PayPal’s PYPL third-quarter 2024 earnings, set to be released on Oct. 29, are expected to have benefited from an improving Total Payment Volume (TPV). The metric is expected to have gained from a strong relationship between the company and its merchants and consumers.

PayPal’s two-sided platform helps develop direct financial relationships with customers and merchants. In second-quarter 2024, TPV improved 11% year over year on a spot rate, as well as on a currency-neutral basis, to $416.81 billion.

The Zacks Consensus Estimate for TPV is pegged at $421.317 billion, indicating 8.7% year-over-year growth.

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Click here to learn how PayPal’s overall third-quarter performance is likely to be.

Expanding Clientele to Aid PYPL’s Q3 Results

PayPal is riding on an expanding clientele thanks to a strong product portfolio. Strong monetization efforts of Venmo are likely to have aided its adoption rate in the to-be-reported quarter.

PYPL has been benefiting from solid execution, payment platform enhancement and customer strategies. PayPal’s solid prospects in the cryptocurrency space are other positives.

Its comprehensive payment ecosystem, which connects merchants and customers seamlessly, is expected to continue bolstering its competitive position against its closest peer, Block SQ, as well as traditional fintech companies like MasterCard and Visa.

The growing momentum of the PayPal Complete Payments platform is a positive. The company is gaining strong momentum across small and medium-sized businesses with the PayPal Complete Payments platform. The expansion in the platform’s geographic reach to more than 34 countries is a major positive.

Strength in Braintree is a tailwind. PYPL is witnessing rising unbranded transactions processed through Braintree, which is noteworthy.

For the third quarter, the consensus mark for Active Customer Accounts is pegged at 430 million, indicating 0.5% year-over-year growth.

Rich Partner Base to Boost PYPL’s Top-Line Growth

A strong partner base that includes Apple, Alphabet, Fiserv FI and Shopify SHOP is expected to have benefited PayPal’s top-line growth in the to-be-reported quarter.

PayPal teamed up with Fiserv to streamline checkout experiences in the United States. This partnership allows Fiserv clients to enable PayPal, Venmo and related services seamlessly and provides these businesses with a simple connection point to Fastlane by PayPal to accelerate guest checkout flows.

The expansion of PayPal’s global strategic partnership with Shopify is noteworthy. As part of the extension, PYPL’s wallet transactions were integrated into Shopify Payments in the United States. This Zacks Rank #3 (Hold) company has become the online credit and debit card processor for Shopify Payments through PayPal Complete Payments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.