PayPal's revenue up by 31%, thanks to rising popularity of cryptocurrencies

Revenues of PayPal increased by 31% in the first quarter of 2021, Report informs.

According to the company’s CEO Dan Schulman, cryptocurrencies became the key growth engine for this. In October 2020, PayPal announced its entry into the cryptocurrency market.

The payment system allowed US customers to buy, store and sell bitcoins and other virtual currencies using PayPal accounts. Residents of other countries will have this opportunity in the first half of 2021.

PayPal's net profit in January-March 2021 rose to $1.10 billion from $84 million a year earlier. In three months, the company's revenue grew by 31%, from $4.62 billion to $6.03 billion.

Revenue and earnings exceeded analysts' expectations at Refinitiv. Earnings were $1.22 per share versus the expected $1.01. Revenue amounted to $6.03 billion against an expected $5.9 billion.

The total volume of payments on the platform in the first three months of 2021 grew by 50% to $285 billion. The number of active users increased by 14.5 million, reaching 392 million.

Following the announcement of financial results for the first quarter, PayPal shares went up 5.5%. For the second quarter, PayPal is forecasting adjusted earnings of $1.12 per share on revenue of $6.25 billion. PayPal expects revenue growth for the year by 20% to $25.75 billion.