PayPal sets sight on progressing mobile payments business

0
2195
Paypal app logo
PayPal steps-up P2P payments with Venmo QR code introduction

PayPal reported third quarter earnings last week with an 18% increase in revenue at $2.67 billion, when analysts were expecting $2.65 billion.

However, it is reported that some investors were disappointed to see that PayPal missed its

Paypal app logo
PayPal sets sight on progressing mobile payments business

total payment volume, a metric of total transactions on its platforms. The company brought in $87 billion in TPV, below the expected $88.3 billion.

PayPal revealed that it expects full year revenue to be somewhere between $10.78 billion and $10.85 billion.  Shares first dipped and then traded up about 3% in early after-hours trading, following the earnings release.

“We are further expanding the ubiquity and value of the PayPal brand and moving deliberately towards achieving our vision of becoming an everyday, essential financial service for people around the world,” said CEO Dan Schulman, in a statement.

With 192 million active accounts, PayPal has long been a leader in online payments. The company has greatly benefitted from the rise in e-commerce.

And since spinning off from eBay last year, the company has doubled down on its mobile business, focusing on its Braintree and Venmo brands.

Braintree powers the payment transactions for Uber, Airbnb, Pinterest and more. This means that every time someone takes an Uber, PayPal makes money.

Venmo is the P2P mobile payments app, that is particularly popular with young people. It digitizes the “IOU” and makes splitting bills easy. The transactions are free for consumers, but Venmo has recently begun working with businesses, in an effort to monetize the service.

Earlier this year, PayPal announced a change to the way it does business with Visa and MasterCard. Instead of directing consumers to use the standard ACH bank account payments, PayPal now makes it clear that credit cards are compatible with its service.

This came after mounting pressure from credit card companies, who were concerned about losing business to online bank transfers. More credit card fees will raise PayPal’s costs, but the team is hoping that the easier accessibility will result in more transactions.