Reports show that PayPal Holdings Inc (NASDAQ: PYPL) raised concerns with the European Commission, causing the organisation to file an official complaint against Apple Inc (NASDAQ: AAPL).
The antitrust complaint argues that Apple abuses mobile payments via iPhones. It only allows users to use the tap-to-pay feature when paying for its services but doesn’t do the same for its competitors. PayPal is not the only company that launched a complaint against Apple. The company has a tap-to-pay feature on Android devices and wants it on Apple devices.
PayPal reduces its guidance for the rest of the year
Meanwhile, PayPal released its financial results leading to its stress going up by 13%. The company posted revenue of $6.5 billion. This figure was higher than the company’s revenue in 2021 and slightly higher than estimates. The company also lowered its guidance for the remainder of the year. Although this news disappointed investors, analysts believe that the worst is now out of the way for PayPal.
PayPal is one of the largest fintech companies globally. The company has managed to create a strong brand. Experts believe this makes the company the first choice for customers despite its competition from bigger tech companies like Apple and Alphabet Inc Class C (NASDAQ: GOOG) increases.
Investors have taken PayPal’s decision to lower profit views as a sign that inflation and the war on Ukraine could continue to affect payment volumes for the company. As inflation rises, customers in the U.S are using the platform less. Moreover, Western corporations like PayPal have chosen to boycott Russia to condemn its attack on Ukraine.
PayPal shuts its office in San Francisco
PayPal has also decided to shutter its office in San Francisco, which houses its Xoom business division. The company bought Xoom, which focuses on money transfer services and technology, in 2015.
The employees working at this office will not work virtually, with some working at PayPal’s headquarters in San Jose. PayPal states that it has made this move as it considers how to expand its global footprint in a way that would benefit it. Moreover, after the pandemic, the company learned other ways to work efficiently.
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