwhile, the company is finally turning its focus toward profitability. In 2024, operating income reached $892 million, a significant step forward.
Despite a slowdown in growth, Block’s current forward P/E of 12.8 makes it look undervalued relative to its potential. With improved operational efficiency and strong market demand, Block may be poised for a rebound.
PayPal: Trusted Brand with New Growth Engines
PayPal has long been a trusted name in digital transactions, and it’s doubling down on product innovation. New features like Fastlane for one-click checkouts, Smart Receipts powered by AI, and CashPass cash-back rewards show the company’s efforts to create a more personalized and compelling user experience.
With a massive $1.7 trillion in payment volume processed in 2024 and 434 million active accounts, PayPal benefits from a powerful two-sided network that few competitors can match.
Financially, PayPal remains robust. It holds $4.3 billion in net cash and delivered an operating margin of 16.7% in 2024. The company expects to generate $6.5 billion in free cash flow this year, most of which will go toward aggressive share repurchases in 2025.
Like Block, PayPal is trading at a forward P/E of 12.8, making it another strong contender for value-oriented investors.
Verdict: Why Not Both?
Both Block and PayPal bring something unique to the table. Block offers high-growth potential through Cash App and a strong position in small business services. PayPal offers unmatched scale, brand equity, and consistent profitability.
Given their current valuations and strong foothold in the evolving fintech landscape, investors looking for exposure to the future of digital finance might consider taking positions in both. Diversifying between these two leaders could be a smart way to ride the fintech wave.
