PayPal is set to begin Nasdaq trading Monday for the first time as a publicly traded firm separate and independent from eBay Inc.
The payments firm for the second quarter ended June 30 posted a 16.1 percent increase in net revenue to $2.26 billion from $1.95 billion. Net total payment volume for the quarter rose 19.8 percent to $65.9 billion from $55.05 billion. Those results were disclosed on Thursday when eBay reported its results as a consolidated company — its two business units are payments and marketplace — for the last time.
Dan Schulman, president and chief executive officer of PayPal, said the company “will be focused on serving our customers, both merchants and consumers, in the way they need and not the way the current system dictates.”
Schulman explained that PayPal plans to “reimagine financial services, and leverage technology and mobile devices to do so, in order to make peoples’ financial lives simpler, easier, and less expensive, and by making it easier for merchants to do business.”
The company already has a lineup of products to enhance the payments process for merchants and consumers.
PayPal is highlighting its One Touch product for payment on a mobile device or via a desktop. The process allow for payment via a single touch, avoiding the need to input username, password and 16-digit credit card numbers. Shoppers can also visit the gift component of PayPal’s site to store, send and schedule a gift card. PayPal’s site also has a shopping hub where shoppers can find deals from select retail partners earmarked just for PayPal’s users.
On the credit side for consumers, PayPal Credit provides shoppers with access to credit at the time of purchase online. The company is also planning to offer an option that would allow large purchases to be divided into predictable, equal monthly payments. There’s also a no-interest possibility for certain purchases where full payment is completed within six months.
For businesses, the company is expanding its PayPal Working Credit program to partner with CFDA for more than 30 members of its incubator program. According to Pablo Rodriguez, head of global consumer initiatives, the program with CFDA will include “educating incubator participants about digital wallets, PayPal credit, PayPal Working Credit” and other service options.
PayPal Working Credit in general is a business loan program that provides fast funding to companies based on the business’s PayPal sales, without requiring a credit check. According to PayPal data, half of the businesses use the loan for inventory, although the funding can be used for other business needs such as warehouse expansion, seasonal hiring and marketing and promotion.
The payments firm also has peer-to-peer options, such as through Venmo, that let users pay friends and family, such as when splitting a bill or group gift. Further, starting Dec. 1, it will participate in #GivingTuesday for the fourth year in a row, when the company will add an extra 1 percent on top of every donation made through its holiday giving site during December.
PayPal has more than 169 million active customer accounts. Activist investors, including Carl Icahn, had pushed for eBay to split itself into two companies.
PayPal will trade Monday under the stock ticker “PYPL,” the same symbol it used when it first went public in 2002 before it was acquired by eBay for $1.5 billion.