31 Awe-Inspiring PayPal Statistics for Easy Transactions

PayPal Statistics

With more than 300 million active users, PayPal has come a long way since its launch back in 1998. Over the course of 23 years, the company’s path was full of ebbs, flows, and tipping points — which is why we bring you some of the most interesting PayPal statistics. These stats will answer all your burning questions regarding this internet mogul. Likewise, they will reveal some rather intriguing facts as well, such as the total PayPal customer number, its annual revenue, and more. 

So, if you want to discover everything there is to know about this incredible company and how shopping with PayPal has revolutionized the world of digital payment, keep on reading.

10 Most Interesting Facts & PayPal Statistics for 2022

  • Users over 50 are PayPal’s fastest-growing segment.
  • PayPal had 337 million active users in 2020.
  • 80 million people use PayPal’s One Touch payments.
  • PayPal supports 26 currencies.
  • There were 40.9 transactions per active user account in 2020.
  • The company made 15.4 billion payment transactions in 2020.
  • PayPal statistics report the revenue amounted to $21.4 billion in 2020.
  • The company’s annual profit in 2020 was $4.2 billion.
  • In 2020, PayPal held a market share of 54.48%.
  • In 2013, PayPal accidentally credited one man’s account with more than $92 quadrillion.

Let’s dive right into some of the most remarkable online facts and stats about the PayPal money market as of today.

How Many People Use PayPal?

PayPal was founded in 1998, and since then, it has witnessed an astounding growth in users.

1. Within the first three years of launching, the company had 10.2 million users.

(The Street)

PayPal founders wanted people to give them their emails, banking and credit card information. In return, the company provides them with fast and low-cost payments.

Soon, PayPal would become a staple in personal finances. Their user base counted millions, with 2.6 million commercial accounts and $3 billion in payments.

2. PayPal users in 2019 amounted to 305 million.

(Business Of Apps)

Digital payments are slowly but surely replacing credit cards, and PayPal’s growing popularity has proved just that. 

The number of PayPal users witnessed a growth of 38 million compared to 2018. In addition to that, 24 million people had PayPal merchant accounts. The number of transactions amounted to $12.4 billion in the same year, while the payment volume was $712 billion.

Still, these figures fade compared to the year 2020 PayPal statistics.

3. In late 2019, PayPal had 450 million mobile users in India.

(Financial Times)

Ever since PayPal became available for merchants in India to process both local and global payments in November 2017, the total number of PayPal users in India has grown rapidly. 

That said, on the 1st of April, 2021, PayPal updated its policy for users from India. Although they will be able to use PayPal to receive and send international payments, they won’t be able to receive Indian Rupee (INR) payments from other Private Limited PayPal users.

4. In 2019, the UK had the highest number of PayPal daily users in Europe — 330,000.

(Cross-Border Magazine) (Business Insider)

Over 200 countries use PayPal’s services. However, when it comes to Europe, Brits steal the spotlight. 330,000 Brits access PayPal’s services on a daily basis. In other words, about 0.5% of the population. Based on the statistics, the total number of PayPal users in the UK in 2019 was 26 million.  

Germany was the second country on the list with 23 million registered users. About 312,000 Germans used PayPal’s services every day. In France, 9.5 million people use PayPal, followed by Italy (6.8 million) and Spain (5 million).

PayPal is also popular among the Vikings, in Sweden, Denmark, and Norway. In fact, If we’re to believe the stats on PayPal users by country, 0.14% of Swedes use PayPal daily, followed by 0.13% of Danes, and 0.10% of Norwegians. Only 0.06% of Finns use PayPal, though.

5. 9% of American PayPal users are children.

(Statista)

Based on the data from December 2020, 49% of American children have a savings account, and 1 in 10 are credit card owners (9%). 

The same percentage of children have a PayPal account. Given that the company’s policy doesn’t allow children under 18 to own an account, they use student and children accounts signed by their parents.

6. 337 million is the number of PayPal active users in 2020.

