Category: PYPL

PYPL – PayPal launches crypto service in the UK

PayPal Holdings Inc  (NASDAQ: PYPL) has launched a new service that allows its UK customers to buy, hold and sell cryptocurrency.

The service starts rolling out this week and marks the first international expansion of PayPal’s cryptocurrency offering outside of the US, the payment provider said in a statement.

“With a trusted brand like PayPal now making an entry, access, knowledge, and the exploration of cryptocurrency has the potential to become mainstream in the UK,” it added.

PayPal is reported to have over 2mln active users in the UK, the group’s highest penetration in Europe.

“The pandemic has accelerated digital change and innovation across all aspects of our lives— including the digitisation of money and greater consumer adoption of digital financial services,” said Jose Fernandez da Ponte, vice president and general manager, Blockchain, Crypto and Digital Currencies at PayPal.

“Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency.

“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support—and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”

PYPL – PayPal launches crypto buying and selling in the UK

A smartphone with the PayPal logo is placed on a laptop in this illustration taken on July 14, 2021. REUTERS/Dado Ruvic/Illustration

LONDON, Aug 23 (Reuters) – PayPal Holdings Inc (PYPL.O) will allow customers in the UK to buy, sell and hold bitcoin and other cryptocurrencies starting this week, the company said on Monday.

The roll-out, which marks the first international expansion of PayPal’s cryptocurrencies services outside of the United States, could inspire further mainstream adoption of the new asset class.

With over 403 million active accounts globally, the San Jose, California-based company is one of the largest mainstream financial companies to offer consumers access to cryptocurrencies.

PayPal launched cryptocurrency buying and selling in the United States early this year, later enabling customers to use their digital coin holdings to shop at the millions of merchants on its network.

The company hoped its foray into the new asset class would encourage global use of virtual coins and prepare its network for new digital currencies that may be developed by corporations and central banks.

“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support— and meaningfully contribute to shaping the role

digital currencies will play in the future of global finance and commerce,” Jose Fernandez da Ponte, vice president and general manager for blockchain, crypto and digital currencies at PayPal, said in a statement.

In the UK, PayPal’s service will rival that of established cryptocurrency exchanges such as Coinbase Global Inc (COIN.O), as well as well fintech startups such as Revolut.

Customers will be able to buy bitcoin, ether, litecoin and bitcoin cash through their PayPal wallets online or on the mobile app.

The move comes as more established financial companies have started offering their clients, both consumers and institutions, access to digital assets, amid rising cryptocurrency prices. read more

Reporting by Anna Irrera; editing by Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

PYPL – PayPal launches its cryptocurrency service in the UK

  • PayPal will let British customers buy, hold and sell digital currencies, starting this week.
  • It marks the first international expansion of PayPal’s crypto product since it launched in the U.S. last year.
  • PayPal is one of many firms taking a leap into the mostly unregulated world of cryptocurrencies.
PayPal has launched its cryptocurrency service in the U.K.

LONDON — PayPal is launching its cryptocurrency service in the U.K.

The U.S. online payments giant said Monday it would let British customers buy, hold and sell digital currencies, starting this week.

It marks the the first international expansion of PayPal’s crypto product, which first launched in the U.S. in October last year.

“It has been doing really well in the U.S.,” Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto and digital currencies, told CNBC. “We expect it’s going to do well in the U.K.”

PayPal’s crypto feature lets customers buy or sell bitcoin, bitcoin cash, ethereum or litecoin with as little as £1. Users can also track crypto prices in real-time, and find educational content on the market.

Like the U.S. version of the product, PayPal is relying on Paxos, a New York-regulated digital currency company, to enable crypto buying and selling in the U.K. PayPal said it has engaged with relevant U.K. regulators to launch the service.

A spokesperson for the Financial Conduct Authority, Britain’s financial services watchdog, was not immediately available for comment on the announcement.

Growing adoption

PayPal’s crypto service is similar to one from U.K. fintech firm Revolut. As is the case with Revolut, PayPal users can’t move their crypto holdings outside the app. Although Revolut recently started testing a feature that lets users withdraw bitcoin to their own personal wallets.

PayPal says its foray into crypto is about making it easier for people to participate in the market. “The tokens and coins have been around for a while but you had to be a relatively sophisticated user to be able to access that,” da Ponte said. “Having that on a platform like ours makes a really good entry point.”

