PayPal Holdings Inc. (NASDAQ: PYPL) managed to beat Wall Street’s estimates across the board with its third-quarter results. The company reported adjusted earnings of 61 cents per share on $4.38 billion in revenue for the quarter. Analysts expected adjusted earnings of 52 cents per share on $4.35 billion in revenue.
Its mobile payment app Venmo witnessed substantial growth in transactional volumes, seeing 64 percent growth in payment volume year over year. Venmo processed more than $27 billion in the quarter. This amounted to a transactional value of approximately $300 million per day.
Shares of the payment company closed more than 8 percent higher after the earnings release. The stock has risen 24 percent so far this year. It had lost 20 percent between the June-quarter report and the September-quarter one just delivered.
PayPal also announced that it had received permission from the People’s Bank of China to acquire a 70 percent stake in Shanghai-based GoPay. PayPal will become the first licensed foreign-payment platform to operate in the vast Chinese online payment market after the closure of the deal.
The deal will also open a door for PayPal to increase its engagement with China Union Pay, AliExpress, Chinese technology platforms, and other financial institutions in China. The deal for GoPay is expected to close in December.
PayPal has also finalized partnerships with Lime, a global auto rental platform, and Epic Games. With Lime, PayPal has developed a way for Lime’s freelancers to receive their payments. Users of Epic Games can link their cards to their digital payment account to make online purchases.
PayPal also reached an agreement with the Travelers Companies in July. Now, Travelers’ customers from its Auto Insurance, Property Insurance, and General Insurance segments have the option to receive their insurance claims in their PayPal accounts.