The online payments giant released its latest financial report (pdf). PayPal shows objectives that have been achieved for the first quarter of 2022, but without particular fulgurance in the various business sectors of the company. Net profit was $509 million, twice less than last year’s $1.1 billion.
Slight increase in turnover
For its part, the turnover of the company of Dan Schulman, current CEO of PayPal, exceeded expectations. It represents $6.5 billion in the first quarter of 2022, an increase of 7% compared to the same period in 2021. The total amount of transactions made by PayPal users is $323 billion. A 15% increase in the value of transactions from the previous year.
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This progress is due to several initiatives implemented by the company during the beginning of the year. She expanded access to PayPal for Ukrainian citizens and authorized donation campaigns to help them, which raised $500 million. The company also renewed its partnership with American Express and Citibank to give users more choice in how they pay. The company, however, makes no mention of its super app which is only available in the United States.
Over the whole of 2021, 5.2 billion transactions were carried out via PayPal, that is to say 18% more than in 2020. Dan Schulman is delighted with the results “ that have exceeded our expectations in terms of revenues and profits… We are fortunate to be able to build the future of the digital economy by transforming financial and commercial services. »
An uncertain next quarter for PayPal
This first quarter of 2022 saw 2.4 million new active accounts arrive on the platform. The company forecasts 10 million new users for the whole of 2022. Currently, it has more than 429 million active accounts.
However, the platform’s medium-term prospects are unclear. PayPal recalls the current impact of supply problems linked to the Covid crisis affecting ecommerce. Consumer habits that mix virtual purchases and in-store purchases also complicate the company’s projection into the future.
As in the previous quarter, the effects of PayPal’s withdrawal from eBay are still being felt. PayPal also expects to suffer the economic consequences linked to its decision to join the boycott of Russia alongside many Western companies.