Identifying fintech winners: An analysis of the success factors of PayPal, Finexity and Coinbase

PayPal – In the crypto-driven awakening

PayPal has long been more than just a classic online payment service. The Company is resolutely driving forward its transformation in the digital financial world, focusing heavily on cryptocurrencies and blockchain technology. Users in the US can already send Bitcoin, Ethereum, and the Company's own stablecoin PYUSD not only within the PayPal environment, but also to external wallets. This simplification of peer-to-peer crypto payments, often processed via personalized links, is deliberately aimed at the masses and is intended to make digital assets suitable for everyday use. With this strategy, PayPal is building a bridge between traditional financial services and the new world of digital assets.

The figures for the second quarter underscore the solid foundation of this transformation. A 5% increase in revenue to USD 8.3 billion and a rise in payment volume to USD 443.5 billion show steady operational growth. However, the focus is clearly on the future. The strategic partnership with Google to improve fraud detection and trading processes through AI is a key component. At the same time, the core business is being strengthened with solutions such as "PayPal Links" for cross-border payments, and platforms such as Venmo are being made more profitable.

Despite the robust figures and innovative initiatives, the investor environment remains divided. Although the stock has stabilized after periods of volatility, analysts' opinions are mixed. The challenges lie in stagnating user numbers and intense competition. Further success will depend largely on whether the Company succeeds in converting the growth momentum from its crypto activities and technology partnerships into sustainable earnings. The quarterly figures at the end of October will undoubtedly provide important insights into this. The stock is currently trending sideways and is trading at USD 67.30.

Finexity – More than just a trading platform for tokenized assets

Finexity AG has succeeded in connecting the traditional capital markets with the dynamic world of digital assets. Its main goal? To open up asset classes such as private equity, real estate, and infrastructure projects, which are typically rather difficult to access, to more investors through tokenization. Put simply, the Company aims to turn complex investments into something that can be traded as easily as a share. As of today, more than 250 assets are already available. The Company's business rests on two strong pillars: a structured business with the capital markets and its proprietary trading platform, which directly links issuers with investors.

With its announcement on September 25, Finexity underscores its expansion ambitions. Specifically, the Company is launching its first issue, which will give German private investors purely regulated and liquid access to selected luxury properties in Dubai. The initial project is financing the redevelopment of a villa in Al Barari. The offer will be available on the Finexity trading platform from October 6 at 12:00 pm CET. At the same time, Finexity is establishing professional fund structures for institutional investors, which are scheduled to be launched in the first quarter of 2026. This two-stage approach demonstrates the strategic depth of the marketing.

This step comes at an extremely favorable time in the market. Dubai is not only seeing strong growth in the number of high-net-worth individuals, but also as a financial hub. The Dubai International Financial Centre (DIFC) recently reported a significant increase in company registrations. The luxury real estate market, which is growing at double-digit rates, is benefiting particularly from this momentum. For 2026, Finexity is already planning issuances in the double-digit million euro range for the region. The internationalization of the capital markets business thus appears to be systematic and targeted - especially since this type of business is still in its infancy and therefore promises significant growth opportunities. The share is currently trading at EUR 48.60.

Coinbase – More than just a crypto exchange

Coinbase has long since evolved from a pure trading platform for Bitcoin and Ethereum to a broad-based blockchain infrastructure platform. Its core business remains the exchange, which is continuously being expanded to include new digital assets. But the strategy goes far beyond that. With its own blockchain solutions, such as Base, a Layer 2 network on Ethereum, and a strong focus on tokenizing traditional assets, the Company is building a comprehensive ecosystem. The vision is a kind of "all-in-one exchange" that makes traditional asset classes such as stocks or derivatives tradable via blockchain.

The latest quarterly figures paint a mixed picture. Although revenue grew slightly, it fell short of expectations. The operating business was under significant pressure, which was reflected in weak earnings per share. One-off charges, such as those resulting from a data incident, contributed to this. On the positive side, net income stood out, but this was driven primarily by investment income rather than day-to-day business. Particularly striking was the significant decline in trading volumes, both among private and institutional customers.

Despite the current challenges, Coinbase is consistently focusing on expansion and product diversification. The completion of the acquisition of the Deribit options platform and the introduction of new derivative products such as stock index futures are aimed at strengthening the loyalty of institutional investors in particular. At the same time, revenue from more stable sources such as subscriptions and services, including staking and decentralized credit products, is growing. These initiatives are intended to make the Company less dependent on volatile crypto markets and secure more stable revenue streams in the long term. The stock is currently trading at USD 312.59.

The analysis concludes by highlighting three different but equally forward-looking strategies in the fintech sector. PayPal is consistently building a bridge between traditional financial services and the crypto world with initiatives such as its stablecoin PYUSD. Finexity is opening up new, previously illiquid asset classes to a broad audience through the tokenization of luxury real estate. Coinbase, on the other hand, is strategically evolving from a pure crypto exchange to a diversified infrastructure platform for digital assets. Together, these companies demonstrate that long-term success depends on the ability to not only serve markets but to actively reshape them.