Paypal reports record profits as digital payments boom

Paypal has announced it has beat profit estimates with the strongest first quarter in its history after the pandemic drove a shift to digital payments.

The company published strong results for 2020 and has started 2021 strongly, processing $285 billion in payments so far, up 50 per cent year-on-year.

Paypal also added over 14 million new active customers to its userbase.

“Our strong first-quarter results demonstrate sustained momentum in our business as the world shifts into the digital economy,” Paypal chief executive Dan Schulman said in a statement.

READ MORE: PayPal CEO predicts “tremendous decline in the use of cash” within the next 10 years

The company has come out on top during the pandemic as the switch to ecommerce has meant a large amount of business for the California based company.

Paypal also took advantage of the boom in cryptocurrency, enabling its users to buy, hold and sell currencies in their PayPal wallets.

Paypal’s sister app Venmo, which allows users to easily send money between accounts in the US, processed $51 billion in payments in the quarter, up 63 per cent.

The payment giant said it hoped to add up to 55 million net new active accounts before the end of this year despite its upcoming separation from ecommerce platform Ebay.

The company reported net income of $1.22 per share, which beat analysts’ predictions of $1.01 per share.

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