How will the new rules hurt Walmart and Amazon? The Indian government recently updated its policies for foreign direct investments (FDI) in e-commerce platforms, and the changes could throttle Walmart (NYSE: WMT) and Amazon.com's (NASDAQ: AMZN) growth in the country. The new rules, which go into effect on Feb. 1, will ban online retailers from offering exclusive sales, prevent them from selling products in which they own equity interest, and introduce new restrictions on discounts and cashback offers. The rules are aimed at helping smaller retailers compete more effectively against Walmart's Flipkart and Amazon. The new FDI rules could hurt Flipkart and Amazon in several ways. First, both companies frequently partner with big brands to launch platform-exclusive sales, especially for smartphones. Amazon previously launched an exclusive sale withXiaomi (NASDAQOTH: XIACF), and Flipkart did the same with Oppo. The new rules wil...
PayPal Holdings has reported a third-quarter profit that beat analysts' estimates as the company signed up more new customers and volume of payments processed rose.
Net income rose to $436 million in the third quarter, from $380 million a year earlier. Revenue rose to $3.68 billion from $3.24 billion.
For the fourth quarter, PayPal expects revenue between $4.20 billion and $4.28 billion, in line with analysts' estimates of $4.21 billion estimate.
Shares of the company, which separated from e-commerce site eBay in 2015, were up 7% in trading after the bell on Thursday.
In September it completed the purchase of Swedish payments firm iZettle, its largest ever acquisition.
"As pleased as I am with our financials, the highlight of the quarter was our growth in net new actives and engagement," PayPal Chief Executive Dan Schulman said on a call with analysts.
The company added a record 9.1 million new active accounts in the third quarter, compared to an increase of 8.2 million a year earlier.
PayPal processed $143 billion in payments over the period, up 24% from a year earlier. Venmo, its peer-to-peer payment app popular with younger consumers, processed $17 billion of payments in the third quarter, growing 78%. And while it is still early, our monetization efforts appear to be reaching a tipping point," Schulman said.
He added that 24% of Venmo users have now participated in a "monetizable action," up from 17% last quarter.
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