PayPal’s Q2 net profit drops, but its crypto ambitions grow

After the second-quarter earnings were lower than analysts expected, PayPal’s stock price fell 8% on Wednesday.

Earnings per share adjusted for 1.15 US dollars, while analysts survey expected it to be 1.12 US dollars.

Revenue reached US$6.24 billion compared to the expected US$6.27 billion.

PayPal Holdings, a digital payment platform provider company, founded in 1998, is a significant leader in digital finance.

It provides buyers and sellers with a platform to facilitate payment transactions. PayPal Holdings’ product portfolio includes PayPal, Venmo, Xoom and One Touch.

In the second quarter, net profit fell 23% year-on-year to US$1.18 billion. The company added 11.4 million new net active accounts, which brings the total number of active accounts to 403 million.

According to a statement, revenue for the quarter, ended June 30, increased 19% year-on-year.

The pandemic triggered a surge in online shopping and helped drive record payments in 2020

Total payments increased by 40% to 311 billion U.S. dollars. Payments for the Venmo application, which started supporting cryptocurrency services in April, increased by 58% to 58 billion U.S. dollars.

The mobile payment company vigorously promoted crypto payments last year. It allows U.S. users to use cryptocurrency to buy, sell and settle accounts.

As PayPal’s network includes 32 million retailers, the company’s crypto ambitions have made the company a competitor to Coinbase, the country’s most popular crypto exchange.

What will Supper App Wallet have to offer us?

In today’s PayPal’s second-quarter 2021 investor update conference call, CEO Dan Schulman stated that the initial version of the company’s Super App Wallet is “code complete.” Furthermore, the president of PayPal said that the company plans to fully promote this wallet in the United States in the next few months.

The super app wallet will be equipped with options like high-yield savings, early access to direct deposit funds, messaging functions, and some additional crypto functions. Shulman said that each wallet would be “unique, driven by advanced artificial intelligence and machine learning capabilities.”