In the first quarter of 2021, PayPal’s (PYPL) transaction revenue declined slightly, from $5.68 billion in Q4 to $5.62 billion.
Year over year, transaction revenue increased by 33% at PayPal, up from $4.22 billion in Q1 2020.
Part of that revenue was from the company’s crypto buy, sell, and hold product. The payments giant also added 14.5 million in net new active accounts, down from 16 million added in the last quarter. (The company excludes crypto payments from total payment volume.) PayPal also raised year forecasts for net new accounts, total payment volume, revenue and earnings.
Q1 2021 is the second quarter PayPal has reported earnings including results from its crypto buying and selling product. The company has reported in the past that customers who purchased crypto through the platform have been logging into PayPal twice as often as they were before they could buy crypto.
In April, cryptocurrency exchange Coinbase announced its users could buy cryptocurrency using their PayPal accounts, although the fees on the PayPal feature in COINBASE are significantly higher than other ways of purchasing crypto from the exchange. Also in April, PayPal expanded crypto trading to its Venmo payments app.
This story is developing and will be updated.
