The forecast: Following double-digit growth in 2021, total transaction value on PayPal’s core platform will jump 22.3% this year to reach $1.144 trillion globally, surpassing the $1 trillion mark for the first time.
Dive deeper: The pandemic has accelerated demand for touchless payment apps, solidifying PayPal as the worldwide leader in the space.
- “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.”
- 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.
- Also noteworthy in 2022: 34.1% of the US population will use PayPal, surpassing one-third for the first time.
Looking ahead: PayPal will continue growing at a strong rate as consumer interest in flexible payment options rises due to pandemic-fueled demand for fewer touchpoints in stores and easier checkout processes online. As cash usage falls and ecommerce skyrockets worldwide, digital wallets and payment systems like PayPal will become more relevant than ever.