In what’s been an exceedingly difficult year for much of the economy, Paypal, the secure online payment service, reported banner first quarter profits–a 1,206 percent rise in profits over 2020’s 4th quarter to $1.1 billion.
The Covid-19 pandemic generated a collective shift to online shopping and forms of electronic payments, and industry analysts anticipated a significant increase in Paypal’s net revenues. Still, the company exceeded expectations. Net revenue reached $6.03 billion translating to a year-on-year increase of 31 percent. In extended trading May 5, the price of the company’s stock ticked up as much as 5 percent.
According to Paypal CEO Dan Schulman, the results, released May 5, got a big lift from its crypto service.
Since late 2020, the company began working on offering crypto payment services, which it launched this past April. “Check Out with Crypto” enables Paypal’s American customers to buy and sell with various cryptocurrencies at its 29 million online merchants. The rollout also included the crypto-friendly mobile app, “Crypto on Venmo.”
Optimism High for Paypal’s Future with Crypto Service
The extremely encouraging results are propelling Paypal forward with other crypto-based plans. In a phone interview Schulman said the company has been holding productive conversations about further integration with cryptocurrencies on a global level with central banks, regulators and government officials.
The San Jose, CA-based company also has plans in the works to launch a digital wallet later in 2021 which will serve as an all-in-one, personalized app. Presently the company’s cryptocurrency services support bitcoin, ethereum, bitcoin cash, and litecoin.