Hedge fund titan Daniel Loeb is ready to anoint PayPal as the next Amazon or Netflix, revealing to investors in his hedge fund Third Point Management that it acquired a position in the online financial transaction company.

Since 1998, PayPal has been an innovator in facilitating online financial transactions as opposed to the traditional paper methods, such as checks and money orders. It serves as a payment processor for online vendors, auction sites like eBay and other commercial users.

“Consumers love PayPal because it enables hassle‐free, one‐touch checkout across millions of online merchants,” Loeb told investors in a note. “We see parallels between PayPal and other best‐in‐class internet platforms like Netflix and Amazon: high and rising market share, untapped pricing power, and significant margin expansion potential.”

As of 3:00 p.m. ET, PayPay (PYPL) was up almost 2%, trading at $89.22. The stock is up over 50 percent within the past year and up 21% year-to-date.