PayPal Holdings Inc. has been a big winner during the pandemic as more people experiment with digital payments, and the company sees its strong momentum continue for years to come. The company expects to have 750 million active accounts by 2025, said CEO Dan Schulman at PayPal’s PYPL, + 4.52% from the virtual investor’s day filing on Thursday, which would be almost double the 377 million PayPal had in the fourth trimester.
The shares were up 5.8% in midday trading Thursday. “We are seeing historical participation curves begin to bend and accelerate,” Schulman said, in part due to the recent introduction of products like cryptocurrency trading, in-store payment options and installment payments. Engagement trends help lower PayPal’s abandonment rates and increase your average revenue per user, Schulman said. He expects average revenue per user to “grow substantially over the next five years.” The company also sees great potential internationally, with Schulman pointing to the company’s acquisition of GoPay in China and its partnership with MercadoLibre Inc. in South America. “We believe we have a great opportunity to scale our business well beyond the core markets we serve today,” he said. Schulman hopes that a “new financial system” will emerge that PayPal can help shape through a focus on moving money more quickly, expanding access to financial services and bringing together “previously disparate capabilities.” Opportunities for PayPal include investment capabilities, bill payment tools and high-yield savings accounts, he said. The company also views its app as a shopping hub, where people can create wish lists, earn rewards, monitor prices, and connect with merchants. PayPal shares have gained 56% over the past three months, as the S&P 500 SPX, -0.18%, has risen 10%.