PayPal Reports Strong Financial Results for Q3 2024

Payments company PayPal reported third-quarter 2024 revenue of $7.85 billion, up 6% compared to the same period last year. Earnings per share came in at an adjusted $1.20, over and above analysts’ expectations of $1.07.

PayPal’s total payment volume reached $422.6 billion for the most recent quarter, representing a 9% uptick versus Q3 2023. Also up was the transaction margin, a measure of profitability, which increased from 45.4% to 46.6%. The number of active accounts also went up by 1% to 432 million.

“PayPal delivered strong financial and operating results during a highly productive third quarter,” said PayPal CEO Alex Chriss in the earnings release.

In the fourth quarter, PayPal predicts “low single-digit” percentage growth. Earnings per share will likely fall to an adjusted $1.07 to $1.11.

Under Chriss’ leadership, PayPal has been on a path toward growth. After taking the CEO position over a year ago, he has looked to improve the payments technology by utilizing artificial intelligence with a renewed focus on the consumer.

PayPal’s Transformation

Once the dominant player in the payments industry, PayPal has seen competitors like Zelle move in and swipe market share. To shore up its position, PayPal has been forming new partnerships and doubling down on new products.

PayPal has agreements in place with Fiserv and Global Payments to expand its reach within online checkout. Amazon also added PayPal as an option for Buy with Prime. To deter abandoned shopping carts, the fintech company launched Fastlane, a one-click payment option that rivals Apple Pay and Shopify’s Shop Pay.

Introduced in September, another innovative offering was a rewards program called PayPal Everywhere. Customers who use their PayPal debit card through the mobile app can get 5% cash back. Nearly 1 million new PayPal debit card enrollments have been initiated through the strategy.

“We are making solid progress in our transformation as we bring new innovations to market, forge important partnerships with leading commerce players, and drive awareness and engagement through new marketing campaigns,” noted Chriss.