PayPal shares were down by over 7% in pre-market trading on Thursday, hit by news that eBay had signed up a different firm as its primary payment processor.
eBay revealed it would begin processing its global payments through Dutch firm Adyen, though also said eBay shoppers would have the option of continuing to use PayPal for payments until 2023.
PayPal shares were additionally pressured as the company reported disappointing guidance for the first quarter. This was despite PayPal beating fourth-quarter results.
Dan Schulman, chief executive of PayPal sought to allay worries over the changing relationship with eBay, the company´s former parent, describing this as “manageable.”
PayPal has been steadily widening its customer base since it was spun out of eBay in 2015, having been predominantly focused on processing payments for eBay.
However, eBay continues to represent about 13% of its sales.
PayPal reported a 59% jump in earnings year on year for the final three months of 2017, to $620m, a result that beat consensus forecasts.
Quarterly revenue rose 26% to $3.74bn year on year.
“PayPal had a transformative year in 2017. We brought record numbers of new customer accounts to our platform by democratizing financial services for consumers and commerce capabilities for merchants. We also substantially expanded our opportunities for future growth and redefined our competitive position through our successful partnership strategy driven by our open platform architecture,” said Schulman.