According to the online funds transfer company’s projections, the total payment volume for 2021 is set to increase by a high 20 per cent range increase in its total payment while earnings per share (EPS) during the year are expected to rise at a 22 per cent compound annual growth rate (CAGR).
The total payment volume processed in 2020 was close to $1 trillion ($936 billion), a 31 per cent year-over-year increase. According to the research data analyzed and published by ComprarAcciones.com, the company’s revenue will grow in the low 20 per cent level and EPS will be in the mid-20 per cent level.
At the end of 2020, PayPal had 377 million users. However, the company expects immense growth in the coming years anticipating 750 million active accounts by 2025 with Crypto exposure adding over $1 billion to PayPal revenue by 2022, according to BTIG analysts.
The revenue target for 2025 is $50 billion, more than double the $21.5 billion posted in 2020. That would raise its CAGR from the previous five-year average of 18 per cent to 20 per cent.
This means that by 2025, total payment volume will reach $2.8 trillion, triple of the 2020 figure.
The launch of its crypto services in October 2020 is expected to trigger PayPal’s growth. The company also recently acquired Curv in a deal valued at less than $200 million.
By Theodora Aidoo