PayPal announced today that it is teaming up with Visa in a move created to open up its payment processing service and Venmo offering to more people. In doing so, the credit card’s digital image will be incorporated into PayPal’s payment flows, but won’t necessarily be linked to a bank account through ACH.
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PayPal (NASDAQ:PYPL) and Visa (NYSE:V) today announced a US strategic partnership that will result in an improved and more seamless payment experience for Visa cardholders and will offer greater choice in how consumers pay with the PayPal and Venmo wallets. The results included several one-time items, but the largest one was a $1.9 billion charge related to the ending of a framework agreement between Visa and Visa Europe. Paypal Holdings Inc makes up approx 0.89% of Handelsbanken Fonder Ab’s portfolio.Neville Rodie Shaw Inc boosted its stake in PYPL in the latest quarter, The investment management firm added 77,100 additional shares and now holds a total of 83,500 shares of Paypal Holdings Inc which is valued at $3,279,880. PayPal reported revenue of $2.65 billion, up from $2.29 billion in the year-earlier period and above the FactSet consensus of $2.60 billion. The company had revenue of $2544.00 million for the quarter, compared to analysts expectations of $2499.93 million.
Operating margin dropped to 14 percent from 17.3 percent past year. Additionally, PayPal said it’ll support the needs of issuers to identify people who are choosing to migrating existing ACH payment flows to their Visa cards. This will expand acceptance for PayPal’s digital wallet to all physical retail locations where Visa contactless transactions are enabled.
The deal is meant to make it easier for customers to use Visa credit and debit cards in PayPal transactions and allow shoppers to use PayPal in brick-and-mortar retail locations.
Looking forward to the third quarter, PayPal expects earnings of $0.33 to $0.35 per share and revenues of $2.62 billion to $2.67 billion. Earnings per share was also in line with Wall Street estimates at 36 cents.
Other Hedge Funds, Including, Handelsbanken Fonder Ab reduced its stake in PYPL by selling 30,000 shares or 4.95% in the most recent quarter. Analysts now estimate earnings of $1.49 per share and revenues of $10.70 billion. The company’s revenue was up 19.0% compared to the same quarter a year ago.
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PayPal shares were up about 2 per cent in after-hours trading after closing at $40.13 on the Nasdaq.
