The digital payments processor is benefiting from its peer-to-peer payment tool business after cutting 2,000 employee jobs.
Digital payments pioneer PayPal Holdings sought to allay fears about slowing growth during an earnings report Tuesday by pointing to improvements for its peer-to-peer brand Venmo and diversification of revenue streams.
The company’s third-quarter earnings report showed mid-teen growth for Venmo transaction volume helped lift overall results, buffering slower single-digit growth at its legacy checkout brand. The number of Venmo debit card holders jumped by about 55% to 6.7 million monthly active accounts, including 1.6 million who used it for the first time in the quarter, PayPal CEO Enrique Lores said during a conference call with analysts to discuss the results.
“We are building on the strength of the Venmo brand to broaden adoption of financial services, deepen customer relationships and increase (average revenue per account),” Lores told analysts during the company’s conference call.
Lores, who took the top post in March, has sought to jump-start growth and profitability at the early innovator in digital payments as the field of fintech competitors mushrooms. He’s the third person to hold the job in as many years as the company has struggled with stagnating growth amid volatile economic conditions and rising competition.
To bolster the bottom line, the company embarked this year on reducing management layers and cutting its headcount. It has eliminated some 2,000 jobs, as it adds more artificial intelligence tools to automate some parts of the operation, Lores told analysts.
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