You won’t hear PayPal executives complain much about COVID-19, that’s for sure.
The California-based company (PYPL) recorded an astonishing 209% net profit growth at $1.6b in Q4 due to a rise in user activity and payment volumes during the pandemic. Let’s throw some more numbers jaw-dropping at you… For the full fiscal year of 2020, PayPal’s net profit jumped over 70%, compared to the previous year, to $4.2b. They added a total of 72.7 million active accounts last year, with 16 million of those in the final three months of the year alone!
If anyone doubted that PayPal would be able to remain relevant throughout the FinTech boom – here’s their answer. Shares jumped over 5% in the wake of the results.
One of the main reasons that PayPal did so well in the fourth quarter was all that online shopping by consumers over the holiday period. Another reason was the addition of a new feature that allowed for cryptocurrency transactions, which came in handy at a time when they were skyrocketing in value last year. Coincidence?