During PayPal’s 2021 Investor Quarterly Report, President and CEO Dan Shulman said that digital assets have performed well for the company and that he believes cryptocurrencies and central bank digital currencies will be a driving force in creating a “fairer financial system.” …
Following PayPal’s successful transition to cryptocurrencies, much of the conversation has centered around the company’s recent and future plans for digital assets.
“We believe that the current technological underpinnings of our financial system will be significantly upgraded in the coming years,” Schulman said, adding that this will help the recovery efforts from the pandemic:
“Both cryptocurrencies and central bank-issued digital currencies can play an important role in shaping a more inclusive recovery and a fairer financial system.”
The CEO mentioned that the payment provider has planned a comprehensive card for cryptocurrencies, noting that digital innovation will be driven “in partnership with governments and in accordance with local, national and global regulations.”
“We have a lot of really good tactical results thanks to our efforts in the crypto space,” he added.
The company rallied more than 5% on Wednesday in response to the income statement after PayPal said earnings per share exceeded expectations by more than 20% at $ 1.22 per revised share. PayPal’s $ 6.03 billion revenue also beat expectations by 2%.
Payouts were $ 20 billion more than expected and totaled $ 285 billion at the end of the quarter. The company also added 14.5 million new active accounts, bringing the number of users to 392 million.
Schulman said the adoption of PayPal’s digital assets was “widely accepted,” citing fruitful conversations with “central banks, regulators and government officials around the world.”
The company touted the use of digital assets as a cryptocurrency accelerator, allowing “millions of merchants around the world” to accept cryptocurrencies. However, transactions made with digital assets on the Paypal trading network are currently in fiat currency.
Last month, the PayPal Venmo app also offered buy, hold and sell options. PayPal noted that the 2020 Venmo Customer Behavior Survey found that 30% of customers had already started buying cryptocurrencies, of which 20% had started buying in the midst of the coronavirus pandemic.
Schulman also noted that the company completed its acquisition of cryptocurrency manager Curv last month, saying, “Curv’s talented team will expand our existing technology resources and accelerate our efforts to create an efficient, affordable and comprehensive new financial infrastructure.”