As one of the most popular payment methods on the planet, PayPal’s quarterly earnings reports are eagerly anticipated within fintech. And on 5th May, the digital wallet released its first financial report for 2021.
But beyond showing how the company alone is doing, they can also suggest how the overall industry is doing. And considering the number of payment options accepted on casino sites, they’re also important to look at for the online gambling sector.
So, how did PayPal perform in the first three months of 2021 – and what contributed to this? How will these results impact PayPal casinos and the broader gambling industry? We’ll discuss all of these points in this article.
How did PayPal perform in Q1 2021?
PayPal enjoyed record growth when it came to total payment volume, with customers using the platform for $285 billion worth of transactions. Said figure represented a 50% increase compared to Q4 2020. This was also 45% higher than in Q1 2020.
The company is also closing on nearly 400 million active accounts, thanks to a net total of 14.5 million new active users.
Correlating with its growing customer popularity, Q1 2021 was a good quarter for the company itself. PayPal made $6.02 billion in revenue, which was 31% higher than in the final three months of 2020. Again, this was record growth.
Reasons for PayPal’s performance
One big reason for PayPal’s continued success in the first quarter of this year was its diversification. The company embraced cryptocurrency and expanded its offerings within the platform.
From the end of March 2021, users have been able to use PayPal to make payments with Bitcoin, Litecoin and Etherum. Its intentions to do this had been announced in late 2020.
PayPal also offered new crypto experiences through Venmo. Since April, Venmo customers have been able to buy, hold and sell currencies of this kind with the mobile payment solution.
Another Venmo-related Q1 2021 announcement was that all customers could now apply for a credit card with service.
What could affect PayPal’s overall H1 2021 performance?
PayPal’s Q1 2021 results were the best it has ever performed in the first quarter of a year. And its Chief Financial Officer John Rainey believes more is to come, hinting at an even more exciting future for the digital payments company.
Even if PayPal introduced nothing new this quarter, the global shift away from cash means it would stand in good stead. The company predicts that QR code payments will become more popular, along with buy now pay later solutions. Both of these are offered by PayPal.
Moving into China is also a big opportunity for PayPal. The company aims to focus on cross-border payments in the country when it launches at some stage this year.
Payments in China are competitive. Big western companies have also failed there numerous times in the past, with Amazon being a notable name. So, how the company does there – if it launches in before the end of H1 2021 – will be interesting to see.
How might PayPal’s success affect the UK gambling industry?
Closer to home, PayPal’s Q1 2021 results could have an impact on the UK gambling industry. The company’s ever-increasing focus on cryptocurrency will spell good news for players who want to pay via these means. And as the company’s revenue increases, more will be invested in improving said services.
PayPal’s success might also spur on other digital wallets with similar solutions. Skrill is another company which recently enhanced its crypto offerings, offering fiat to crypto withdrawals in numerous markets. It plans on introducing this in the UK in the near future.
It will also be interesting to see if QR code payments take off within the betting industry. For betting shops reeling from over a year of coronavirus restrictions, and trying to give players a reason to bet in-store rather than online, this payment method might offer them a sturdy opportunity to do this.
PayPal goes from strength to strength
PayPal’s Q1 2021 results showed not only how well the company is doing, but also the importance of merchants offering convenient payments.
The company’s increased focus on crypto will no doubt seep into other payment companies, and we can also expect to see even more of an adoption within the gambling industry. Offline, QR code payments and other contactless solutions may also grow in popularity.
Q2 2021 promises to be a big quarter for PayPal, along with its competitors. And as a result, bettors can expect to benefit from better-quality services as these companies vy for their attention.