Shares of PayPal (PYPL) finished Friday up over 9% after the company released third-quarter earnings showing significant quarterly growth across metrics and a bullish outlook for Venmo, the company’s social payment app.
— PayPal (@PayPal) October 18, 2018
According to the earnings release, PayPal’s revenue grew 14% to $3.68 billion in Q3, while its GAAP EPS increased 17% to $0.36 and non-GAAP EPS jumped 26% to $0.58.
Perhaps most notably, Venmo processed around $17 billion of total payment volume in the third quarter, a massive 78% increase.
While this is a negligible revenue stream for the company that processes $143 billion via its main platform, the company recently made a move to further monetize its users. PayPal announced that starting on November 6, it would begin charging a 1% fee when Venmo account holders transfer money using their debit cards, with 30-minute transactions.
This decision, which will likely help boost PayPal’s revenue in coming quarters, has been the subject of much scrutiny, with competitors pointing out that transaction fees on bank transfers are a fairly antiquated idea in the peer-to-peer age.
PayPal is now trading at $84.78 with a $100.35 billion market cap. Shares of the company are up over 14% this year.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.