Online payments firm PayPal Holdings has cut its annual revenue growth forecast in anticipation of an economic downturn.
PayPal also said it did not expect much growth in its U.S. e-commerce business during the holiday quarter.
PayPal is the owner of the popular Venmo payments app.
The San Jose, California-based company cut its adjusted growth outlook for the year to 10 percent from 11 percent previously.
PayPal Chief Executive Daniel Schulman blamed “a challenging macro environment, slowing e-commerce trends and an unpredictable holiday shopping season” for the company’s prudent forecast.
“We think that e-commerce is going to be pretty muted in the fourth quarter,” Schulman said in a post-earnings call.
Last week, payments giant Mastercard forecast weaker-than-expected revenue growth for the holiday quarter.
But Block Inc, a payments platform led by Twitter founder Jack Dorsey, posted a rise in quarterly revenue on the back of a strong online payments business.
PayPal posted a lower adjusted profit of $1.08 per share for July-September.
The company said it expects $900 million in cost savings this year and at least $1.3 billion next year.
“Their cost saving plans is taking hold but in the ultra-competitive payments world, market share gains don’t seem to be enough to placate investors,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.