San Jose, July 30 (V7N) – Digital payments giant PayPal has raised its full-year profit forecast after reporting better-than-expected second-quarter earnings. However, the news was overshadowed by concerns over slowing branded checkout volume growth and the impact of global trade tensions on e-commerce.
 
In Q2, PayPal’s branded checkout growth slowed to 5%, down from 6% in the previous quarter, and was flat compared to the same period last year. Total payment volume rose 6% year-on-year to $443.5 billion, while transaction margin dollars increased by 7% to $3.8 billion.
 
Venmo, the company’s peer-to-peer payments service, performed strongly, showing nearly 20% revenue growth.
 
The company now expects its adjusted earnings per share for 2025 to be between $5.15 and $5.30, up from the earlier forecast of $4.95 to $5.10. It also raised its outlook for transaction margin dollars to a range of $15.35–$15.50 billion.
 
Despite the improved forecast, PayPal shares fell by 8% in early trading. Investors remain cautious due to persistent concerns over rising tariffs, reduced consumer spending, and growing competition from rivals like Apple Pay and Google Pay.
 
CFO Jamie Miller said the company is closely monitoring global trade developments and warned of potential headwinds from interest rate cuts in the second half of the year.
 
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