PayPal’s transaction revenue and active accounts surged in the fourth quarter of 2020, as consumers flocked to use its wallets to buy and sell cryptocurrency.
PayPal added a record 72.7 million active accounts in 2020, with the addition of 16 million accounts in the fourth quarter. During the quarter, PayPal’s overall revenue climbed 23% to $6.12 billion, with a 12% growth in transaction revenue.
The company said consumers flocked to its service in the final months of the year, as they hurried to finish their holiday shopping, and started using the company’s wallets to buy and sell cryptocurrency.
PayPal announced the crypto buying and selling service in October 2020 with a partnership with industry startup Paxos. Since November 12, all of its 350 million eligible PayPal account holders in the U.S. can buy, hold and sell major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
PayPal Crypto Service International Launch
The activity on its network remains high after it added the ability for consumers to buy, hold and sell cryptocurrency using its wallets in recent months, according to PayPal. Customers who took advantage of the feature to purchase cryptocurrency began logging into PayPal at two times the rate they were prior to using the service, the company noted in its investor update.
“We hope to launch our first international market in the next several months,” PayPal CEO Dan Schulman said, adding that they expect to enable users to fund their accounts with crypto “late this quarter”.
Additionally, the company is investing in its crypto business unit. “We are significantly investing in our new crypto, blockchain, and digital currencies business unit in order to help shape this more inclusive future,” said Schulman.