PayPal reported revenue growth for the third quarter of 13% on Monday and said it’s teaming up with Amazon to let U.S. customers pay with Venmo at checkout, starting in 2022.After initially rising in extended trading, PayPal shares reversed course and fell 5% after the company issued a revenue forecast for next year that missed analysts’ estimates.
Total payment volume rose 26% to $310 billion for the quarter ended Sept. 30, and the company added 13.3 million net new active accounts, bringing the total to 416. Venmo app, which began supporting cryptocurrency services in April, saw payment volume jump 36% to $60 billion. Customers in the U.S. can buy, sell, and check out with digital currencies. With its network of 33 million retailers, crypto ambitions have positioned the company as a rival to Coinbase, the country’s most popular crypto exchange.
For the fourth quarter, PayPal sees adjusted earnings of $1.12 per share on net revenue of between $6.85 billion and $6.95 billion. Analysts surveyed by Refinitiv had expected $1.27 in adjusted earnings per share on $7.24 billion in revenue. Revenue guidance for the year was revised down to 18%, putting it in the range of $25.3 billion to $25.4 billion. Analysts had expected $25.78 billion.