Paypal, one of the leading payments platforms in the world, says it had net revenue of approximately 6.5 billion USD in Q1 2022. The company reportedly made 8% more than it did during the same period in 2021, and exceeded earlier forecasts on the market performance.
However, the firm’s operating income reduced by about 32% to approximately $710M. Paypal declared a net proceeds of $509M, with $0.43 as its revenue on each share, at a 53% year-over-year decrease.
Additionally, the payments software’s adjusted proceeds reduced by 28%, to stand at $0.88 on each share. Paypal recorded a remarkable increase in the amount of payments it processed $323B within the first quarter in 2022. The quarter’s trading volume reportedly increased by 15%, compared to the same period last year.
Despite the current positive performance of the platform, Paypal says that the amount of deals on its platform may plummet because of the currencies’ depreciation and Russia’s invasion of Ukraine. Further reports say that the rate at which deals on Paypal grew significantly dipped in Q1 2022.
Projections for the Rest of the Year
The firm says it’s expecting its revenue to increase by 11-13% in fiscal 2022. However, the forecasts say the company’s earnings may reach 15-17% outside payment transactions from eBay.
Additionally, Paypal says it maintains a reserved outlook with their projections and forecast activities. It says it expects to see a combined trading volume surplus of $1.4T.
Senior Official at the European Central Bank Calls for Global Regulations on Crypto Payments
Speaking about digital payments, a senior official at the European Central Bank (ECB), Fabio Panetta, has called on countries worldwide to regulate the cryptocurrency industry, with regard to payments, investing and holding assets.
He made the recommendations while giving an address at a US university, where he likened the spiraling interests in virtual assets to the gold rush of the 19th century. Panetta said during his address that a growing unbelief in the conventional financial system has led to a “virtual” gold rush, which, the official says, is beyond the control of government organizations.
In his address to different governments worldwide, Panetta observed that the global virtual assets’ industry now has a higher market cap than the subprime mortgage markets in 2008 ($1.3 trillion), which instigated the 2008 economic downturn.
Continuing his rhetoric on the digital assets’ world, Panetta alleged that most cryptocurrency payments utilize middlemen, against the professed principles of DeFi. He further said that the unreliability of virtual currencies is in exact opposite to what their enthusiasts promise the global economy.
Panetta called on international agencies to coordinate efforts on regulating settlements, investments and holdings in virtual assets. He added that government regulations should ensure they subject virtual assets to similar standards as they are placed on the conventional financial system.
While calling on countries to introduce digital currencies based on the fiat money, Panetta says the ECB is concentrating on a virtual Euro to allow EU residents to make digital settlements within the concerned regions. Such digital currencies, Panetta says, would help satisfy consumers’ expressed interests in quick settlements and a virtual economy.