PayPal Tops Earnings, Announces First Online Payment Service in China, Shares Rise After Hours

Global Payments platform PayPal (NASDAQ:PYPL) beat on earnings today and shares in the company responded after hours jumping by over 8%.

Revenue for Q3 increased by 19% to $4.38 billion as users increased by 7% during the quarter adding 9.8 million users. In total, PayPal reports 295 million users including 23 million merchant accounts – a 16% year over year increase. 48% of active accounts are outside the US.

PayPal says it expects to top $100 billion in total payment volume at some point this year. International revenue benefited from the acquisition of iZettle in Europe.

Loans receivable stand at approximately $3.5 billion with $2.4 billion from merchant receivables which includes PayPal working capital and PayPal Business loan products.

Perhaps the most interesting announcement is the acquisition of a 70% equity stake in Guofubao a third party payments provider in China. This is the first for a foreign company to receive approval from the People’s Bank of China. Of course, existing competition is pretty stiff as digital payments is more the norm and not the exception in China dominated by players like Alipay (Alibaba/Ant Financial).

The investor deck is below.


PYPL_Q3-19_Investor_Update_Final

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