By the numbers: PayPal’s total payment volume (TPV) increased 9% year over year (YoY) in Q4 2022 and hit $357.4 billion, slowing from a 23% YoY jump during the same period in 2021, per its earnings release.
PayPal exceeded 6 billion quarterly transactions for the first time. Transactions per active account—which PayPal uses as an engagement metric—grew 13% YoY, up from Q4 2021’s 11%.
Net revenues jumped 9% YoY to $7.4 billion. Revenues increased 17% YoY during the same period last year.
How we got here: CEO Dan Schulman—who will retire at the end of 2023—highlighted a few factors that fueled Q4 TPV and revenue growth during the firm’s earnings call.
What’s next? PayPal will focus less on growing customer accounts—one of its previous core goals—and more on cost restructuring so it can allocate more funds toward high-growth initiatives. Other fintechs, like Affirm, are adopting similar strategies.
Related content: Check out our PayPal report to learn about the key factors influencing the firm’s growth.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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