Paypal is one of the most popular payment processor companies in the world. Recently, they revealed their first-quarter earnings and they are better than the estimate. Analysts predicted only 41 cents increase, but the shares rose by 7 percent. This is due to the fact that the income of the company has increased by 5 percent from last year to $384 million.
The revenues of the company were also higher than expected with $2.975 billion, whereas only $2.94 billion were estimated.
Paypal aims to change the way individuals make payments. They wish to remove the cash payment model and change it to only a digital one. From what we see, it looks like the company’s popularity grows considerably on a monthly basis. Paypal reveals that they’ve registered more than 6 million new accounts only in the first quarter of 2017.
The company gets a nice cut from the transactions made in Facebook Messenger, Airbnb and Uber as it owns the payment processor Braintree.
Moreover, it also owns another popular payment platform known as Venmo. Since they’ve bought the company, they’ve doubled the total payments volume up to $6.8 billion from business partnerships. There is a 25 percent increase in total payments volume for the past year.
Paypal’s shares closed this Wednesday at $44.41, which is a 13% increase for one year. Now, the market cap of the company is evaluated at $54 billion. The world is advancing, and digital payments are becoming even more important. It looks like that the firm is going to stay on the top of the digital payment industry for years ahead.