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PayPal Cuts Annual Forecast as Spending Growth Continues to Slow

  • Payments volume, revenue, earnings targets are scaled back
  • Existing customers are using PayPal’s app more frequently
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PayPal Reduces Guidance as Spending Growth Slows
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PayPal Holdings Inc.’s vow to rein in costs and push to boost profits cheered investors even after executives lowered targets for the firm’s performance this year. 

The payments giant said it would focus on simplifying operations as it warned that it now expects revenue for the year to only climb as much as 13%, compared with an earlier target of up to 17%. The move came after revenue for the first three months of the year climbed 8% to $6.5 billion, beating the $6.4 billion average of analyst estimates compiled by Bloomberg.