Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.
PayPal experienced a pandemic boost, posting one of the strongest quarters in its history Monday, driven by new users and a record number of payment transactions.
Continue Reading Below
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PYPL | PAYPAL HOLDINGS INC. | 187.76 | +1.63 | +0.88% |
“Our growth reinforces the essential role we play in our customers’ daily lives during this pandemic,” Paypal president and CEO Dan Schulman said in the earnings release.
Overall, the company had 4 billion payment transactions in the quarter and reported 15.2 million new net active accounts, ending with a total of 361 million active accounts.
Still, the stock declined in extended trading after the company’s forecast fell short of expectations.
This after reporting third-quarter net income of $1.02 billion, or 86 cents a share, and net revenue of $5.46 billion, up 25 percent year over year compared to $4.37 billion a year ago. Paypal’s total payment volume came in at $247 billion, up 36% year-over-year compared to $178 billion a year ago.
Approximately $44 billion in total payment volume was processed by Venmo, growing 61 percent, while PayPal’s merchant services grew 40 percent.
CLICK HERE TO GET THE FOX BUSINESS APP
PayPal also forecasts revenue for Venmo will approach $900 million in 2021, driven by investments in new capabilities, and reach profitability in 2022.
A new service from PayPal allows its customers to buy, hold and sell cryptocurrency directly from their PayPal account (Photo courtesy PayPal)
The company’s cryptocurrency feature, which was announced last month, was rolled out to 10% of the company’s customers has had strong early demand. To meet that demand, the company will increase its $10,000 limit per day to $15,000 per day, which will be rolled out throughout the United States in the next two to three weeks and the Venmo platform in the first half of next year.
PAYPAL TO ROLL OUT NEW SERVICE ALLOWING CUSTOMERS TO BUY, SELL AND HOLD CRYPTOCURRENCY
Meanwhile, Venmo’s first credit card, also announced last month, is expected to fully roll out to all PayPal customers in the first quarter of 2021 which Schulman noted will work as a “true extension of the Venmo app and fully linked to its capabilities.”
