One of the most well-known digital payment services, PayPal Holdings Inc. (PYPL), allows users to make digital and mobile payments anywhere in the globe. The business' platform consists of payment options provided by reputable companies, such as the original PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hywallet, Hy, and Paidy.
PayPal competes against both bigger, more powerful firms and smaller, more nimble rivals in the fiercely competitive global payments market. Regulators are scrutinizing and monitoring the sector more and more as it changes quickly.
Early in February, PayPal released its financial figures for Q4 of its fiscal year (FY) 2021, which was the three-month period ending December 31, 2021. In comparison to the same quarter last year, the firm reported net income of $801 million, a 48.9% decrease. To $6.9 billion, revenue increased 13.1% year over year (YOY). Compared to net other income of $896 million in the same quarter last year, PayPal had a net other expense of $344 million in the most recent quarter. The current fourth quarter's net income was negatively impacted by such charge.
3.2 million of PayPal's 9.8 million Net New Active Account additions during the quarter came from the company's most recent purchase of Paidy. The total payment volume (TPV) increased 23% year over year to $339.5 billion. PayPal said that FY 2021 was one of its strongest years ever, stating that its TPV for the entire year was $1.25 trillion and that it had introduced more new goods and experiences than ever before.
PayPal aggregates its financial performance data across all segments and does not segregate it into distinct reportable parts. The business does, though, break down its income into two distinct categories: transaction revenues and revenues from additional value-added services. PayPal's overall revenue is mostly made up of transaction fees.
The amount charged is determined by the level of activity, or TPV. In Q4 FY 2021, PayPal's transaction revenues increased 12.2% to $6.4 billion. More than 92% of the company's overall sales come from this area.
Along with interest on some assets that underlie client balances, the corporation also receives fees and interest on its portfolio of loan receivables.