- General
- February 4, 2021
- 4 minutes read
Q4 2020: PayPal Triples Profit
The online payments giant PayPal has posted its financial results for the fourth and final quarter of the just wrapped-up…
The online payments giant PayPal has posted its financial results for the fourth and final quarter of the just wrapped-up 2020, showing strong revenues and high growth in profits. In Q4 2020, the company more than tripled its profit over the year from $507 million to $1.57 billion on the backs of increasing business. It posted $6.12 billion in revenue for the quarter.
PayPal reports adding 16 million new accounts in Q4 2020, now with a total of 377 million accounts. The company appears to have benefitted tremendously from the massive boost in online shopping that spurred from the Covid-19 pandemic.
For the full year 2020, PayPal added 72.7 million net accounts, a record for the company. It processed $936 billion in payments and took in $21.45 billion in revenue through the year. Profit for the year came at $4.2 billion, compared to $2.5 billion in the previous year.
On the backs of higher net income, PayPal ended 2020 with $19.2 billion in cash and short-term investments on its balance sheet. The company’s debt load totaled $8.9 billion at the year’s end.
PayPal is one of many companies that’s benefitted greatly from the boost in online shopping that spurred due to a heightened Covid-19 pandemic in 2020. Another in that cohort is the e-commerce giant Amazon, which posted its first $100 billion+ sales quarter in Q4 2020.
E-commerce and online payments companies flourished well in 2020, with PayPal being a major online payments provider. As such, 2020 was a very good year for PayPal.
In 2020, PayPal made notable moves including allowing users to begin buying and selling cryptocurrency with their accounts, and the launch of a ‘buy now, pay later’ service. On the merchant side, PayPal ended 2020 with over 600,000 merchants globally registered on its platform.
