Shareholders of PayPal have sued firm directors implying that management falsified statements in quarterly reporting related to Venmo; as a subsidiary of PayPal, Venmo's business activities influence the overall results of the firm; in 2016 Venmo was investigated for unfair and deceptive practices resulting in a fine and ongoing investigations with the FTC; shareholders are arguing that PayPal did not properly disclose and inform shareholders of the implications of the investigations which led to shareholder losses of approximately 15%. Source
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PayPal CEO Dan Schulman is committed to helping support and promote financial inclusion by democratizing financial services and making banking activities more broadly available to everyone; the company is well positioned to support this initiative with more than six billion transactions occurring on its platform annually; Schulman provides some metrics around the benefits of digital transactions noting that the typical underserved population spends 10% of its disposable income on unnecessary fees and interest rates and with technology the cost of basic transactions can be lowered by as much as 80% to 90%.
PayPal's fourth quarter earnings release revealed a number of interesting developments for the company; the firm has been steadily growing its partnerships with e-commerce businesses which has helped increase the number of payment transactions per customer; in the fourth quarter PayPal reported 31.1 transactions per active customer which was an increase from 30.2 in the previous quarter and 27.5 in the comparable quarter; PayPal's CEO Dan Schulman has also discussed a new partnership with Amazon that would allow Amazon customers to pay for purchases with PayPal which would further support increases in its customer account activity. Source
