2025-04-10T17:09:07.000Z

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On Thursday, PayPal Holdings (PYPL) unveiled a significant advertising campaign in conjunction with a new sweepstakes promotion, featuring a staggering total prize pool of up to $10 million. Despite this bold initiative, PayPal's stock experienced a decline, continuing a troubling trend into 2025.

The primary objective of this advertising push and promotional event is to encourage consumers to utilize PayPal's online checkout services and payment plans more vigorously. Each day for a duration of 100 days, a thousand fortunate winners will have their purchases, capped at $100, reimbursed simply by using PayPal Checkout. To add to the excitement, customers are eligible to win up to five times throughout the promotion period, as stated in an official news release from the company.

PayPal has touted this promotion as its "biggest sweepstakes ever," and it features the well-known comedian Will Ferrell in its ad campaign, aiming to draw attention and engage potential users with his comedic flair.

Unfortunately, the timing of this announcement coincided with a sharp decline in PayPal's stock prices. On the day of the campaign launch, shares fell by more than 6%, settling at $59.87. Since the beginning of 2025, PayPal's stock has plummeted approximately 29%, reflecting broader struggles within the fintech sector.

The downturn in PayPal's stock is part of a larger trend affecting many fintech companies, particularly in light of recent economic uncertainties. Concerns over a potential U.S. recessionexacerbated by tariff-based trade policies initiated during President Donald Trump's administrationhave contributed to a challenging investment climate for these companies.

Affirm Holdings (AFRM), another player in the fintech space that specializes in the "buy now, pay later" (BNPL) model, has also faced significant setbacks. On the same day as PayPal's announcement, Affirm's shares fell over 10%, bringing its value down to $39.77. In 2025, Affirm's stock has seen a decline of approximately 33%.

Both PayPal and Affirm operate in the competitive BNPL market, which allows consumers to make purchases and pay them off in manageable monthly installments, typically at lower interest rates compared to traditional credit cards. During an investor day event earlier this year in February, PayPal revealed ambitious plans to double its BNPL business, aiming to reach nearly $60 billion in transaction volume over the next three years.

As the fintech landscape continues to evolve, PayPal's first-quarter earnings report, due on April 29, will be closely monitored by investors and analysts alike. This report will shed light on how the company has fared amid these economic challenges.

Based in San Jose, California, PayPal has transitioned from merely an online checkout option to a comprehensive mobile shopping and person-to-person payment application. However, the company faces ongoing concerns about losing market share in the online checkout space to formidable competitors, including tech giant Apple (AAPL), which further complicates its market standing.

For ongoing updates on the latest trends in technology, including insights on artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on X, formerly known as Twitter, at @reinhardtk_tech.