PayPal Sees a Q1 Record Following “Checkout With Crypto” Feature

Paypal delivered incredible growth in total payment volume and revenue in this year’s first quarter, leading to a new record performance. Let’s look at how cryptocurrency affected those numbers.

Paypal Strong First-Quarter Results

Recent news revealed that their Q1 totals had surpassed company records. Though revenue projections were $5.91 billion, the actual revenue rose by over $1 billion. While there are a host of factors contributing to the rise (including increased online shopping due to the worldwide pandemic), one major reason was their embracement of cryptocurrency.

Paypal launched its “Checkout With Crypto feature” last month.This feature allows Paypal users to hold Bitcoin, Ether, Litecoin, and Bitcoin Cash in their digital Paypal wallets. They can also convert their cryptocurrencies to fiat currencies when they need to make a purchase. Another contributing factor could be Coinbase’s announcement last month that its users can use their Paypal wallets to purchase crypto on its platform. Paypal extended its crypto features to its Venmo payments app this past month as well, indicating the company is invested in cryptocurrency.

Big Profits

Paypal’s $1.1 billion profit in the just-ended quarter far exceeded the $84 million profits it made within the same period last year. After releasing its earnings report, Paypal shares increased a little over 4 percent in after-market trades. Paypal’s expansion into the digital currency space followed the company allowing its users in the United States to make purchases from several other businesses that use the payment service company for online transactions. The payment giants have increased their revenue projections and adjusted their earnings per share for the next quarter. 

What Exactly are Paypal and Its ‘Checkout With Crypto’ Feature?

Paypal is a digital payment processor that provides a simple and secure way for its users to spend, send and receive money the way they want. Last month, Paypal launched the buy-hold-sell cryptocurrency feature for its Venmo customers. Paypal has also supported the U.S. small business paycheck protection program with about $3 billion in loans to almost 100,000 businesses. On April 27, 2021, Time Magazine included Paypal in its inaugural list of the 100 most globally influential companies.

If a Paypal user has enough of a single type of currency to make a purchase, the Checkout With Crypto feature will appear for such customers to select. This feature appears with other usual payment methods such as credit card/debit card or bank account. Hence, it works similarly to other check-out options while offering the same benefits as them.

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