News
Wednesday, October 29, 2025
What’s happening: Shares of PayPal Holdings rose sharply on Tuesday, after the company released its third-quarter results.
What happened: The digital payments firm posted better-than-expected sales and earnings for the latest quarter.
PayPal announced a collaboration with OpenAI, raised its guidance and initiated a dividend plan.
How were the results: The San Jose, California-based company reported single-digit sales growth for the third quarter.
Why it matters: With consumers becoming more selective in making purchases, PayPal saw a slight decline in payments activity during September and October across the US and Europe.
Although PayPal’s total payment volumes jumped 8% year-over-year to $458.1 billion in the third quarter, transactions fell by 5%.
On a trailing 12-month basis, the number of payment transactions per active account fell by 6%. The total number of active accounts rose by 1% to reach 438 million.
PayPal’s board approved a quarterly cash dividend program, with an initial dividend of 14 cents per share, with the payout representing around 10% of the company’s adjusted net income.
PayPal announced an ecommerce deal with ChatGPT-maker OpenAI. Under the partnership, ChatGPT users would be able to complete instant checkouts using a PayPal wallet. ChatGPT has over 800 million weekly users. PayPal had announced a similar agreement recently with Google.
“With hundreds of millions of users on both platforms, this is about making commerce inside AI chat feel seamless,” CEO Alex Chriss said.
PayPal guided to adjusted earnings of $1.27-$1.31 per share for the fourth quarter. For the full year, the company raised its adjusted earnings projection to $5.35-$5.39 per share, from its previous outlook of $5.15-$5.30 per share.
How shares responded: PayPal’s shares jumped 4% to close at $73.02 on Tuesday following the release of quarterly results. The stock has added around 5% over the past month.
What to watch: Concerns over the soft US jobs market and slower-than-expected interest rate cuts by the US Federal Reserve have weighed on consumer spending. Investors will watch the yearend holiday season, which is generally beneficial for payment firms.
Context: The CAD/USD forex pair gained this morning amid higher prices of crude oil.
Details: The CAD/USD forex pair received support from broad weakness in the US dollar. The US dollar index, which measures the greenback’s performance versus a basket of major peers, edged lower to 98.66 this morning.
Investors expect both the US Federal Reserve and Bank of Canada to cut interest rates by 25 basis points (bps). Both the central banks are scheduled to announce their policy decision later today.
Markets widely expect the upcoming rate cut to mark the end of the Bank of Canada’s monetary policy easing cycle.
Higher prices of crude oil, one of Canada’s major exports, lent further support to the loonie. WTI crude oil prices rose 0.2% to $60.26 a barrel this morning.
The CAD/USD forex pair gained around 0.1% to 1.3937 this morning. The S&P/TSX Composite Index has risen 0.48% to close at 30,419.68 on Tuesday.
What to watch: Investors await the announcement of Bank of Canada’s interest rate decision (1745 UAE Time) today.
Other Markets: US trading indices closed higher on Tuesday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.34%, 0.23% and 0.74%, respectively.
Russian forces gained a foothold in the strategic hub of Ukraine’s Pokrovsk region. The news sent the RUB/USD pair higher in forex trading this morning.
Chile’s central bank kept its benchmark interest rate unchanged at 4.75% at its recent meeting, which lent support to the CLP/USD forex pair.
Mexico’s unemployment rate rose to 3.0% in September, from 2.9% in the previous month, which sent the MXN/USD pair lower in forex trading this morning.
South Korea’s Business Survey Index for the manufacturing sector fell to 68 in October, from 70 in the previous month, exerting pressure on the KRW/USD forex pair.
Australia’s annual inflation rate accelerated to 3.2% in the third quarter, from 2.1% in the previous quarter. However, the AUD/USD pair rose in forex trading this morning.
Spain’s GDP growth rate (1200 UAE Time) and retail sales (1200 UAE Time), UK’s consumer credit (1330 UAE Time), mortgage approvals (1330 UAE Time), mortgage lending (1330 UAE Time), M4 money supply (1330 UAE Time), net lending to individuals (1330 UAE Time) and Treasury Gilt 2033 auction (1400 UAE Time), Italy’s 6-month BOT auction (1410 UAE Time) and PPI (1500 UAE Time), Germany’s 10-year Bund auction (1430 UAE Time), US MBA mortgage applications (1500 UAE Time), pending home sales (1800 UAE Time), EIA crude oil stocks change (1830 UAE Time), EIA gasoline stocks change (1830 UAE Time), EIA Cushing crude oil stocks change (1830 UAE Time), EIA distillate stocks change (1830 UAE Time), EIA heating oil stocks change (1830 UAE Time), 17-week Bill auction (1930 UAE Time), 2-year FRN auction (1930 UAE Time) and Fed interest rate decision (2200 UAE Time), Brazil’s bank lending (1530 UAE Time), India’s M3 money supply (1530 UAE Time), as well as Russia’s unemployment rate (2000 UAE Time), business confidence (2000 UAE Time), corporate profits (2000 UAE Time), real wage growth (2000 UAE Time) and retail sales (2000 UAE Time).