Online payments giant PayPal is edging closer to $1 trillion in annual transaction value, largely due to the e-commerce boom prompted by the coronavirus pandemic.
For the September quarter, PayPal recorded $US479 million on FX-adjusted revenues, up 24.4% to an historic $US5.5 billion.
Quarterly transactions grew by 36% YoY to $US247 billion, with consumer accounts growing by 22% to 361 million.
California-based PayPal, which is worth $US220 billion, offers online, mobile and in-app money transfer products across 200 countries.
Recently, the company entered the “buy now, pay later” space with the introduction of the Pay-in-4 or Pay-in-3 credit platforms in the US and UK market.
This has not yet launched in Australia, however when it does it will compete against Oz-listed providers such as Afterpay and Zip.
For the year 2020, PayPal is forecasting total income to rise 45% to $US1.5 billion, with revenue tipped to jump 25% to $US5.5 billion.
In the last five years, PayPal shares have increased 418%, with a last close of $179.81.
“I’m extraordinarily pleased with the success we’re having with buy now, pay later,” PayPal chief executive Daniel Schulman told analysts.
“We rolled this out in France several months before we introduced this into the US and UK, and the up-tick that we’re seeing in the French market is well beyond any of our expectations. We just rolled out in the US and the demand is tremendous.”
