PayPal Active Customers Accounts Growth (2016-2023)

This statistic highlights PayPal’s Active Customers Accounts Growth, reported on a quarterly basis from Q2 2016 onwards.

PayPal Holdings Inc. is an American company that operates a global online payments system. It supports online money transfers serving as an electronic alternative to traditional methods of payment using paper. Max Levchin, Peter Thiel and Luke Nosek originally established PayPal as Confinity in 1998. The company later merged with Elon Musk’s online banking company X.com. PayPal replaced the name Confinity in 2001. They operate as a payment processor for many commercial and personal uses and charge a fee for certain benefits. Solutions provided by it include products like PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant. PayPal became a wholly owned subsidiary of eBay in 2002.

As of Q1, 2020 there were 325 million active PayPal accounts worldwide. The growth rate for active users is 17% year on year.

PayPal Active Customer Accounts Growth Quarterly Data

The quarterly data for new accounts added is as follows:

In Q2 and Q3 of 2016, PayPal active accounts increased by 4 million in each quarter.  5 million new accounts were added in the fourth quarter. The number of accounts added grew in 2017 to 6 million in the first quarter. 9 million in the second quarter, 8 million and 9 million in Q3 and Q4 respectively. In 2018 the new accounts added amounted to 8 million in the first quarter. 7 million in the second quarter. Whereas it scored 10 million and 13 million in the last two quarters. 10 million new accounts were added in the first quarter, 9 million in the second quarter in 2019. The last two quarters had a growth of 9 million and 10 million respectively. In the first quarter of 2020 PayPal added 20 million new accounts which was an all time high for  the PayPal active customers accounts growth.

The number of PayPal active customer accounts grew by 2.17% in the second quarter of 2016, 2.13% in the third quarter and 2.60% in the fourth quarter. In 2017 the number of accounts grew by 3.05% in the first quarter, 4.43% in the second quarter, 3.77% in the third quarter and 4.09% in the fourth quarter. The next year i.e. 2018, the number of new accounts increased by 3.49% in the first quarter, 2.95% in the second quarter, 4.10% in the third quarter and 5.12% by the end of the last quarter. Consecutively, in 2019 active accounts grew by 3.75% in the first quarter, 3.25% in the second quarter, 3.15% in the third quarter and 3.39% by the end of the year. In the first quarter of 2020 the number of active users increased by a whooping 6.56%.

Conclusion

The Covid-19 pandemic can be deemed as the reason of the incremental increase in the number of new PayPal active accounts in the first quarter of 2020. Paper cash has been identified as a means of transmission of the virus. As a result individuals are now skeptical to use the same. Therefore, leading to an increase in digital payments across the world. With the world moving towards digitization we can only expect the number of users and number of transactions through PayPal to increase in the coming few years.

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