The payments processor is one of many large finance companies taking a leap into the mostly unregulated world of cryptocurrencies. Despite ongoing concerns about price volatility, consumer protection and potential money laundering in the industry, major firms including Mastercard, Tesla and Facebook have been warming to crypto lately.

Read more about cryptocurrencies from CNBC Pro

Bitcoin, the world’s biggest digital currency, hit a record high of nearly $65,000 in April before tumbling below $30,000 in July as Chinese regulators extended a crackdown on the market. It has since recovered to a price of $48,400.

While PayPal started with crypto trading, the company is betting digital currencies will take a greater role in e-commerce in the long run. Earlier this year, PayPal started letting U.S. consumers use crypto to pay at millions of its online merchants globally. The firm also expanded crypto buying and selling to Venmo, its popular mobile wallet.

“We definitely have ambitions to continue to expand the product range in the U.S., the U.K. and other markets,” da Ponte said.

“We are very deliberate about starting with initial functionality, and then we’ll see where the market is going to take us. Different markets have different appetite for products.”

‘Britcoin’

The launch of PayPal’s crypto service in the U.K. also comes as regulators become increasingly wary about the rise of digital currencies. In June, the FCA banned the British subsidiary of Binance, the world’s largest crypto exchange, citing a failure to meet money-laundering requirements.

“It makes sense that, as there is increased consumer interest and increased volume, the regulators are putting more attention into this space,” da Ponte said, adding that PayPal has built “strong regulatory relations.”

Meanwhile, central banks are exploring the potential issuance of their own digital currencies, as cash use in a number of developed countries dwindles rapidly. In April, the U.K. Treasury and Bank of England said they would evaluate the potential launch of a digital version of the British pound, dubbed “Britcoin” by the U.K. press.

Da Ponte said central bank digital currencies, or CBDCs, were a “fantastic prospect” but it would take policymakers some time to iron out the key issues involved.

PYPL – Pomerantz Law Firm Announces the Filing of a Class Action Against PayPal Holdings, Inc. and Certain Officers – PYPL

NEW YORK, Aug. 21, 2021 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ: PYPL) and certain of its officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 21-cv-06468, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired PayPal securities between February 9, 2017 and July 28, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased or otherwise acquired PayPal securities during the Class Period, you have until October 19, 2021 to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

PayPal operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The Company’s services include, among others, PayPal Credit and certain debit card services. PayPal Credit is an open end (revolving) credit card account that provides a reusable credit line built into a consumer’s account with PayPal.

In 2015, PayPal settled regulatory claims with the Consumer Financial Protection Bureau (“CFPB”) arising from certain of its business practices related to PayPal Credit between 2011 and 2015.  Following this incident, the Company repeatedly asserted that it was remediating issues with its PayPal Credit business practices in accordance with its 2015 settlement with the CFPB.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) PayPal had deficient disclosure controls and procedures; (ii) as a result, PayPal’s business practices with respect to PayPal Credit remained non-compliant with applicable laws and/or regulations; (iii) PayPal’s practices regarding payment of interchange rates related to its debit cards were likewise non-compliant with applicable laws and/or regulations; (iv) accordingly, PayPal’s revenues derived from its PayPal Credit and debit card practices were in part the subject of improper conduct and thus unsustainable; (v) all the foregoing subjected the Company to an increased risk of regulatory investigation and enforcement; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On July 29, 2021, PayPal filed a quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission (“SEC”), reporting the Company’s financial and operating results for the second quarter of 2021.  In its quarterly report, PayPal disclosed investigations by the SEC and the CFPB.  Specifically, PayPal disclosed receipt of a Civil Investigative Demand from the CFPB related “to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services”; and that the Company has “responded to subpoenas and requests for information received from the [SEC] relating to whether the interchange rates paid to the bank that issues debit cards bearing our licensed brands were consistent with Regulation II of the Board of Governors of the Federal Reserve System, and to the reporting of marketing fees earned from the Company’s branded card program.” 

