Powerful PayPal parades financial prowess
It’s a positive time for PayPal as it reveals healthy revenue growth, an increase in income, and payment volumes powering on.
In its Q2 results, for the period ended 30 June 2018, the paytech titan reported revenue growth of 23% to $3.86 billion, and a GAAP operating margin of 14.8% – with a non-GAAP operating margin of 21.3%. Net income rose from $411 million in Q2 2017 to a feisty $526 million.
On top of this, 7.7 million active accounts were added, an increase of net active accounts of 18%; while it supported 2.3 billion payment transactions, up 28% from last year. In terms of total payment volume, this rose 29% to $139 billion.
Dan Schulman, president and CEO of PayPal, highlights its “customer choice initiatives”, “partnership strategy” and its four acquisitions as contributing factors to this healthy state of affairs.
As reported earlier this month, Schulman made it clear that its spending spree is not slowing down yet.
In fact, also in July, Synchrony bought $7.6 billion in PayPal’s consumer credit receivables – which handily frees up more cash for M&A activity.
It’s not all about M&A action. This month, PayPal splashed out the cash and led a $50 million investment round in UK-headquartered payments firm PPRO Group.
With PayPal (and others – such as Venmo, Zelle and Square Cash) doing so well, it can cause grief to rivals. A few days ago, Snapchat’s peer-to-peer payment add-on, Snapcash, said that it will discontinue its service on 30 August 2018.
We’ll end with something very final. PayPal recently wrote to a deceased woman threatening to take legal action because she breached its contract by dying.