PayPal caps off 2020 in style with record numbers

3 min read | February 04, 2021 03:03 PM AEDT | By Team Kalkine Media

PayPal caps off 2020 in style with record numbers

Q4 and full-year highlights

Its total payment volume for the fourth quarter soared 39% to hit $277 billion. Notably, the revenue grew 23%, reaching $6.12 billion. The company reported GAAP earnings per share (EPS) of $1.32 and non-Gaap EPS of $1.08, a rise of 29%. PayPal added 16.0 million new active accounts in the December 2020 quarter.

In its yearly report, PayPal delighted investors with the information that the company had recorded the most robust performance in 2020 in its history. Its total payment volume (TPV) grew 31% in 2020, reaching $936 billion. The revenue increased by 21% as PayPal closed books adding $21.45 billion in 2020. For the year 2020, PayPal added 72.7 million new active accounts on its digital payment platform.

The American online payment company expects the ongoing momentum to continue in FY21 with revenue expected to increase by $25.5 billion. The company also expects to add approximately 50 million active accounts in FY21.

Strategic Initiatives and Business Updates:

In 2020, the company released more products than ever before. The fintechgiant took a major step when it threw the hat in the cryptocurrency ring. Users can now buy, sell, hold cryptocurrencies through the PayPal platform. The company noted the users trading cryptocurrencies through its platform are using the services more often than before. Additionally, PayPal also entered the lucrative and fast-growing market of buy-now-pay-later.

In 2020, the company allowed its customers to split payments made for the purchases using its platform through its BNPL offering. Depending on their location, users can pay in three or more instalments.

Moreover, Schulman notes that PayPal witnessed a dramatic shift in consumer behaviour, reflecting an increased acceptance of the digital payment systems across the globe. PayPal received a boost of 377 million customers and merchants using its platform.

Having marked an outstanding finish to the challenging year, PayPal seems to have pleased investors. Its new addition of QR code was increasingly used in 2020 for safe, touch-free payments at various brick-and-mortar stores.

Note: All figures in US dollars unless specified.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.