PayPal Quarterly Update – Q4
Feb 5, 2021

Corporate

PayPal just completed the strongest year in our history. Amid the permanent move to digital commerce, the convenience and security of PayPal has never been more appealing and needed to merchants and consumers. In this historic year, we released more products than ever before and have dramatically scaled acceptance worldwide.

Key 2020 highlights include:

  • Total Payment Volume of $936 billion, up 31% FXN
  • Revenue of $21.45 billion, up 22% FXN
  • Net New Active Accounts of 72.7 million, up 95%

 

 

Q4 News Highlights

  • PayPal introduced a new Cash a Check feature, enabling Venmo users to access a quick, easy and secure way to cash paper checks. The new feature allows select Venmo customers to cash checks directly from the Venmo app.
  • PayPal launched QR code payments in iZettle’s point of sale app, allowing small businesses across the UK - from retailers to florists and cafes - to accept safe and secure touch-free payments from customers.
  • Xoom, PayPal’s money transfer service, introduced secure and convenient money transfers directly to mobile wallets in 12 key markets across Africa with a focus on the underbanked segment - with plans to include more markets in 2021.
  • CVS Pharmacy implemented touch-free checkout using PayPal and Venmo QR codes at 8,200 standalone retail locations.
  • PayPal waived check cashing fees for the second round of government issued stimulus checks, enabling more customers to access their funds from the safety of their homes free of charge.
  • As part of our ongoing commitment to improve the financial health of our workforce, PayPal announced a partnership with Even, an on-demand pay platform.
  • PayPal introduced Amex Send and Split, a new way for American Express card members to seamlessly send money, split purchases and manage their expenses with PayPal and Venmo.
  • In Q4, PayPal Ventures made investments in: Payments as a Service API platform, Modulr; blockchain infrastructure platform, Paxos; European open banking platform, Tink; spend management leader, Divvy; cryptocurrency tax automation software, Taxbit.
  • In November, we highlighted that our platform processed a record breaking more than $185 million in donations during GivingTuesday 2020.

 

Supporting Small Businesses 

  • In continuation of our efforts to help small businesses thrive in the pandemic. PayPal announced that we would once again be accepting applications for small business loans through the U.S. Small Business Administration (SBA) Paycheck Protection Program.
    • In 2020, PayPal helped more than 75,000 businesses support over 300,000 employees.
  • In January, PayPal and Morning Consult introduced our inaugural Small Business Confidence Index aimed at understanding the sentiment of SMBs in the U.S. and surveying their challenges in order to understand how to work more effectively across the public and private sectors on recovery efforts.
  • We featured some of the dynamic businesses we’ve worked with in the pandemic including  Long Stone Farm in Virginia and Rotofugi in Chicago.

 

Prioritizing Racial Equity  

  • In December, we announced a $50 million dollar investment in the LISC Black Economic Development Fund and expanded our $530 million commitment to support Black and minority owned businesses with an additional $5 million grant program.

 

Never Stand Still Season Three 

The third season of Dan’s video and podcast series, Never Stand Still, concluded its first season in a new virtual format. Dan rounded out the season with interviews highlighting Shellye Archambeau, one of tech’s first Black woman CEOs and Salesforce Founder and CEO Marc Benioff. You can find Dan’s recap of the season on his LinkedIn.

 

Q4 Earnings Highlights  
 

  • Q4’20: Outstanding finish to a record year
    • Total Payment Volume (TPV) of $277 billion, growing 39%, and 36% on an FX-neutral basis (FXN); revenue of $6.12 billion, growing 23% on a spot and FXN basis
    • GAAP EPS of $1.32, up 208% and non-GAAP EPS of $1.08, up 29%
    • Added 16.0 million Net New Active Accounts (NNAs)
  • FY’20: Strongest performance in PayPal’s history
    • TPV of $936 billion, growing 31% on a spot and FXN basis; revenue of $21.45 billion, growing 21%, and 22% FXN
    • GAAP EPS of $3.54, up 71% and non-GAAP EPS of $3.88, up 31%
    • ~$5.9 billion in Operating Cash Flow and ~$5.0 billion in Free Cash Flow
    • Added 72.7 million NNAs
  • FY’21: Expect ongoing momentum with strong TPV growth and NNAs
    • TPV expected to grow in the high 20’s on a percentage basis for the year
    • Revenue expected to grow ~19% at current spot rates and ~17% on an FXN basis, to approximately ~$25.5 billion
    • GAAP EPS is expected to be ~$3.20, compared to $3.54 in FY’20, which benefitted from ~$1.24 in net gains on strategic investments; non-GAAP EPS is expected to grow ~17%
    • ~50 million NNAs expected to be added to PayPal’s platform in FY’21
  • Learn more about PayPal’s Q4 earnings here.
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