Secure payments in Europe
At the beginning of 3Q17, PayPal (PYPL) announced several strategic partnerships to support its growth in its overseas markets. PayPal is working to fend off competition from rival payment processors such as Square (SQ).
PayPal announced the extension of its strategic partnership with Visa (V) to Europe (EFA). Under this partnership, PayPal and Visa would work together to provide secure in-store, online, and in-app payment support to their customers in Europe.
PayPal and Visa were already collaborating to provide similar services to their consumer and business customers in the US (SPY) and the Asia-Pacific region. As part of the extended collaboration with Visa, PayPal would be able to issue Visa cards to its customers.
Payment through Apple’s services
Growing international sales
The strategic partnerships with Visa and Apple could help PayPal accelerate the growth of its international business by taking greater advantage of the expanding digital payments market. In 2Q17, PayPal’s international revenues rose 16% year-over-year to $1.4 billion, as shown in the chart above.
However, international sales comprised only 46% of overall revenues in 2Q17 compared to 47% in 2Q16.