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

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

Latest Alternative Investment News

Digital Assets: Chase UK Blocks Crypto Transactions; CoinBase CEO Brian Armstrong Pans Decision
Chase U.K. is set to block crypto-related payments starting October 16, with customers no longer able to make such transactions using debit cards or outgoing bank transfers. In an email…

FinTech: Visa Commercial Pay Virtual Cards Now Available To Lloyds Bank Customers
Visa (NYSE: V) and Lloyds Bank (LON: LLOY) have joined forces to introduce a cutting-edge virtual card solution, designed to cater to businesses of all sizes. This innovative product, known…

Artificial Intelligence: Tree-Strapped AI Sentries Warn Of Deforestation In Real Time
Small AI-equipped boxes called “curupiras” have been deployed in the Brazilian Amazon to combat deforestation. These boxes use sensors and AI software to detect sounds of chainsaws and tractors, signaling…

Venture Capital: Industry Ventures Closes On $1.7B In Commitments For Two Funds
Industry Ventures has successfully raised over $1.7 billion in two new funds aimed at assisting venture capital investors in achieving liquidity. The first fund, Industry Ventures Secondary X, has attracted…