PayPal Earnings Call Q2 2021 Highlights

Yesterday, PayPal announced its second-quarter earnings for 2021 with the company hitting a new record in payments processed (TPV) of $311 billion and now boasting 403 million active accounts.

Investors can find the full details about the second-quarter 2021 earnings report from Paypal here.

Here are highlights from the earnings call we believe are interesting information for online merchants and marketplace sellers.

The following quotes are from Dan Schulman, President and Chief Executive Officer, PayPal

“We hit a new milestone in Q2 surpassing $300 billion of TPV for the first time in our history, growing 40% on a spot basis to $311 billion with an annualized run rate of approximately $1.25 trillion.”

“eBay’s TPV on our platform declined by 37%. eBay exited the quarter at under 4% of our volume, and we expect their TPV will approach 2.5% of our total volumes by year-end.”

“[eBay’s] revenues on our platform declined 51% in Q2.”

“We still have about 60% share of checkout on eBay and, obviously, eBay merchants and consumers want and desire to use PayPal.”

“Excluding eBay, our volumes grew by a remarkable 48% on a spot basis.”

“We added 11.4 million net new active accounts in the quarter, including an additional 1.5 million merchant accounts. That brings our total merchant count to 32 million.”

“We still expect to end the year at the higher end of our previous guidance of 52 million to 55 million net new active accounts.”

“Transactions in the quarter grew by 27% to $4.74 billion. And even as our net new actives continue to show strong growth, our transactions per active account accelerated 11% in the quarter to 43.5 times as our consumers engage more frequently across our growing suite of services.”

“Venmo continued its strong performance in Q2 with $58 billion in TPV, up 58% year over year, with over 76 million active accounts.”

“More than 500,000 customers have established new business profiles on Venmo with more than 300,000 created in Q2 alone.”

“In this quarter, we expanded the Venmo value proposition to allow merchants and consumers to pay for goods and services and receive buyer and seller protections for commerce transactions.”

“This has been a very successful feature on PayPal’s P2P services, and we expect it will be widely adopted on Venmo. I’m pleased to report that the initial version of our new consumer wallet super app is code complete, and we are now beginning to slowly ramp. In the next several months, we plan to be fully ramped in the U.S. with a host of products and services across payments, basic consumer financial services and commerce and shopping tools launching every quarter.”

“Our Buy Now, Pay Later product continues its strong growth and is proving to be extremely popular for consumers and merchants alike. Since launch, we have processed over $3.5 billion in TPV with more than $1.5 billion of that TPV in Q2 alone. Approximately 650,000 merchants have customers who use our Buy Now, Pay Later capabilities, and 40,000 have positioned Buy Now, Pay Later upstream on their product pages.”

“Over 7 million consumers have transacted more than 20 million times with our Buy Now, Pay Later product.”

“We continue to see strong demand for our in-store services with approximately 1.3 million merchants now accepting our QR codes and continued momentum and excitement across our large enterprise merchants. In fact, every 20 seconds, a new merchant signs up to use our QR codes.”

The following quote is from John Rainey — Chief Financial Officer and Executive Vice President, Global Customer Operations, PayPal

“We saw a faster ramp of the [eBay] payments transition than what we had expected earlier this year, which resulted in a larger decline in Q2 volume. Given the speed at which we are seeing intermediation progress, our plans now contemplate nearly 100% completion of the merchant migration by the end of the third quarter.”

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