FinTech: April Was PayPal’s Strongest Month Since its IPO; “We will Hasten the Demise of Cash”

May 8, 2020 | FinTech, News
https://dailyalts.com/wp-content/uploads/2020/05/screenshot-stockcharts.com-2020.05.08-11_53_05-Paypal.png

President and CEO Dan Schulman’s comments on PayPal’s April month and May 1 transactions were a revelation.

On Wednesday, Paypal (NASDAQ: PYPL) declared its first-quarter numbers. President and CEO Dan Schuman’s remarks on the earnings call regarding PayPal’s post-quarter performance gave an insight into how the fintech’s fortunes are changing due to the COVID-19 crisis and shelter-in-place rules. His comments propelled the stock to a 14% gain for the day and an all-time high. (Seeking Alpha)

Fintechs in clover? Key takeaways from Schuman’s remarks

  • COVID-19 has fundamentally changed the way we think about the future
  • Dramatic acceleration from physical to digital
  • Digital payments have evolved from a “nice to have” capability to an essential service.
  • “We began to see a very noticeable shift in our results toward the end of March and throughout April.”
  • “We saw dramatic increases in our daily net new actives and overall engagement levels.”
  • Unprecedented demand for PayPal’s products and services unfolded in the past month
  • Transactions are up 20% year-over-year, with branded transactions up over 43% more than double pre-COVID levels in January and February
  • On May 1st, PayPal reported its largest single day of transactions in its history, larger than last year’s transactions on Black Friday or Cyber Monday
  • April revenues +20%, and record revenue growth of +35% in checkout experiences
  • Net new active accounts hit record highs in April, surging over 140% from January and February levels
  • In April, Paypal added on average about 250,000 net new active accounts a day
  • The all-time record of 7.4 million net new customers set in April, and a record 10 million for Q1
  • “I would characterize April is perhaps our strongest month since our IPO”
  • Paypal anticipates that it will add 15 million to 20 million new accounts in Q2
  • “We would expect strong EPS and free cash flow growth in Q2”

“I believe we will look back at this time as a tipping point, where digital payments both offline and online became an essential element of our lives, hastening the demise of cash, enforcing a reimagination of commerce, retailing and the payment system.”

Related Story:  FinTech: COVID or Not, Fintechs are Flourishing

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/09/UN17SDGs.jpg
Alternative Investments/ESG: The Newday Sustainable Development Equity ETF

Newday offers portfolios addressing the world’s most pressing environmental and social issues including climate action, ocean health, clean water, diversity, equity and inclusion, wildlife conservation and animal welfare, and stakeholder…

https://dailyalts.com/wp-content/uploads/2022/09/Disperse.jpg
Artificial Intelligence: Disperse Raises $16M For AI-Enabled Construction
September 27, 2022     Artificial Intelligence, News, Venture Capital

Disperse, a provider of AI software that streamlines processes and productivity at construction projects, has raised $16 million in a funding round led by 2150 with participation by existing investors…

https://dailyalts.com/wp-content/uploads/2022/09/police-ge3b00cab4_640.jpg
Digital Assets: Do Kwon Not In Singapore; Interpol Issues Red Notice For The Terra Co-Founder
September 26, 2022     Digital Assets, Latest News, News

According to a Bloomberg report, South Korean authorities have confirmed in a text message Monday that Interpol had issued a Red Notice for Kwon, requesting law enforcement forces globally to…

https://dailyalts.com/wp-content/uploads/2022/09/destruction-g6c8b303c7_640.jpg
Venture Capital: ffVC Steps In To Fill Funding Void, Launches Fund For Ukrainian Startups

ff Venture Capital, or ffVC, an early-stage venture firm focused on global opportunities, launched the ff Blue & Yellow Heritage Fund, the first US venture capital fund exclusively for Ukrainian…