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 continuing for years.
The company expects that it could have 750 million active accounts by 2025, Chief Executive Dan Schulman said at PayPal’s
virtual investor day presentation Thursday, which would be nearly double the 377 million that PayPal had as of the fourth quarter.
Shares were up 5.8% in midday trading Thursday.
“We are seeing historical engagement curves start to bend and accelerate,” Schulman said, in part due to recent product introductions like cryptocurrency trading, in-store payment options, and installment payments.
The engagement trends help reduce PayPal’s churn rates and increase its average revenue per user, Schulman said. He expects the average revenue per user to “grow substantially over the next five years.”
The company also sees big potential internationally, with Schulman calling out the company’s acquisition of GoPay in China and its partnership with MercadoLibre Inc. in South America. “We think that we have a large opportunity to scale our business well beyond the core markets that we serve today,” he said.
Schulman expects to see a “new financial system emerge” that PayPal can help shape through a focus on moving money more quickly, expanding access to financial services, and bringing together “formerly disparate capabilities.” Opportunities for PayPal include investment capabilities, bill-payment tools, and high-yield savings accounts, he said.
The company also envisions its app as a shopping hub, where people can build 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
has risen 10%.