(Business Of Apps)  

That’s 72 million users more than the company had in 2019! 

In 2020, PayPal’s payment volume was $936 billion ($224 billion more), and there were 15.4 billion transactions (3 billion more than in the previous year).

7. PayPal currently has 28 million merchants and 361 million active accounts.

(Merchant Maverick)

PayPal has made business so much easier for merchants. 

According to the recent PayPal business account statistics, millions of merchants appreciate that:

  • PayPal doesn’t charge monthly fees,
  • They’re not bound by a contract, and 
  • They have an abundance of tools for bringing virtual PayPal shopping closer to their customers.

8. Users over 50 are the company’s fastest-growing segment.

(CNBC)

Due to the pandemic and lockdowns, many people had to adapt to online payments to avoid getting infected. PayPal usage stats from March to April of 2020 show people over 50 were PayPal’s fastest-growing segment.

9. 80 million people use PayPal’s One Touch payments.

(Business Of Apps) (PayPal)

One Touch is PayPal’s feature that allows the users to skip logging in by using their email and password. The feature can be used via laptop, tablet, mobile phone, or desktop. It logs in the users automatically.

Overview of PayPal Popularity 

How did PayPal gain its popularity?

(YouGov) (YouGov)

In the same fashion, PayPal is also the third most famous brand in the UK. Based on the stats, 69% of Brits have a positive opinion about the company, 18% have a neutral opinion, and only 11% don’t think highly of the brand.

(Statista)

Based on the 2019 data, 80% of Europeans prefer using PayPal, Alipay, and WeChatPay as their payment method. 66% of Americans claimed the same, together with 63% of people from the Asian Pacific region. 

On the other hand, 51% of Indians prefer using PayPal, Alipay, and WeChatPay.

(YouGov)

PayPal is most popular among people between 41 and 56 (Generation X). As a matter of fact, 75% of people that belong to Gen X have positive opinions about the company. Almost the same percentage of Millennials (70%) and Baby Boomers (68%) feel the same.

13. There were 40.9 transactions per active user account in 2020.

(Pymnts)

According to the PayPal data, the company’s user base is not only continuously growing, but it’s also becoming more engaged. Furthermore, PayPal is expected to add 50 million net new accounts in 2021. What is more, 10 million customers use PayPal in-store. 

PayPal also introduced the “buy now, pay later“ option to attract more consumers. This was a total success since it has become one of the company’s fastest adopted products.

14. PayPal vs. Venmo user statistics reveal that Venmo has 52 million users.

(Business Of Apps)

For comparison’s sake, PayPal has 325 million more customer accounts, i.e., 377 million, including approximately 24 million merchant accounts, over the same period. 

In 2020, Venmo’s annual payment volume was $159 billion, compared to PayPal’s $936 billion. That said, Venmo contributes about 16% of revenue to PayPal’s total.

How Huge Is PayPal Revenue?

How much money did the company manage to generate in 2020?

15. The company made 15.4 billion payment transactions in 2020.

(Business Of Apps)

PayPal’s number of annual payment transactions grew by an astounding $3 billion from the previous year. 

16. PayPal 2020 revenue amounted to $21.4 billion.

(Business Of Apps) (Statista)

The company’s annual revenue in 2020 was $3.7 billion higher than its amount in 2019, i.e., $17.7 billion. The fourth quarter of 2020 was a record period for the company. 

To be precise, the PayPal annual revenue witnessed an increase of about 25%, making the last quarter of 2020 the most profitable period since the company was started.

17. The company’s annual profit in 2020 was $4.2 billion. 

(Business Of Apps)

Not only did the company manage to increase its net profit amidst the pandemic by 75%, but PayPal is now worth more than the giant Mastercard. 

18. PayPal ARPU was close to $15 per account in 2017.

(Market Realist)

The company had a revenue of over $3.1 billion in Q2 2017. They also had 10 million active accounts during the same quarter, which means that each account brought in $14.93 in revenue on average.

