PayPal grows mobile volumes ahead of split

PayPal grows mobile volumes ahead of split

16 OCT 2014

PayPal saw its volume of transactions on mobile devices grow by 72 per cent to $12 billion in the third quarter, ahead of its proposed split from parent eBay in 2015.

In addition, the payments firm is on track to hit the milestone of processing one billion mobile transactions in 2014.

eBay argued an independent PayPal can better react to the fast-growing mobile and online payments market.

Meanwhile eBay cut its full-year sales guidance, with the shortfall blamed on harsher competition and the ongoing impact of a security breach earlier this year.

eBay (including PayPal) now expects full-year revenue of $17.95 billion against an estimate of $18.3 billion.

Revenue in Q3 grew 12 per cent to $4.4 billion while earnings (on a GAAP basis) were $673 million, a decline of two per cent.

PayPal’s mobile payment volume of $12 billion in the third quarter represents 20 per cent of its total payment volume. Active accounts acquired on mobile were 2.9 million.

“Rapidly changing competitive environments in commerce and payments underscore the opportunities for eBay and PayPal, and highlight how each business will benefit from the focus and agility of being an independent company,” said eBay CEO John Donahoe.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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