PayPal aims to triple payment volume by 2025 with new financial services
PayPal aims to triple paymen...
Subscribe to Newsletter

PayPal aims to triple payment volume by 2025 with new financial services

13 February 2021
4036
2 min.
3
PayPal aims to triple payment volume by 2025 with new financial services

PayPal shares and targets

Shares in PayPal rose after the company announced plans to launch new financial services on its platform over the next two years, in particular stock trading and the creation of "high-yield savings accounts".

Shares in PayPal (PYPL), up 140.4% over the past year, rose after the close of trading on Thursday on the back of forward-looking statements from the company's management during an investor event.

PayPal has set ambitious targets for the next four years, given the success of its cryptocurrency service rollout and plans for further expansion, as well as plans to launch new financial services over the next two years. PayPal said it expects total payment volume (TPV) to triple by 2025 to $2.8 trillion. 2020 was a record year for PayPal in terms of payments processed, with total payments rising 30% to $936 billion. PayPal's 2020 earnings per share rose 31% to $3.88.

The company predicts that the number of active accounts will grow from 377 million currently to 750 million by 2025. PayPal also plans to generate $10 billion in annual free cash flow by 2025. In 2020, PayPal increased free cash flow by 48% to $5 billion.

PayPal executives also recently warned that some of the new initiatives have caused a spike in technology and development costs. Last year, such costs have already risen 27% to $2.64bn. However, the company said it expects profits to grow by 17% in 2021.

PayPal's plans

PayPal plans to become a one-stop platform for consumers and merchants to help manage their finances. The firm said new products could include share trading and high-yield savings accounts, as well as bill payment options and cheque cashing services. The firm's new digital wallet will be divided into a financial services tab, a payments tab and a purchases tab, PayPal CEO Daniel Schulman said in an interview after the event. He said: "PayPal is not interested in buying cryptocurrency for corporate money, but plans to 'capitalise on this growth opportunity'".

The launch of cryptocurrency payments in PayPal Venmo, its popular digital wallet app, is still planned for the first half of 2021. The PayPal Cryptocurrency app, which is currently available to US users, is expected to launch in the UK in a few months.

Persons1 and Companies2 in the news

President and CEO of PayPal
1 place
Venmo
1 place
PayPal
2 place
Section:
Rating companies
Instagram
17 Mention
Netflix
17 Mention
X (Twitter)
11 Mention
Amazon
8 Mention
TikTok
8 Mention
Tesla
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8166088063
Died this year
50862317
Born this year
125130302