uploads///eBay PayPal revenue growth rate

PayPal’s Robust Contribution to eBay’s 2Q15 Earnings



Paypal drove second quarter earnings

PayPal (PYPL) started trading separately after the release of eBay’s earnings on July 16. It reported robust growth during 2Q15. It reported a YoY (year-over-year) top line growth of 19% in 2Q15—compared to 17% in 1Q15.

The strong performance was attributed to growth in the global active accounts. They rose by 11% in 2Q15. Besides an increase in the active users, the net number of payments and merchant services TPV (total payment volume) also depicted an increase of 27% and 36%, respectively.

Over the past two years, PayPal has shown strong growth. As you can see in the above chart, PayPal’s YoY revenue growth did slow down a bit in 1Q15. However, it was mainly due to the strong US dollar (UUP). Without the currency issues, PayPal’s revenue growth would have been 17% in 1Q15.

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Paypal’s future outlook looks promising

Paypal is now independent 13 years after it was acquired by eBay. It’s showing signs of growing strength in the payments space. PayPal will need to continue to be innovative since the competition from Apple (AAPL) and Google (GOOG) in the mobile payments space is rising quickly. A few months ago, Google launched its revamped Android Pay mobile payment service at its I/O conference.

PayPal will also look for opportunities to strike a deal with eBay’s competitors including Amazon (AMZN) and Alibaba. eBay will still be PayPal’s client.


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