PayPal shares drop 5% as consumers cut back spending

Cost-of-living crisis driven by decades-high inflation has hit people's purchasing power

PayPal lowered its annual forecast as a fall-off in spending has in turn depleted the digital payments giant's revenues. Stock picture

Shares in PayPal dropped nearly 5% after the digital payments heavyweight lowered its annual revenue forecast, warning of a bleak quarter as consumers cut back on discretionary spends.

Decades-high inflation has hit the purchasing power of consumers who also have to contend with the threat of a looming recession.