PayPal adjusts reporting metrics to reflect growing card business
PayPal Holdings Inc. said late Tuesday that it would change the way it classifies total payment volume and active accounts, mainly to reflect the role co-branded cards now play for the company. Total payment volume will include volume from the company's merchant debit card program, which will now be included in "transaction revenues" rather than "other value added services" revenue. Active accounts will now include payments made or balances held on the company's co-branded cards. The company is trying to make its services appeal more to unbanked customers and COO Bill Ready recently discussed the company's cash card, which will allow customers to spend their PayPal balances in stores or with online merchants. PayPal will adjust past-period metrics to reflect the changes beginning with the company's next quarterly filing. PayPal said that the new definitions boosted last year's active accounts and total payment volume 1% from the numbers it reported in the annual filing. Net revenue wasn't affected. PayPal shares are unchanged in after-market trading and up 78% in the past 12 months, while the S&P 500 has gained 13%.
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