uploads///

Why Mobile Is a Big Focus for PayPal

By

Dec. 18 2018, Updated 10:30 a.m. ET

PayPal’s mobile payment volumes rose 45%

At an investor conference hosted by Goldman Sachs earlier this month, PayPal (PYPL) CEO Dan Schulman said that the company’s platform strategy wasn’t just mobile-first but mobile-only. He went on to talk about PayPal’s mobile milestones during the recent Black Friday and Cyber Monday shopping events.

In the third quarter, PayPal’s mobile payment volumes jumped 45% year-over-year to $57 billion and accounted for 40% of the company’s total payment volumes compared to 35% a year earlier.

Article continues below advertisement

Mobile-based e-commerce sales to hit $3.6 trillion by 2021

Mobile has become a big focus for PayPal because the company sees the rise of mobile commerce as a strong tailwind. According to eMarketer, purchases made on mobile devices accounted for 58.9% of all online retail sales worldwide in 2017, up from 40.2% in 2015. Worldwide mobile-based e-commerce sales are forecast to jump from $1.4 billion in 2017 to $3.6 trillion by 2021, at which time mobile is expected to account for 72.9% of all online retail sales.

PayPal serves more than 20 million merchants. These include big retailers such as Best Buy and Target.

PayPal posted $0.36 EPS in the latest quarter

PayPal generated revenue of $3.7 billion and made a profit of $436 million in the third quarter, translating to EPS of $0.36. Its mobile payment peers Yandex (YNDX), Amazon (AMZN), and Alphabet (GOOGL) posted EPS of $0.23, $5.75, and $13.06, respectively, in the quarter. Square (SQ) reported EPS of $0.04 in the third quarter.

Advertisement

More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.