PayPal Holdings Inc. reported a better-than-expected 18.1 per cent rise in quarterly revenue and its margin forecast allayed concerns over costs associated with its payment network deals with MasterCard Inc. and Visa Inc. PayPal’s shares were up 4.2 per cent at $41.78 (£34.15) in after-hours trading.
The payments processor said in presentation slides that it expects adjusted operating margin to be stable or higher in the next three years.
According to BTIG analyst, Mark Palmer, “With one slide in its deck, PayPal largely addressed investors’ concerns about the impact of the Visa and MasterCard deals on its margins”.
PayPal signed deals with Mastercard Inc. and Visa Inc. earlier this year for store payments, leading to some concerns that they would result in higher transaction expenses for the company.
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