On this news, PayPal’s stock price fell $18.81 per share, or 6.23%, to close at $283.17 per share on July 29, 2021.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

SOURCE Pomerantz LLP

Related Links

www.pomerantzlaw.com

PYPL – SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of PayPal Holdings, Inc. – PYPL

NEW YORK, Aug. 11, 2021 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of (PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ: PYPL). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

The investigation concerns whether PayPal and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action] 

On July 29, 2021, PayPal filed a quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission (“SEC”), reporting the Company’s financial and operating results for the second quarter of 2021. In its quarterly report, PayPal disclosed investigations by the SEC and the Consumer Financial Protection Bureau (“CFPB”). Specifically, PayPal disclosed receipt of Civil Investigative Demands from the CFPB “related to Venmo’s unauthorized funds transfers and collections processes, and related matters” and “to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services”; and that the Company has “responded to subpoenas and requests for information received from the [SEC] relating to whether the interchange rates paid to the bank that issues debit cards bearing our licensed brands were consistent with Regulation II of the Board of Governors of the Federal Reserve System, and to the reporting of marketing fees earned from the Company’s branded card program.”

On this news, PayPal’s stock price fell $18.81 per share, or 6.23%, to close at $283.17 per share on July 29, 2021.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

SOURCE Pomerantz LLP

Related Links

www.pomerantzlaw.com

PYPL – Venmo Lets Users to Buy Crypto With Cash Back From Credit Card

PayPal’s peer-to-peer vending app Venmo unveiled a program Tuesday (Aug. 10) called Cash Back to Crypto, which allows customers using its credit card to automatically buy cryptocurrency using cash back earned from Venmo card purchases.

The company said in a news release that the feature expands on Venmo’s crypto functionality, while also giving consumers more choice in how they “can spend their cash back while allowing them to start exploring crypto within the Venmo environment they know and love.”

Customers can manage their cash back to crypto purchases in real time, and can switch the cryptocurrency of their choosing at any time. There are no transaction fees, with a cryptocurrency conversation spread built into monthly transactions.

“The introduction of the Cash Back to Crypto feature for the Venmo Credit Card offers customers a new way to start exploring the world of crypto, using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo,” said Darrell Esch, SVP and GM at Venmo.

Customers can enable the new crypto feature by visiting the Venmo credit card home screen, clicking rewards, and then “get started” to choose the crypto of their choice.

“With seamless auto-purchasing, once customers receive their cash back into their Venmo balance each month, those funds are used to automatically purchase their selected crypto with no action required,” the news release said. “Once complete, customers can choose to hold or sell the crypto within the Venmo app at any time.”

Venmo entered the crypto world in April, allowing its 77 million customers the chance to use bitcoin, Ethereum, Litecoin and Bitcoin Cash.

“Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have,” Esch said at the time.

Last year, the company’s customer behavior study found that more than 30 percent of Venmo users were already using crypto or equities. Of those customers, about a fifth of them began doing so during the COVID pandemic.

Read more: Venmo Users Can Now Buy, Sell And Hold Cryptocurrency

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PYMNTS DATA: 100 HEALTHCARE EXECS SPEAK OUT ON USING AI TO CURB FRAUD, WASTE AND ABUSE

About: Healthcare firms are losing 12 percent of their annual revenues to fraud, waste and abuse (FWA), yet few utilize artificial intelligence (AI) to address these issues due to cost concerns. In AI In Focus: Targeting Fraud, Waste And Abuse In Healthcare, PYMNTS surveyed 100 healthcare executives to learn how AI could actually help firms unlock savings by curbing costly false claims and false positives.



PYPL – PayPal Puts Together Crypto Support Team In Ireland

PayPal is building a “small team” of cryptocurrency experts in Ireland as the payments company increases customer offerings related to bitcoin and other digital currencies, Ireland’s “Independent” newspaper reported.

PayPal’s new hires in the Emerald Isle include experts in compliance and money-laundering prevention, the Independent reported.

The hiring will include positions in PayPal’s blockchain, crypto and digital currencies business unit, The Independent reported. When PayPal announced the formation of the business unit in March, Chief Executive Dan Schulman told publication Decrypt: “There is a ton of opportunity for us to be helpful in creating that next generation of infrastructure. That’s what this business unit is about.”

PayPal only lets customers use bitcoin and a few other cryptocurrencies, and in limited ways, but Decrypt reported Schulman’s prediction in the March interview that the company will expand its crypto-related offerings.

