PayPal CEO Credits Cryptocurrencies For Massive Returns in Revenue
PayPal CEO, Dan Schulman, has attributed its recent success to the decision to offer crypto services on its payments app in October last year.
Following the recent earnings report for the Q1 2021 published on May 5th, PayPal’s CEO, Dan Schulman, commented on the unexpected figures the company posted, and how cryptocurrency inclusion has a lot to do with that surprise.
Cryptocurrency Behind PayPal’s Surprising Profits
Last year October, the giant payments company revealed to customers in an official press release that a number of cryptocurrency services would be offered on its platform. The added service would allow PayPal customers to buy, hold, and sell cryptocurrency on their mobile apps and elsewhere.
Although the development caused a series of mixed reactions across several camps last year in PayPal’s community, after the announcement, none of that seemed to deter the new target audience, as the app gained more than 16 million fresh users within the space of three months.
After PayPal posted a net income of $84 million for the first quarter of 2020, data and analytics company, Refinitiv, projected a $5.9 billion total revenue income for Q1 2021. An optimistic projection which made sense following PayPal’s strong growth towards the end of the last quarter.
PayPal’s growth has progressed into the new year, shattering even lofty expectations along the way to mark new success. According to its published reports, the company made a total revenue of 6.03 billion USD for the first quarter, 100 million more than Refinitiv’s projected revenue. Compared to the 84 million USD in total profit made by Papal in Q1 2020, the payments company has recorded considerable growth within a year its gains surged by more than 1200 percent over a YOY basis.
The increase is a massive surprise, and PayPal CEO, Dan Schulman, thinks cryptocurrencies had a major role to play in the recent success.
“We’ve got a tremendous amount of really great results going on tactically with our crypto efforts,” Schulman explained in an interview. Schulman also revealed that crypto users on PayPal were also more likely to open their PayPal apps at least once a day than other users, a development that Schulman was glad to welcome.
PayPal to Leverage More Crypto Inclusions
Schulman is not letting the hype die down just soon. While PayPal’s subsidiary app, Venmo, only just launched its crypto services to 70 million of its users two weeks ago, Schulman revealed the company will still be working to integrate more cryptocurrency solutions into their apps.
According to Schulman, PayPal’s “next generation digital wallet” is set to be released in the third quarter of 2021.