PayPal Holdings stated that quarterly sales between January and March 2021 amounted to $6.03 billion, up 31% year-on-year.
According to CNBC and CNN, PayPal reported in its quarterly settlement announcement from January to March this year. The total quarterly settlement was $285 billion, up 50% from the same period last year.
The media pointed out that the expansion of online consumption and the spread of payment methods in place of cash. This is due to COVID 19 which affected PayPal’s sales and payments to increase significantly.
PayPal’s quarterly net profit also jumped 13 times from the same period last year to $1.09 billion.
Net income per share was $1.22. It is more than analysts’ expectation of average $1.01.
Due to the spread of Covid-19, e-commerce and digital payments have grown rapidly.
PayPal CEO Dan Schulman said, “With digital payments, the flow of transition will not change even after Covid-19 calms down.”
At the end of March, the number of PayPal accounts worldwide stood at 392 million, up 4% from the end of 2020.
John Laney, chief financial officer (CFO), stressed, “EC consumption is exceeding the level before the pandemic in each country as economic activities are in full swing due to the Covid-19 vaccination.”
PayPal predicted that overall sales will increase by 20% in 2021.
Between January and March, number of active users increased by 14.5 million. It is expected that number of active users will increase by 52 million to 55 million in 2021. By February, it is predicted that this number will increase by 50 million.
Shares of PayPal surged in after-hours trading on Tuesday due to strong earnings.
PayPal is actively entering the cryptocurrency business. In October last year, it started a service that deals in four categories of Bitcoin, Ethereum, Lightcoin, and Bitcoin Cash (BCH) on PayPal app.
Last month, PayPal also started treating cryptocurrency in Venmo, a simple remittance service that has many young users.
PayPal also bought Curv, an Israeli stronghold that runs the business of managing and storing digital assets, in March.
