PayPal's latest earnings report was largely silent on cryptocurrencies, but CEO Alex Chriss said on a call with analysts Tuesday morning that the company's stablecoin PYUSD The use of “for cross-border payments'' is “one area where we believe there are compelling unit economics and compelling unit economics,'' he said. The market is looking up. ”
The comments come after PayPal announced earlier this month that its cross-border money transfer service, Xoom, would allow customers to send PYUSD internationally without fees.
Despite becoming the first major financial services company to issue its own stablecoin last August, the company did not detail its crypto-related revenue in its first-quarter 8-K filing. , it showed that PayPal is growing overall. This strong result was due to more users making payments with their PayPal wallet, and the total amount increased by 14% year-on-year to his $403.9 billion, exceeding analysts' expectations. Active his number of transactions per user increased by his 13% and net revenue reached his $7.7 billion, an increase of 9% year over year.
According to CoinGecko data, PYUSD is the 11th largest stablecoin by market capitalization, with over $327 million. Since the announcement of the Xoom fee waiver, PYUSD's market capitalization has increased by over 70%, quickly outpacing its peers. For example, Ethana’s USDe, the fastest stablecoin in crypto history to reach $2 billion, has grown by about 50%.
One reason for the minimal mention of PYUSD could be the uncertainty surrounding the US regulatory situation. “Regulators are keen to set an example for market participants. They don't want to draw attention to themselves,” said Boaz Sobrado, fintech analyst at Capital.com. luck With notes. He added that although market capitalization is increasing, there is a lack of support for low-fee blockchains, which means there is little adoption of organized money transfers.
In fact, while Chris highlighted the company's long-term remittance strategy, the token could currently prove more popular due to the passive income generated by the tokenization of US Treasuries.
Chris took over as CEO last September, and although he has not spoken publicly about cryptocurrencies so far, he has taken a fairly bullish stance.he tweeted “Sold 2 Bitcoins on @Coinbase! Best ROI ever!!!!!!!” His X profile still has a link to his Ethereum wallet holding about $90 worth of Ether. Masu. Under Chriss, PayPal also announced in January that it had invested $5 million worth of PYUSD into Mesh, a cryptocurrency startup that helps users move their digital assets.
The company expects diluted earnings per share for the remainder of 2024 to be approximately $3.65. That compares to $3.84 last year, which included gains on the sale of a portion of the company's investment portfolio and on the sale of Happy Returns, which helps consumers return unwanted items. PayPal stock was nearly flat on Tuesday, but is up more than 10% this year.
“2024 remains a year of transition, as we advance key strategic initiatives, including delivering cost reductions and reinvesting appropriately to position the company for consistent, high-quality, and profitable growth. We are focused on execution,” Chris said in a statement accompanying the quarterly results.
