What's going on?

PayPal reported worse-than-expected results late on Monday, as the payment app realizes that the only way to get over eBay might be to get under Amazon.

What does this mean?

PayPal�s former owner, eBay, spun the payment company off six years ago, but they�ve kept working closely together ever since. Now, though, eBay is transitioning toward its very own payments system. That ghosting was evident last quarter, when eBay�s users spent 45% less via PayPal than they did the same time the year before. Throw in the fact that payments on PayPal�s cash transfer app Venmo grew by a weaker-than-expected 36%, and the firm�s total revenue only climbed by 13%.

PayPal�s revenue outlook for the rest of the year was disappointing too, mostly because the company�s worried that supply shortages and the return of in-store shopping could dent ecommerce activity. Needless to say, investors aren�t confident either: they initially sent its stock down 5%.

Why should I care?

The bigger picture: A more supportive relationship.
PayPal reckons Venmo could be its biggest source of revenue in the future, and it�s laying the groundwork to make that happen: the company just announced that Amazon would be introducing the transfer app as a payment option next year (tweet this). And since Venmo has been supporting crypto payments since April, the move might bring Amazon one step closer to learning some new tricks too�

Zooming out: Crypto�s the place to be.
Amazon would be wise to think about integrating crypto payments: the market�s now worth over $3 trillion, with bitcoin and ether each reaching all-time highs on Tuesday. That might partly be down to the launch of the first US bitcoin-ETF last month, which has introduced more people to the OG cryptocurrency and inspired hopes that more crypto ETFs are in the pipeline. The US Federal Reserve�s still skeptical, mind you: it warned investors this week that risky assets like crypto are particularly susceptible if the still-peaky economy takes a turn for the worse.