Rise Of Online Shopping: Paypal Adds 7.4 Million Accounts In April
As consumers are largely restricted to shopping online, PayPal has witnessed massive growth, adding 20.2 million new active accounts in Q1 2020 and 7.4 million in April alone. For context, PayPal added 28 million active accounts over the whole of 2019.
The total number of active PayPal accounts now stands at over 332 million.
“As our platform sees record increases in both new customer accounts and transactions, it is clear that PayPal’s products are more important and relevant than ever before,” said Dan Schulman, PayPal President and CEO. “The strength of our customer value proposition combined with the acceleration of digital payments adoption significantly accelerated in April, with increased demand and engagement.”
Total payment volume increased by 19% in Q1, totalling $191 billion. As a result, the company’s net revenues rose by 13% year-on-year to $4.62 billion.
In April the total payment volume rose by roughly 22% to $68 billion, and the number of payment transaction increased by 20% to 1.2 billion. PayPal noted particularly strong growth in electronics, video and gaming.
On the back of this strong growth, PayPal is forecasting revenue to grow by 13% in Q2. However, given the uncertainty surrounding the COVID-19 crisis the company is withdrawing its full year 2020 revenue and earnings guidance.