Reuters/Robert Galbraith/File Photo
PayPal Holdings Inc (PYPL.O) on Thursday showed strong growth in its online payments business, meeting Wall Street expectations on earnings and announcing a partnership with Visa Inc (V.N) that is expected to bring a significant revenue increase.
Second-quarter earnings rose to 36 cents per share, in line with analysts’ expectations, and year-over-year revenue growth rose 15 percent to $2.65 billion.
The company also unveiled a partnership with Visa – a deal for which investors had been eager – intended to make it easier for PayPal customers to use Visa credit cards in their transactions and allow shoppers to use PayPal in brick-and-mortar retail locations.
“A collaboration between PayPal and Visa could present a formidable obstacle to Apple Pay (and) Google Wallet,” said Charles King, principal analyst at Pund-IT.
PayPal shares were up about 2 percent in after-hours trading after closing at $40.13 on the Nasdaq.
(Reporting by Heather Somerville in San Francisco; Editing by Matthew Lewis)