PayPal Holdings announced positive results for the third quarter of the current year,
confirming sustained consumer confidence amid inflation slowdown.
These results signify a notable increase in spending on the company’s platforms.
Total payments made through PayPal’s platform reached nearly $387.7 billion, exceeding analysts’ expectations by 13%. Additionally, the company reported a 20% increase in earnings per share, reaching $1.30, well above its previous projections. The company anticipates continued growth in earnings per share for the full year, with a 21% increase to $4.98.
In addition to this positive news, the company announced the appointment of Jamie Miller, who previously held leadership positions at Ernst & Young, as the new Chief Financial Officer, effective November 6th. Following this announcement, the company’s stock saw a slight increase in after-hours trading on the New York Stock Exchange, reducing its annual losses to 28%.
This success comes as the U.S. economy continues to recover sustainably, with consumers showing increased willingness to travel and spend on new experiences after the pandemic period.
It’s worth noting that PayPal appointed Alex Kress as its new CEO in August, following the resignation of Dan Schulman, who aimed to redirect the company towards enhancing the core payment experience it has been known for over time. The company is also working on improving operational efficiency and increasing revenues at a faster pace than expenses.
In a statement by the new CEO, Alex Kress, he stated, “During my first 30 days leading PayPal, I have become assured of its strength and leadership position in the market. Now, we must leverage these strengths and direct the organization’s resources towards our core priorities.”
The company, headquartered in San Jose, California, achieved an adjusted operating margin of 22.2% in the third quarter, representing an 18 basis point increase. This reflects the company’s continuous excellence and its ability to adapt to market changes and effectively respond to consumer needs.
Visa’s Bold Step Towards Ethereum, it was a big day for the crypto world yesterday,
as global payments giant, Visa signalled its stronger, sustained interest in crypto.
The firm released a paper outlining how it could one day collaborate with the Ethereum network on automatic payments.
This move by Visa is an exciting development
and shows that they are taking cryptocurrency seriously as an asset class and payment method.
The paper outlines how Visa could use smart contracts to facilitate automated
payments between two parties without any manual intervention or third-party involvement.
According to the company’s press release,
this would enable faster processing times while reducing costs associated
with traditional payment networks such as foreign exchange fees or cross-border transaction charges.
Additionally, it would also provide improved security measures due
to its decentralized nature which makes fraud more difficult for hackers and cybercriminals alike.
This announcement from Visa is yet another sign of mainstream adoption
of cryptocurrencies into everyday life, something that many have been predicting
for years but has only recently become a reality thanks to companies
like Tesla investing heavily in Bitcoin earlier this year (notably followed by other major corporations).
It seems clear now that we can expect even bigger moves from financial institutions
when it comes to incorporating digital assets into their operations over time;
especially considering recent reports indicating growing demand
amongst institutional investors who see digital currencies
offering potential hedging benefits against inflationary pressures caused
by quantitative easing policies around the globe during these unprecedented times, we find ourselves living through today!
Though such capability does not yet exist on the Ethereum main net, it would be enabled by Account Abstraction, a popular proposal that would allow user accounts to behave like smart contracts and feature pre-scheduled execution functions.
It’s clear that Visa sees cryptocurrency as a key part of its long-term payment strategy and these auto payments are just another sign of its commitment to crypto innovation.
Visa Unlocking the Future
While they may not have a dramatic impact on banking or payments right away,
it’s still exciting news for those who want more options when it comes
to transfer money securely without relying on centralized institutions or traditional banking infrastructure.
Crypto has already become an integral part of our lives today,
from buying groceries online using Bitcoin to paying the rent with Ethereum
and now we can look forward even further into the future when we will have access
to new ways of making automated transactions directly from our own wallets!
It’s only natural that companies like Visa recognize this potential
so early in order for them to stay competitive in what promises
to be an ever-evolving financial landscape powered by blockchain technology.
“We want to have an opportunity to actively contribute
to technical developments happening in the crypto ecosystem,” Catherine Gu, Visa’s Head of CBDC and Protocols, told Decrypt.
“The best way to do that is learning by doing—actually getting deeper into Web3 infrastructures
and blockchain protocols, areas I think are going to be really important for payments.”
The fall season is a flurry of activity for the world’s leading financial services companies,
and this year has been no exception. Visa, PayPal, Western Union, and others have all filed trademark applications related to cryptocurrency in recent weeks.
Visa was one of the first to make its move into crypto when it announced that it would be launching a new payment system based on blockchain technology back in October 2018. The company has since expanded its offering with additional features such as instant payments via text message or email using tokens stored on a customer’s Visa card account, allowing customers to easily use their existing cards without having to switch providers or learn how cryptocurrencies work.
The Rise of Crypto
PayPal followed suit shortly after by filing trademarks related to digital currency storage solutions as well as peer-to-peer transactions involving virtual currencies like Bitcoin and Ethereum. It also launched an initiative called “Crypto Currencies Hub” which provides merchants with access to information about different types of digital assets available for purchase through PayPal accounts—enabling them more flexibility when making purchases online or at brick-and-mortar stores around the world…
Western Union also recently showed interest in entering the crypto space by filing trademarks associated with international money transfers involving virtual currencies such as Bitcoin Cash (BCH). This could potentially open new opportunities for businesses looking for cost-effective ways of transferring funds overseas while avoiding high fees charged by traditional banks…
Finally, Gu Group Inc., which specializes in researching disruptive technologies including blockchain solutions, is another major player that appears keenly interested in exploring what other possibilities lie ahead within this rapidly expanding industry…
It’s clear from these filings that many large organizations are taking notice of cryptocurrency’s potential power, not just those who specialize directly within this sector but even established players like Visa and PayPal who have already made strides towards integrating these emerging technologies into their respective offerings over time…
As we continue forward into 2020 it will be interesting to see how quickly these big names can bring some much-needed innovation onto our shores!