As of August 1, PayPal’s hiring page included crypto-related job openings in Dublin, Ireland and Dundalk, Ireland. One position is described in PayPal’s posting as having to do with financial crimes investigations and customer protection.

The company also is advertising for blockchain analytics experts at both of its Ireland locations.

Overall on August 1, PayPal listed more than two dozen openings for jobs whose title included the word “crypto.” The jobs were listed for offices in Washington D.C., California, New York City, Nebraska, Arizona, Florida, Guatemala and Israel.

The reasoning behind PayPal executives’ interest in beefing crypto capabilities was clear from remarks Schulman made speaking with analysts on July 29, when PayPal released its second fiscal quarter financial results.

“We continue to be really pleased with the momentum we are seeing in crypto,” Schulman said, according to PYMNTS’ report on the earnings.

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NEW PYMNTS DATA: SMART RECEIVABLES PLAYBOOK: EDUCATION EDITION

About: Three-quarters of respondents in PYMNTS’ Smart Receivables Playbook, a collaboration with Flywire, consider their own accounts receivable operations “somewhat” or “slightly” effective. The new findings from over 150 colleges and universities suggest academia needs to do more to keep pace with expanding digital payment capabilities.



PYPL – Paypal (PYPL) Beats Q2 Earnings Estimates

Paypal (PYPL Free Report) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 1.77%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $1.01 per share when it actually produced earnings of $1.22, delivering a surprise of 20.79%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Paypal, which belongs to the Zacks Internet – Software industry, posted revenues of $6.24 billion for the quarter ended June 2021, missing the Zacks Consensus Estimate by 1.29%. This compares to year-ago revenues of $5.26 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Paypal shares have added about 28.3% since the beginning of the year versus the S&P 500’s gain of 17.2%.

What’s Next for Paypal?

While Paypal has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Paypal was favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.16 on $6.48 billion in revenues for the coming quarter and $4.74 on $25.87 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet – Software is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

PYPL – PayPal Hires Chainalysis Exec To Lead Crypto Regulatory Affairs

Jesse Spiro, a former Chainalysis head of policy and regulatory affairs, will be working with PayPal’s crypto division, CoinDesk reported.

Spiro called his new job “extremely attractive and exciting” as PayPal helps to bring crypto more into the mainstream for payments, according to CoinDesk. He’ll be starting the position Aug. 2.

“At PayPal I’ll be supporting regulatory affairs for their crypto business, and I can’t tell you how exciting that is in relation to the future of crypto and what the future landscape is going to look like,” Spiro told CoinDesk

“The fact that PayPal has the global reach that they do, the technology and the resources behind them and the fact that as an MSB [money services business] of their size [they have] embraced cryptocurrency, I think it’s so exciting,” he added, per CoinDesk.

PayPal has had bitcoin buying and selling functionality since October, having planned it for months prior to that debut, CoinDesk reported.

Since then, PayPal has been a big advocate for crypto’s mainstream momentum. It has been working on hiring a crypto custodian and putting out crypto withdrawals as a service offered, according to CoinDesk.

PayPal’s devotion to crypto can be seen in statements from CEO Dan Schulman, who said in April that the PayPal cryptocurrency service could hit $200 million in volume in months.

According to Schulman, the amount of accounts with digital wallets with PayPal has hit over 375 million, with 30 million merchants as well.

Because of the skyrocketing numbers, Schulman said he thinks the platform now has a chance of competing against rivals in a much quicker manner.

He said there will be improvements in payments in the future, such as more changes in the next five years than in the previous 30 due to digital currencies becoming more common.

“We are moving into the era of digital currencies, and those digital currencies hold tremendous promise, whether these are cryptocurrencies or central bank digital currencies,” Schulman said.

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NEW PYMNTS DATA: GENERATION SUPERCONNECTED – THE COMING USER AUTHENTICATION SHIFT

About The Study: Superconnected consumers use a variety of connected devices to interact, shop and pay online, but say password-based authentication slows them down. PYMNTS surveyed 2,127 consumers and found that these highly connected, highly desirable customers want financial institutions (FIs) and merchants to ditch the password and provide a better and more secure way to authenticate themselves online.