what happened
Shares of PayPal (NASDAQ: PYPL) climbed 7% on Thursday after announcing the excellent results of the digital payment leader in the fourth quarter.
Approximately
PayPal added 16 million net new active accounts during the quarter, bringing its total customer base to 377 million. This rapid increase in active users led to a 39% increase in total payment volume from 39% to $ 277 billion and a 23% increase in revenue to $ 6.1 billion.
Investors encouraged PayPal’s strong performance in the fourth quarter. Image Source: Getty Images.
PayPal’s profit growth was also impressive. Adjusted operating income and earnings per share of the fintech giant both rose 29% to $ 1.5 billion and $ 1.08 respectively.
“PayPal delivered record performance in 2020, as businesses of all sizes digitized in the wake of the pandemic,” CEO Dan Schulman said in a press release.
Now what
PayPal expects fiscal 2021 to be another year of rapid expansion. The company predicts it will get 50 million new active accounts. Management, in turn, saw 19% to about $ 25.5 billion and adjusted earnings per share up about 17% to $ 4.54.
As COVID-19 accelerates the growth of e-commerce around the world, PayPal’s digital payment solutions are likely to remain very popular in the coming years.