Analyzing PayPal's second-quarter earnings from cross-border payment operations in 2020
PayPal Embraces QR Code Payments and Sees Growth in Cross-Border Business
PayPal, the digital payment giant, is making strides in expanding its QR code payment services across the US and Europe. This move comes as the company is witnessing a resurgence in its cross-border business, which had a slow start in the first quarter of 2020.
The company's second quarter of 2020 saw growth that it predicts will continue into the second half of the year. This growth is attributed to a 29% rise in Total Payment Volume (TPV), indicating a growing trend in digital payments.
PayPal's cross-border business revenue also increased by 22% in 2020, driven by the rebound of key Asian and Western corridors. However, the specific countries or regions contributing to this growth have not been identified in the available search results.
Fashion, electronics, and home goods have been the key drivers of cross-border purchases on PayPal. The company has also become one of the cross-border payment methods on MercadoLibre, the leading e-commerce platform in Latin America.
In addition to its cross-border segment, PayPal's overall business saw an increase in revenue in 2020. The company's partnership with Visa has also been strengthened, allowing customers to access real-time payments through Visa Direct.
Venmo, another service under PayPal's umbrella, also saw growth, with its volume increasing 52% to reach $37bn.
PayPal's earnings call did not mention Xoom or remittances, leading some to question the performance of this particular service. However, PayPal noted to investors that Xoom had a good quarter in terms of customer acquisitions.
The increased revenue and TPV for PayPal are likely due to a combination of factors, including the growing preference for digital payments and the restoration of freedom of movement. As consumers continue to favor digital payments and economies reopen, PayPal is well-positioned to continue its growth trajectory.
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