19. PayPal ARPU rose to an amazing $21.01 per user in 2020.

(Business Quant)

As of now, the company doesn’t break down its revenue per user, yet some financial specialists have calculated the average revenue per user based on PayPal’s data from 2017. While in the last quarter of 2019 the ARPU was an amazing $19.40, the figure plummeted to $9.70 in the first quarter of 2020. 

From then on, the ARPU went from strength to strength and the year ended with $21.01 in Q4 of the year 2020.

PayPal Market Share Stats and Figures

How big are the company’s market shares?

20. PayPal’s market value grew to $49 billion just a day after splitting from eBay in 2015.

(Martech Zone) 

Furthermore, the company’s revenue and transaction value grew by 16% and 20%, respectively, after the split. 

In addition, PayPal’s shares rose by 5.4% and reached $40.47, whereas eBay’s shares grew by merely 2.4% during the same quarter.

21. PayPal’s stock market price is currently valued at approximately $244.60.

(The Street) (Yahoo Finance)

If we take a closer look at the Paypal 2020 stats, the company had doubled its share price compared to 2019, when the share price was $108. 

What’s more, as the PayPal report states, the share price from August 2019 was also significantly higher than that from 2018, when the stock market share price was just $85.

22. It’s estimated that the company’s earnings per diluted share (EPS) will be $3.20.

(PayPal Earnings Release)

In 2020, GAAP PayPal earnings per diluted share included about $1.24 of net gains from the company’s strategic investment portfolio. 

It’s also estimated that in 2021, PayPal’s revenue will witness a growth of about 19% at current spot rates, and about 17% on an FXN basis, making it worth roughly $25.5 billion.

23. The company’s net income in 2019 was 39 cents per share.

(MarketWatch)

The PayPal market share in 2019 was slightly more successful than the one from the year before. After adjustments in the stock-based compensation and other expenses, those earnings grew to 58 cents per share in 2018 and 61 cents per share in 2019.

The company’s success also reflects in the fact PayPal is the first foreign company to get a license for domestic payments in China.

24. In 2020, PayPal held a market share of 54.48%, clearly dominating the market.

(Martech Zone)

Its main competitor, Stripe, held a market share of 18.57% in the same year, despite the higher number of sites. Amazon Pay came in third, with 3.74%. Square Payments (2.30%), Braintree  (2.22%), and Stripe Checkout (1.97%) follow suit.

25. Based on the PayPal statistics, the company has the 6th largest market capitalization in the world — $295 billion. 

(Statista)

When it comes to the biggest internet companies globally, Amazon has the largest market capitalization of $1,662 billion, followed by Alphabet ($1,392 billion) and Facebook ($759 billion). 

PayPal is currently listed above Netflix, which has a market capitalization of $239 billion.

Paypal Fast Facts You Need to Know

Here are a few unique and fun facts and stats about PayPal.

26. In 2013, PayPal accidentally credited one man’s account with more than $92 quadrillion.

(CNN Business)

Back in 2013, a Pennsylvania PR executive received, by error, $92,233,720,368,547,800. 

However, PayPal quickly corrected their mistake, offering the account’s owner to donate an unspecified amount of money to a cause of their choice.

27. PayPal will allow its US users to buy and sell cryptocurrencies.

(The Verge)

PayPal million users and customers from the US will now be able to use cryptocurrencies as their form of payment. Through its “Checkout with Crypto” feature, users will be able to convert Bitcoin, Ethereum, and Litecoin to US dollars. The conversion will be free.

28. During their early years, PayPal gave new customers $10 for joining their platform.

(Business Insider)

One of the most entertaining facts about PayPal is how the company got so many users so rapidly after its launch. 

The secret? Giving away money to earn money!

Not only did PayPal give $10 to each new user, but they also gave those users $10 more every time they referred someone.

29. PayPal shares user data with more than 600 companies.

(The Telegraph)

In 2018, the company revealed it shared personal data as a part of its transparency drive. 

