(Reuters) – PayPal Holdings Inc (NASDAQ) reduced its full year profit view Wednesday. It indicated that rising inflation and conflicts in Ukraine might have an effect on the payments volumes of the company.

According to the company, it anticipates an adjusted profit of between $3.81 & $3.93 per share. This is down from its earlier forecast of $4.60 – $4.75 per shared.

Inflation has been at its highest point in years, and customers have begun to tighten their belts. It is putting pressure on the earnings of PayPal.

It is expected that the company will also take financial losses from the decision to participate in the Western corporate boycott against Russia due to the Ukraine invasion, which Moscow called a “special operations.”

According to Refinitiv data, PayPal revenue increased 8% to $6.5 Billion on an FX neutral base in the first three months. This is just a narrow margin from Wall Street’s estimate of $6.6 Billion.

In the first quarter of 2018, payments totaled $323 billion. This is an increase of 15% over the previous year. Venmo, a PayPal app that lets Americans send and receive money to each other, saw a jump of 12% in the amount of payments to $57.8 Billion.

PayPal reported a adjusted profit of 88c/share, which was consistent with analysts’ estimates.

The company said it expected an adjusted profit of 86 cents per share in the current quarter, below analysts’ estimates of $1.12 per share.