Companies look to serve shared customers
PayPal (PYPL) has partnered with Walmart (WMT) on a cash deposit and withdrawal program as the companies seek to better serve their shared customers. The program is initially rolling out in the United States. As PayPal has faced intense competition, the company is seeking new ways to improve its customer loyalty.
Walmart and PayPal expand in India
Following this acquisition, Walmart stepped up its competition with Amazon (AMZN), which plans to invest more than $5.0 billion to grow its business in India. PayPal launched its domestic operations in India last year, shortly after Google (GOOGL) introduced a localized digital payment service in the country.
PayPal expands its revenue stream
The Walmart deal expands PayPal’s revenue stream, as the companies plan to charge customers $3 per use for their financial services. With this arrangement, PayPal is embarking on a path that could result in soaring transaction numbers. PayPal handled 2.5 billion transactions in the third quarter, up 27.0% year-over-year. This Walmart deal could also come as a relief for PayPal investors concerned about eBay (EBAY) dropping PayPal as its main payment processor.