PayPal first quarter estimates have beat all expectations and estimates. This is as a result of the shift to online methods of carrying out transactions and acquiring goods and services induced by the coronavirus pandemic and the lockdowns that followed. The company’s impressive first quarter earnings and profits continue from the impressive 2020 earnings the company recorded. PayPal also had an impressive financial year for 2020; the financial year was characterized by increase in levels of payment volumes, and all these were thanks to the pandemic.
In the first quarter alone, PayPal processed transactions worth $285 billion which was up by 50 percent from last year. PayPal also added about 14.5 million new active users.
PayPal is an e-commerce company. It handles payments between parties through online transfers. The company has been in existence since December 1998. The company has its headquarters in San Jose, California. PayPal was first established as Confinity and had its first public offering in 2002. The American company later became a subsidiary of eBay valued at 1.5billion. It became a stand-alone company in 2015.
Talking about the company’s impressive first quarter, the Chief Executive Officer; Dan Schulman said in a statement that “Our strong first quarter results demonstrate sustained momentum in our business as the world shifts into the digital economy”.
PayPal’s first quarter net income stood at $1.22 per share. This figure beat the estimate of $1.01 per share. The company’s revenue beat estimates also and rose by 31 percent.
PayPal is one of the many companies that have benefitted from the pandemic. This is because almost all human endeavors moved online. Purchase of goods and services, business meetings, and what have you, all moved online. Locked away in their homes, more people used the platform to purchase online and pay bills.
In a forecast, before the first quarter came to an end, PayPal revealed that it expected to only add 52 to 55 million net new active users. The company also expected increase in total payments volume to grow by 30 percent.
As more people begin to shift to online methods of shopping and completing transactions, companies like PayPal are expected to increase in active monthly users and earnings.