PayPal Plans to Launch Its Crypto ‘Super App’ Wallet
PayPal plans to launch its ‘super app’ wallet in the U.S. in the next several months according to the company’s CEO Dan Schulman. During the company’s Q2 2021 investor update call, he said the initial version of PayPal’s ‘super app’ wallet was “code complete”. The wallet offered by PayPal will feature high yield savings, additional crypto capabilities, and more. Dan Schulman stated that PayPal belongs to a small group of companies that allow customers to use crypto as a funding source.
Earlier this month, the mobile payments company made an important announcement. PayPal announced that it made the decision to increase the limit on crypto purchases for certain U.S.-based users. Thanks to PayPal’s decision U.S.-based customers have the opportunity to purchase up to $100,000 in crypto weekly.
PayPal and its results
PayPal reported second-quarter earnings that were weaker than expected by analysts. The company profit in the second quarter fell 23% from a year earlier to $1.18 billion. Its revenue grew 19% year over year in the second quarter that ended less than a month ago. The coronavirus pandemic caused a surge in online shopping, helping to drive record payment volume in 2020.
The company from California had more than 400 million active users as of June 30. They had $311 billion in total payment volume for the second quarter of the year. Venmo, a PayPal-owned payments company launched crypto trading several months ago. The company had roughly $58 billion in total payment volume for the Q2 of 2021, with 76 million active accounts.
The mobile payments company made a huge push into crypto in 2020, allowing customers in the U.S. to buy, sell, as well as check out with cryptocurrencies. With its network of 32 million retailers, the company’s crypto ambitions positioned PayPal as a rival to Coinbase. At the moment, Coinbase is the most popular crypto exchange in the country.
The mobile payments giant said that eBay is transitioning off of its platform, which is causing a short-term drag on growth. Hopefully, the eBay transition will be completed by end of the third quarter.
With reference to the guidance, for the current quarter, the company sees adjusted earnings of $1.07 per share on revenue of between $6.15 billion to $6.25 billion. Analysts expected $1.14 in adjusted earnings per share on $6.44 billion in revenue.
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