PayPal earnings increased following its spin-off from eBay, which is good news for the company. However, it has been reported that it fell short of the analysts' forecast.
For its Q3, the digital payment organization reported earnings of $301 million or 25 cents per share. Analysts forecasted a $2.27 billion sales, but the company fell slightly short of this expectation, having a $2.26 billion sales, The New York Times learned via Bloomberg data.
During PayPal's first financial report since its separation from Ebay, the company reported a 31 percent or 31 cents a share leap on its profit. The revenue also increased by 15 percent, according to the report of Fortune.
The site additionally reported that PayPal's share fell by nearly five percent to $34.87 after trading hours.
The company reportedly processed 345 million transactions from mobile apps, which is 38 percent higher compared to the previous quarter.
It has also been reported that during the third quarter, Paypal processed 1.22 billion transactions or 27 payment transactions per active customer account, thereby increasing its total payment volume by 27 percent to $70 billion, Business Wire reported. This is an increase of three counts, from the 24 processed payment transactions in the same period of last year.
PayPal states it now has 173 million active customers, and it still continues to add new partners. This aims to acquire customers like Macy's, Shell in the United Kingdom and America Movil, the largest Latin America wireless mobile provider.
Colin Sebastian, a research analyst from R.W. Baird & Company, said that PayPal had yet to decide the kind of independent company it wants to be. In his opinion, PayPal is at a crossroad — whether in e-commerce or will it possibly compete with financial service giants like Visa.
"Do they continue to focus on e-commerce, a really successful business for them? Or do they have their sights set on much bigger goals, potentially competing with Visa and MasterCard?" he said.
The company claims that it wants to help its customers have a better control over their money, hence, their commitment to create "transparent and compelling" credit products. Since PayPal Working Capital product was created, the company said that it had already facilitated over $1 billion in credit to small and middle-size traders.
PayPal was founded in 1998 and for more than a decade, it still revolutionizes the digital payment systems. The company claims that they put people at the center in everything they do, hence, the creation of an open and secure payment ecosystem for individuals and businesses.
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