PayPal Holdings, Inc. (NASDAQ:PYPL) is set to unveil its fourth-quarter 2023 results on February 7.
The company’s robust portfolio strength has been pivotal in fostering enduring and trusted connections with both merchants and consumers. Its versatile two-sided platform facilitates the establishment of direct financial relationships with customers and merchants alike.
These factors are anticipated to have made significant contributions to the Total Payment Volume (TPV), a crucial growth metric for PayPal.
In the previous quarter, TPV witnessed a 15% year-over-year improvement on a spot rate basis and a 13% rise on a currency-neutral basis, reaching $387.7 billion.
For the fourth quarter of 2023, the Consensus Estimate for TPV stands at $403.53 billion, indicating a 12.9% year-over-year growth.
Portfolio Strength: A Key Driver
PayPal’s persistent efforts to fortify its service portfolio likely garnered significant traction among diverse customers in the fourth quarter
During the quarter, the company introduced a feature allowing customers to seamlessly add their PayPal and Venmo credit or debit cards to Apple Wallet, enabling secure and swift payments via iPhone or Apple Watch while still enjoying cashback and rewards.
Moreover, the strengthening monetization endeavors of Venmo are expected to have positively impacted the company’s TPV. The growing popularity of One Touch among merchants, supported by its robust mobile checkout services, is projected to have propelled PayPal’s mobile TPV growth in the fourth quarter.
Additionally, the company’s advancements in cryptocurrency, coupled with the integration with Venmo and the expansion of its cryptocurrency service’s global presence, are likely to have contributed significantly.
The increasing traction in PayPal’s buy now pay later solution is anticipated to have further bolstered its quarterly performance.
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