The yellow trend line in the chart below shows the resilience and constancy of this growth even after the pandemic ended. So while it is becoming more of a challenge to acquire new customers, the existing customers using PayPal (or Venmo) are transacting at a higher rate. PayPal’s number of transactions - which also is a key metric to highlight growth in Total Payment volume - has been in a steady upswing throughout the pandemic, and it is still growing: transactions rose 13% year over year to a record 50.1 per active account in Q3’22. The company saw its net new active accounts grow by 2.9M year over year in Q3’22 to a record 432M while customer engagement trends also remained widely positive.Ĭustomer engagement can be measured through the number of transactions the average account conducts to either receive money or pay for goods and services. PayPal’s share price doesn’t indicate this, but PayPal is still growing at a healthy rate.
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However, I believe PayPal is a solid FinTech bet on growing transaction volumes given the enormous size of PayPal’s ecosystem and the firm's strong free cash flow represents deep recession value for investors!ĭata by YCharts Despite growth concerns, PayPal’s key metrics are still trending up Additionally, investors are concerned about an economic slowdown as well as high inflation which is weighing on consumer spending. The reasons for the decline are manifold and include a post-pandemic slowdown, PayPal’s lowered guidance for FY 2022 regarding customer accounts as well as a stronger USD which is making business overseas less profitable for US companies. PayPal ( NASDAQ: PYPL) has been through the wringer in 2022 with shares declining 63% year to date.
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