Shares in PayPal jumped Monday in the first day after being spun off by eBay.
The online payments group’s market value was higher than its former parent.
At the closing bell on the Nasdaq exchange, PayPal was up by 5.42 percent at US$40.47, equating to a market capitalization of more than US$49 billion. The share price gained by another 1 percent in after-market trades.
Meanwhile, eBay was up by 2.4 percent to US$28.57, giving the auction giant a value of some US$34 billion at the end of formal trading for the day but the share price slipped slightly to US$28.38 after the market closed.
“We are excited to celebrate our listing day and embark on our next chapter,” PayPal chief executive Dan Schulman said in a release.
“As an independent company, we see a tremendous opportunity for PayPal to expand our role as a champion for consumers and partner to merchants, and to help shape the industry as money becomes digital at an increasingly rapid pace.”
The spinoff, announced last year, came after months of pressure from activist investor Carl Icahn, who had assailed eBay for poor management and claimed that keeping eBay tied with PayPal depressed the value of both units.
eBay acquired PayPal in 2002 for roughly US$1.5 billion in shares, integrating the payment service that had already been widely used for online auctions. PayPal had traded on the Nasdaq exchange prior to being acquired by eBay.
PayPal Holdings, Inc. (PayPal) is a technology platform company, which enables digital and mobile payments on behalf of consumers and merchants around the world. The Company focuses on its consumers, merchants, friends and family to access and move their money through its platform using various devices, such as mobile, tablets, personal computers and wearables. It provides businesses of various sizes to accept payments from merchant Websites, mobile devices and applications, and at offline retail locations through a range of payment solutions across its Payments Platform, including PayPal, PayPal Credit, Venmo and Braintree products.
The Company enables global commerce by providing payment solutions for approximately 162 million active customer accounts in over 200 markets. It enables the users to create an active customer account, which is a registered account that sends or receives at least one payment or payment reversal through its payments platform, excluding transactions processed through its gateway products, in the past 12 months. PayPal gateway products include Payflow Payments and Braintree products. The Company offers its customers to use their account to both purchase and be paid for goods, and to transfer and withdraw funds.
The Company enables its consumers to fund a purchase using a bank account, a PayPal account balance, a PayPal Credit account, a credit or debit card, or other stored value products, such as coupons and gift cards. Its PayPal and Venmo products offer its users to transfer funds to each other using various funding sources. It offers merchants an end-to-end payments solution that provides authorization and settlement capabilities. It enables its users to make transactions across various markets and networks. Its Payments Platform connects with financial institutions around the world, and allows consumers to make purchases using a range of payment methods. Its Payments Platform enables to engage in cross-border shopping by sending payments to each other in over 200 markets across the globe and in more than 100 currencies.
The Company competes with American Express, Discover, Visa and MasterCard.
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