Pegged to the U.S. dollar, this currency is defined as a stablecoin as it is designed to be protected from the volatilities that cryptocurrencies tend to experience, thereby making it easier to use for digital payments and as a store of value.

Backed by U.S. dollar deposits and short-term U.S Treasuries, PayPal USD is set to be issued by Paxos Trust Co, the company revealed. PayPal added that this currency will be gradually rolled out in the United States.

Last month, a U.S. congressional committee came close to passing a bill to establish a legal framework to govern stablecoins however this motion ultimately fell apart.

This isn’t the first occasion that a major player in payments has pushed the usage of digital currencies. In 2021, Visa announced that it would allow the usage of the cryptocurrency USD Coin for transactions on its payment network.

The post PayPal Launches Stablecoin in Crypto Push appeared first on theprimarymarket.com.

The company reported an adjusted operating margin of 21.4% for the quarter, below estimates of 22% as indicated by data from Refinitiv IBES. Following the release of the report, the online payments company revealed its decision to reduce its adjusted margin forecast for the full year, causing concern for investors.

Revenue for the three months ended June 30 was $7.3 billion, compared to $6.8 billion last year. Still, the company’s operating margin stood at 21.4%, falling short of a forecasted 22%.

For the third quarter, PayPal expects a revenue of about $7.4 billion, above analysts’ estimates of $7.32 billion. The company’s forecasted adjusted profit per share for Q3 is in the range of $1.22 and $1.24, with analysts expecting $1.22 per share.

The post PayPal Stock Falls Following Cool Q2 Earnings Report appeared first on theprimarymarket.com.

Late last week, PayPal issued an update to its policy that contained an unusual prohibition of “sending, posting, or publication of any messages, content, or materials” that contain “misinformation,” as that company put it. The users who would be found “guilty” of spreading “misinformation” were risking a $2,500 fine.

As soon as users discovered the clause, it became a hot topic on social media. PayPal faces significant criticism for the decision, prompting the company to backtrack on its original plan and try to clear things up.

“PayPal is not fining people for misinformation, and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused,” a Paypal spokesperson said in a statement.

Mistake or not, this controversy did quite damage to PayPal’s public image and sent the company’s stock on a downward trajectory. The shares of PayPal have dropped 5.68% to start the week compared to the $90.17 per share close on Friday. The stock is 56.37% down year-to-date.

The post PayPal Backtracks on its Decision to Fine Users $2,500 for “Misinformation” appeared first on theprimarymarket.com.

It is considered that the decision was made as a result of pressure from activist investor Elliott Management. The investment management firm has a $2 billion stake in PayPal, with the two sides recently entering into an information-sharing agreement. 

PayPal’s efforts to cut down on spending will include real estate consolidation, project cutbacks, and layoffs. The company’s job cuts, which have been already underway, are projected to save the company up to $260 million this year alone. However, there have also been significant costs related to this activity, with PayPal spending $71 million on layoffs and restructuring in Q2. An additional $15 million is expected to be spent on job cuts and restructuring activities moving forward.

The news about PayPal’s plans has been well received by investors. The company’s shares jumped 9.25% on Wednesday, closing at $97.92 per share. And many analysts, including Wells Fargo’s Jeff Cantwell, believe this is just the beginning.

“We think shares go higher given the significant changes being made by management, which we expect will positively impact PayPal going forward,” Cantwell told clients in a note shared on Tuesday.

The post PayPal Aims to Save Up to $900 Million by Cutting Costs in 2022 appeared first on theprimarymarket.com.

Pegged to the U.S. dollar, this currency is defined as a stablecoin as it is designed to be protected from the volatilities that cryptocurrencies tend to experience, thereby making it easier to use for digital payments and as a store of value.

Backed by U.S. dollar deposits and short-term U.S Treasuries, PayPal USD is set to be issued by Paxos Trust Co, the company revealed. PayPal added that this currency will be gradually rolled out in the United States.

Last month, a U.S. congressional committee came close to passing a bill to establish a legal framework to govern stablecoins however this motion ultimately fell apart.

This isn’t the first occasion that a major player in payments has pushed the usage of digital currencies. In 2021, Visa announced that it would allow the usage of the cryptocurrency USD Coin for transactions on its payment network.

The post PayPal Launches Stablecoin in Crypto Push appeared first on theprimarymarket.com.

The company reported an adjusted operating margin of 21.4% for the quarter, below estimates of 22% as indicated by data from Refinitiv IBES. Following the release of the report, the online payments company revealed its decision to reduce its adjusted margin forecast for the full year, causing concern for investors.

Revenue for the three months ended June 30 was $7.3 billion, compared to $6.8 billion last year. Still, the company’s operating margin stood at 21.4%, falling short of a forecasted 22%.

For the third quarter, PayPal expects a revenue of about $7.4 billion, above analysts’ estimates of $7.32 billion. The company’s forecasted adjusted profit per share for Q3 is in the range of $1.22 and $1.24, with analysts expecting $1.22 per share.

The post PayPal Stock Falls Following Cool Q2 Earnings Report appeared first on theprimarymarket.com.

Late last week, PayPal issued an update to its policy that contained an unusual prohibition of “sending, posting, or publication of any messages, content, or materials” that contain “misinformation,” as that company put it. The users who would be found “guilty” of spreading “misinformation” were risking a $2,500 fine.

As soon as users discovered the clause, it became a hot topic on social media. PayPal faces significant criticism for the decision, prompting the company to backtrack on its original plan and try to clear things up.

“PayPal is not fining people for misinformation, and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused,” a Paypal spokesperson said in a statement.

Mistake or not, this controversy did quite damage to PayPal’s public image and sent the company’s stock on a downward trajectory. The shares of PayPal have dropped 5.68% to start the week compared to the $90.17 per share close on Friday. The stock is 56.37% down year-to-date.

The post PayPal Backtracks on its Decision to Fine Users $2,500 for “Misinformation” appeared first on theprimarymarket.com.

It is considered that the decision was made as a result of pressure from activist investor Elliott Management. The investment management firm has a $2 billion stake in PayPal, with the two sides recently entering into an information-sharing agreement. 

PayPal’s efforts to cut down on spending will include real estate consolidation, project cutbacks, and layoffs. The company’s job cuts, which have been already underway, are projected to save the company up to $260 million this year alone. However, there have also been significant costs related to this activity, with PayPal spending $71 million on layoffs and restructuring in Q2. An additional $15 million is expected to be spent on job cuts and restructuring activities moving forward.

The news about PayPal’s plans has been well received by investors. The company’s shares jumped 9.25% on Wednesday, closing at $97.92 per share. And many analysts, including Wells Fargo’s Jeff Cantwell, believe this is just the beginning.

“We think shares go higher given the significant changes being made by management, which we expect will positively impact PayPal going forward,” Cantwell told clients in a note shared on Tuesday.

The post PayPal Aims to Save Up to $900 Million by Cutting Costs in 2022 appeared first on theprimarymarket.com.