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PayPal Holdings Inc. has been a big winner during the pandemic as more people experiment with digital payments, and the company has seen its strong momentum continue for years.
The company predicts it could have 750 million active accounts by 2025, chief executive Dan Schulman told PayPal’s PYPL,
Virtual presentation of Investor Day Thursday, which would be almost double the 377 million PayPal had in the fourth quarter.
Shares rose 5.8% on Thursday at noon.
“We are seeing historic engagement curves starting to bend and accelerate,” said Schulman, in part due to recent product introductions such as cryptocurrency trading, in-store payment options and installment payments.
Engagement trends help lower PayPal’s churn rates and increase its average revenue per user, Schulman said. He expects average revenue per user to “increase dramatically over the next five years.”
The company also sees great international potential, with Schulman citing the acquisition of GoPay in China and its partnership with MercadoLibre Inc. in South America. “We believe we have a great opportunity to expand our business well beyond the core markets we serve today,” he said.
Schulman expects a “new financial system” to emerge that PayPal can help shape with a focus on faster money transfer, expanding access to financial services, and consolidating “formerly capabilities.” disparate ”. Opportunities for PayPal include investment capabilities, bill payment tools, and high yield savings accounts, he said.
The company is also envisioning its app as a mall, where people can create wishlists, earn rewards, monitor prices, and connect with merchants.
PayPal shares have gained 56% in the past three months, the S&P 500 SPX,
increased by 10%.
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