PayPal Releases Impressive Results For Third Quarter
PayPal Holdings Inc. (NASDAQ: PYPL) beat expectations on earnings and revenue for the third quarter of its fiscal year. Overall, PayPal reported third-quarter earnings that were up 26 percent, beating Wall Street estimates by three cents a share. PayPal’s total revenue grew 14 percent in the third quarter to $3.68 billion.
The company reported the addition of 9.1 million accounts during the latest quarter. PayPal additionally reported a 25 percent increase in total payment volume, totaling $143 billion. The company also raised its fourth-quarter and full-year guidance.
Payment volume in Venmo was up 78 percent in the quarter, rising to $17 billion. PayPal acquired Venmo in 2013 when it purchased digital payments player Braintree for $800 million. PayPal said it processed more than $1 billion in instant transfer volume on Venmo in the period. It also saw growth in its Venmo card, with roughly 320 percent month over month growth August to September.
PayPal shares rose 9 percent after the earnings announcement. The payment company’s stock is now sitting above $86, with shares up more than 26 percent year over year.
PayPal has announced that it is expanding its relationship with American Express to provide more benefits to cardholders. They will now be able to use their Membership Rewards points when shopping from PayPal merchants. PayPal says it will also integrate into the American Express Token Service as part of the deal.
PayPal users will be able to pay their Amex bill with their PayPal or Venmo balance. Amex mobile app users will also be able to send money through PayPal or Venmo directly in the app. Dan Schulman, President and CEO of PayPal, said in a statement, “Our new partnership expands PayPal’s ubiquity, and enables us to offer consumers and merchants new and innovative product experiences.”
The deal is similar to those PayPal struck earlier with Visa and MasterCard. PayPal has also entered into partnerships with Apple, Google, Samsung, and Walmart. PayPal is also expanding its relationships other payment providers, including Apple Pay. The partnerships are designed to increase its PayPal’s visibility and adoption.