Wednesday, 20 June, 2018

PayPal sees 24% revenue growth in its latest quarter

Devin Wenig incoming CEO of eBay David A. Grogan | CNBC Devin Wenig incoming CEO of eBay
Nellie Chapman | 01 February, 2018, 08:45

PayPal also said that it had inked a deal with eBay Inc. that will continue to make PayPal a payment method on eBay through July 2023. When customers check out, they will have the option to stay on eBay and use Adyen's services or leave the website and use PayPal.

EBay accounts for roughly 13 percent of total payments processed by PayPal.

PayPal's social payments platform Venmo processed $10.4 billion of TPV, up 86 percent over the same period previous year. At the moment, PayPal's value is billions more than eBay - its shares fell after news of eBay's decision was announced, but it remains to be seen if it will have a huge and permanent effect on the payment portal's business.

PayPal's new strategic direction has led to partnerships with numerous large financial institutions and big technology companies including Alphabet's Google, Apple, Mastercard, Visa and JPMorgan Chase.

Excluding one-time items, eBay earned 59 cents per share. Analysts on average were expecting 54 cents, according to Thomson Reuters. The transaction is expected to close in the third quarter of the year. Analysts had been forecasting $15.16 billion.

Mobile payments were also strong, as the company said it processed approximately $48 billion in mobile payment volume during the quarter, representing growth of around 53 percent year over year. The app processed $10.4 billion in payments in just the fourth quarter alone.

EBay, which reported earnings on Wednesday, brought in $2.61 billion in revenue during its latest quarter. Analysts are expecting revenue of $3.55 billion with earnings of 54 cents a share. Revenue rose to $3.74 billion from $2.98 billion in the year-ago period.