Money

PayPal’s mobile strategy pays off with 19% revenue rise

Money

PayPal’s aggressive push into the mobile payments space has proved to be lucrative, with the fintech firm enjoying better than expected profits in the first quarter of the year.

Paypal split from eBay in July last year, and has seen accelerated revenue growth in each quarter since, with heavy investment in mobile payments, including the acquisition of Xoom late last year, underpinning growth that has driven revenues to $2.5bn.

Most people may still think of PayPal as the payment platform for buying and selling good on eBay, but since being split from the company, it has focused on creating partnerships with a variety of other stores, and marketplaces. It’s secure payment methods are now common in gambling sites, as well as travel companies such as BA and The Train Line and Air France, and stores such as Argos and Ebuyer.

These deals with large retailers have pushed down PayPal’s margins, but PayPal CFO John Rainey tells the Financial Times that is a “deliberate part of our strategy as we are trying to increase the ubiquity of PayPal”.

Dan Schulman, President and CEO of PayPal, said:

“Our first quarter results continue to demonstrate the power of our global payments platform to attract and engage consumers, increasing our global scale and in turn attracting new merchants and partners to PayPal.

“Our focus on payments and ability to innovate for merchants and consumers continues to differentiate PayPal and drive our growth in a dynamic and competitive environment.”

Photograph by Peter

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