PayPal facts show that there’s a scale upon which companies get their hands on this valuable data. More than 200 companies acquire detailed personal information, such as the user’s full name and gender, primarily for marketing and PR purposes.

30. PayPal supports 26 currencies.

(Sharetribe Go) (Craft.co)

You could use anything from the US Dollar, the British Pound Sterling, the Euro, and the Russian Ruble to the Czech Koruna, the Swiss Franc, and the Japanese Yen. 

What’s more, as a truly international company, PayPal also has 44 offices across 23 countries.

31. Does PayPal report to the IRS? Yes, if the conditions are met.

(PayPal)

In the case that there are sellers that receive over $20,000 in gross payments (or receive more than 200 distinct payments over the course of a single year), the company must, in fact, report these to the IRA.

Keep in mind that the reported amount also includes handling, shipping, sales taxes, and fees that come with the payments. 

FAQs

Who invented PayPal?

PayPal was founded by technology entrepreneurs Peter Thiel and Max Levchin in 1998, in Mountain View, California, under the name Confinity. 

Interestingly, in 1999, PayPal was voted to be one of the top 10 worst business ideas.

Two years later, the company changed its name to PayPal after the founders decided to focus primarily on internet payments.

How does PayPal make a profit?

The company earns money by simply processing the customers’ transactions. PayPal charges its customers fees based on the sum of their transaction. It also makes money from other value-added services.

The fees will also be different for domestic and international transactions. For example, for sending domestic personal transactions, if you use a card, you will pay 2.90% + fixed fee. For international personal transactions you’ll need to pay 5.00% + 2.90% + fixed fee, etc. 

What are the risks of using PayPal?

The risks of using PayPal are more or less the same as with any other online payment system. First of all, you must avoid using public Wi-Fi connections, especially when it comes to money transactions. Secondly, be aware of the scams. Never send your money to an unknown account. Also, don’t use PayPal for large purchases such as cars, houses, etc.

And lastly, there are a few things you can do to protect yourself. Enable two-factor authentication, use credit cards instead of debit cards, keep your software updated, and deal only with verified buyers or sellers. 

Which country uses PayPal the most?

The majority of PayPal’s users come from the US, in other words, 43.86%. 

When it comes to the other parts of the world, Europe has the highest number of PayPal users. The UK is the leader with 26 million users. 

Honorable mentions include Germany (23 million), France (9.5 million), Italy (6.8 million), and Spain (5 million).

Is PayPal a profitable company?

PayPal is more than a profitable company. Why? First of all, 2020 was the record year for the company that, despite the pandemic, managed to reach $1.57 billion in net income (in the last quarter). This was three times more than 2019’s $507 million the company earned.

Secondly, PayPal’s GAAP earnings per share also witnessed an increase of $1.32, more than the initially estimated at $0.66 per share.

How many users does PayPal have in 2019?

The company had 305 million users in 2019. That’s 38 million more than it had in 2018, and 72 million less than it had in 2020. 

The first time PayPal managed to surpass 100 million users was in 2006. On that note, the company’s 10th anniversary marked its record of 150 million users. 

How many transactions does PayPal use per year?

In 2020, PayPal can pride itself on 15.4 billion transactions. From 2012 to 2020, the number of payment transactions has constantly been growing. It grew from 3.2 billion (in 2013) to 12.4 billion (in 2019), representing a 25% year-on-year growth, and finally to 15.4 billion.

The Bottom Line

Despite its rivals, all of the ups and downs during its long reign on the electronic payment market, PayPal statistics indicate that this financial giant is not going to slow down any time soon. 

With remote and freelance workers, merchants, and professionals using PayPal’s services on a daily basis, the company will surely be there to support us for years to come.

Sources:

 

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Mirjana is an experienced content writer with a master’s degree in English philology and literature. An avid reader, dark chocolate connoisseur, and coffee addict, she is passionate about writing quality content based on thorough research and facts. Health, animals, literature, and human relationships are just some of the topics she has covered so far.

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