The main reason for the slump in profits was significantly higher expenditure. PayPal warns of a drop in sales due to the decoupling from the ex-parent company Ebay.
The online shopping boom triggered by the Corona crisis has brought further significant business growth to the online payment service PayPal.
In the second quarter, the revenues increased year-on-year by 19 percent to 6.2 billion dollars (5.2 billion euros), such as PayPal announced after the US stock market closed in San Jose, California. The total volume of payments processed grew by 40 percent to $ 311 billion. Nevertheless, the profit collapsed in the face of significantly higher spending by 23 percent to the bottom line $ 1.2 billion.
Although the results were in line with expectations, the share fell by around eight percent after the hours. Investors reacted nervously to the business outlook. Paypal warned, among other things, of a drop in sales due to the progressive decoupling from the ex-parent company Ebay. The companies belonged together until the split in 2015, but PayPal remained the exclusive payment processor for the online trading platform. However, Ebay is now setting itself up more independently and is also relying on alternatives, which is at the expense of PayPal.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
