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Reflecting the rapid transition to digital payments, PayPal has reported its strongest growth in total payment volume (TPV) and revenue in its history, coupled with strong growth for Venmo, its P2P app.
Building on a record-breaking second quarter performance, PayPal’s revenue in the third quarter of 2020 grew to $5.46 billion, up 25% from the same quarter one year earlier; and TPV reached $247 billion in the quarter, up 38% from $179 billion in the same quarter one year earlier (36% on an FX neutral basis). Supporting this explosive growth was a new record for transactions processed, at 4 billion for the quarter — the highest level in the company’s history.
This performance puts PayPal in stark contrast to many other companies that saw earnings plunge at the start of the pandemic. Even other payment companies, with strong digital capabilities, suffered if they were active in hard-hit verticals such as travel. By comparison, PayPal’s second quarter (the first full quarter since the start of the pandemic) was its best ever since the company went public in 2015.
Digital down under
The Reserve Bank of Australia is working with Commonwealth Bank of Australia, National Australia Bank, Perpetual and ConsenSys Software on a central bank digital currency experiment.
The project is determining the effectiveness of a wholesale version of a CBDC operating on a distributed ledger, reports Finextra. A tokenized currency will be designed to execute funding, settlement and repayment of a syndicated loan on an Ethereum-based platform, an initial step toward a formal CBDC project.
While CBDC projects are progressing in countries such as China and the Bahamas, there’s not a consensus that