PayPal Core to Surpass $1 Trillion in Payment Value in 2022
Online payment platform PayPal is poised for strong growth next year in terms of both transaction value and users, according to Insider Intelligence. The pandemic has accelerated demand for touchless payment apps, solidifying PayPal as the worldwide leader in the space. Following double-digit growth in 2021, total transaction value on PayPal’s core platform will jump 22.3% next year to reach $1.144 trillion globally, surpassing the $1 trillion mark for the first time.
“Eager to keep up with Square and other competitors, PayPal is investing aggressively in its product,” said Oscar Orozco, director of forecasting at Insider Intelligence. “It is acquiring overseas competitors and offering consumers multifunctionality in one app, which we expect to drive transaction value higher.”
“We expect PayPal to continue growing at a strong rate, with consumer interest in flexible payment options rising. The pandemic has fueled consumer demand for fewer touchpoints in-stores and easier checkout processes online,” said Jaime Toplin, senior analyst at Insider Intelligence. “As cash usage falls and e-commerce skyrockets worldwide, digital wallets are becoming even more relevant. PayPal is toward the front of the pack as merchants work to keep up by enabling acceptance and consumers seek out digital options with a wide reach.”
Also noteworthy in 2022, 34.1% of the US population will use PayPal, surpassing one-third for the first time. “PayPal’s penetration into the US market has likely been driven in part by the launch of its new super app, which bundles a wider variety of its services into one destination,” Toplin said. “This can make the giant’s offerings more convenient and compelling for users and might enable product discovery for existing users.”