PayPal raises outlook as growth stalls

PayPal’s Q3 numbers beat expectations, but the real story is what’s beneath the surface. The company raised its profit outlook and delivered better-than-expected earnings, yet revenue growth remains sluggish at 2% and its flagship branded checkout is stuck at just 1% to 2% growth for the fourth quarter running. Freedom Broker cut its rating, flagging that PayPal’s profit gains are coming from cost-cutting—think layoffs and spending discipline—not from business acceleration. In a market where rivals like Block and Apple Pay are posting double-digit growth and lifting guidance, PayPal needs more than just margin wins.

Here’s the twist: PayPal is betting big on new distribution and use cases, like embedding itself in Africa’s KCB Bank app for seamless international payments and launching a sports partnership as the NFL’s official peer-to-peer payments partner. These moves could juice cross-border transactions and Venmo activity, but there’s a catch—if core checkout doesn’t reaccelerate, even splashy deals and new features might not close the gap with faster-growing peers. Meanwhile, its BNPL product finally lands in-store at major Australian retailers, but faces fierce competition and questions about whether entering the physical checkout lane will cannibalize its online economics.

Based on reporting from Reuters, TechAfrica News, Mi-3.com.au, and Yahoo Finance Australia.

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