PayPal Holdings Inc. misses revenue expectations in its first report since separated from EBay Inc. The company reported a rising year-over-year profits and revenue growth.
The online payments system company, which separated from its parent company (eBay Inc.) in July, has reported its first quarterly result (third-quarter) as a standalone company.
One of the main reasons for separating from its parent company was to make sure that each company could focus on their main businesses. There is no doubt that PayPal faces serious competition from start-ups such as Square Inc. and Stripe Inc. and other tech giants such as Apple Inc., Google Inc. who has also joined the digital payments race.
The New Chief Executive Dan Schulman (formerly an American Express executive) has a lot to proof in other to keep PayPal ahead of competitors. Although his strategy is to use payments as an entry point and build additional services to go with them, such as the company’s merchant cash advance program PayPal Capital, which gives preapproved loans to businesses that are processing there payments through PayPal. The digital payments giant is also getting into the international money-transfer business by acquiring a remittance company; Xoom Corp. for $900 million in a deal announced July this year.
According to MarketWatch; “PayPal added 4 million active customer accounts in the period, up 2.4% from the second quarter, for a total of 173 million. The firm has maintained a steady 2% to 3% sequential growth in users for several quarters.”
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