PayPal’s Q3 M-Payments Volume Up 72 Percent; Square Denies Buyout Rumors (Oct. 16, 2014)
eBay Inc. subsidiary PayPal continued its growth streak during the third quarter, as the unit’s mobile payment volume surged 72 percent and 4.4 million new users came aboard during the period ended Sept. 30. PayPal is on track to process 1 billion mobile transactions this year, PayPal CEO John Donahoe said in an Oct. 15 press release. He noted that “rapidly changing competitive environments in commerce and payments” favor PayPal’s continued success. eBay last month announced plans to spin off PayPal during the second half of 2015, which Donahoe reiterated will help ensure the payment company’s long-term success.
PayPal’s net revenue during the quarter rose 20 percent to $2 billion, while PayPal’s newly rebranded PayPal Credit service saw 29 percent growth during the period. eBay and PayPal’s combined net revenue for the quarter was $4.4 billion, up 12 percent, while net income fell 2 percent to $673 million.
Analysts applauded PayPal’s results, while pundits weighed in on rumors that PayPal CEO Dan Schulman held talks about acquiring Square Inc. Earlier this month, Square raised $150 million in fresh funding. Observers speculate Square could fetch $6 billion with its present valuation, and its m-POS focus on small business could pair nicely with PayPal’s size and robust infrastructure. But Square’s co-founder Jack Dorsey threw cold water on buyout rumors, declaring those reports “false” in an Oct. 14 Twitter post.
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