How Many People Use PayPal? Top 20 PayPal Statistics for 2023

It has now been almost a quarter-century since PayPal emerged as the main outlet for processing online payments, including peer-to-peer transfers. And while almost every aspect of the online landscape has changed over that time, one fact remains - PayPal is still the number one.

Over 83% of consumers now expect the option to pay bills online, and PayPal statistics show that the fintech company is a key player in fulfilling those expectations. In addition to paying bills, it facilitates peer-to-peer purchases, borrowing, credit agreements, and so much more.

Here’s what you need to know about one of the world’s biggest fintech companies.

The Key PayPal Stats for 2023 - Editor’s Choice

• Over 426 million active PayPal accounts are currently used. 
• PayPal boasts a market share of just over 50% in the online payment processing arena.
• Users over 50 years of age are the fastest-growing demographic of PayPal customers.
• In 2021, PayPal processed 57.61 million transactions per day.
• Over 500,000 websites currently list PayPal as one of their accepted payment methods.
• 9% of US children had a PayPal account in 2020.
• PayPal’s annual revenue surpassed $20 billion for the first time in 2020.

PayPal Usage Stats

PayPal was one of the first fintech companies to capitalize on the digital revolution toward the end of the 20th century, not least by connecting with eBay (who would later buy the company for $1.5 billion before relinquishing it again) and has continued to thrive in the 21st century. As more and more people turn to online shopping, the company’s rate of growth has been accelerated further still.

As of Q4 2021, there are 426 million active users on PayPal worldwide.

(Statista)

Stats on PayPal users show that the figure has grown by over 120 million since Q4 2019. The popularity of PayPal continues to grow at a rapid rate and is projected to top 500 million before the end of 2023.

PayPal is available to users in 200 countries and territories around the world.

(PayPal)

PayPal is available to consumers and merchants in 200 countries and regions from Africa, the Americas, Asia Pacific, and Europe. Furthermore, it handles payments in 25 currencies.

PayPal active merchant accounts topped 29 million in 2020.

(DMR)

PayPal user statistics indicate that familiarity gained by connecting to a massive network that boasts a rich history can put consumers at ease.

80 million people use PayPal’s One Touch automatic sign-in feature.

(Business of Apps)

The feature allows users to log in without using their email and password, highlighting the service’s commitment to convenience as well as advanced security.

The most recent PayPal statistics show that consumers are 54% more likely to complete an online transaction if the merchant accepts PayPal.

(Ipsos)

A study by Ipsos highlights the importance of establishing trust by offering a familiar payment method such as PayPal, especially in situations when the brand is not a well-known one.

As of 2020, over 50 million users have started using Venmo.

(Business of Apps)

Venmo user statistics show that this app, owned by PayPal since 2012, has grown from 3 million users in 2015 to 52 million in 2020. It’s primarily used by families and groups of friends for splitting bills and subscriptions.

In 2019, the average PayPal user completed 40 transactions using the service per year.

(Business of Apps)

Given that the eCommerce industry has continued to grow since then, millions of users will now complete far more than 40, meaning the average person will now use PayPal on a roughly weekly basis.

PayPal is installed on over two-thirds of all smartphones.

(Cornerstone)

In addition to dominating desktop usage, PayPal facts show that the payment processing app is used on 65% of all smartphones. This easily outweighs the figures for Apple Pay, Google Pay, and other solutions on the market.

PayPal Market Share Statistics

The latest PayPal statistics may indicate that the company’s market share isn’t as big as it was 20 years ago, primarily because so many alternative payment processing channels have since entered the marketplace.

However, the world’s biggest - and widely considered best - solution retains an advantage over the competition.

PayPal boasts a 50.32% market share of the online payment processing environment.

(Statista)

Stripe is second on this Statista list from September 2021, accounting for 15% of the market, with Braintree, Amazon Pay, and Shopify Pay Installments also holding sizable slices of the payment processing software market.

PayPal stocks closed at an all-time high of $308.53 on July 23, 2021.

(Macrotrends, Yahoo! Finance)

Latest PayPal stats show that the company continues to grow in size and outperform the other payment processing companies within the fintech arena.

PayPal’s annual revenue hit $21.45 billion in 2020, up from $17.77 billion in 2019.

(Statista)

Annual revenue was $5.99 billion in 2012 and $9.25 billion in 2015. Its growth over the past five to 10 years has outperformed its competitors to keep the company at the number one place on the list of biggest and most relevant payment processing outlets.

Almost one in four online transactions in the US are completed with PayPal.

(Statista) 

A 22% market share of all US-based online transactions highlights the firm’s importance in the daily lives of millions, not least because the volume of online transactions has swelled in recent years.

PayPal is listed as an accepted payment method on over 500,000 websites.

(Trulypost)

In July 2021, just over half a million websites accepted PayPal, making it one of the most commonly accepted online payment options.

PayPal invested over $2 billion in R&D technology and product development in 2019.

(Statista)

Figures show that the investment almost doubled from 2017 to 2018, reaching $1.83 billion. This dedication to innovation and constant improvement keeps PayPal at the top of the tree for performance, security, and client satisfaction.

PayPal’s team counts 30,900 employees.

(PayPal, Craft)

Most of PayPal’s employees (roughly two-thirds) work in Technology, while a sizable portion (about one-quarter) works in Sales. About 5% are employed in customer care.

PayPal User Demographics 

PayPal’s sustained popularity can be attributed to its ability to stay at the forefront of tech advancements to promote convenience and accessibility for an array of audiences.

The user trends relating to who uses PayPal - and, perhaps more importantly, how - are eye-opening. The trends additionally give some insight into the key PayPal revenue statistics.

The over-50s demographic is PayPal’s fastest-growing user base segment. 

(Electronic Payments International)

PayPal’s growing popularity with older users can be attributed to several factors. They are more tech-savvy than adults over 50 of 20 years ago, while the tech itself has become more accessible. Consumer habits have also evolved in recent years.

PayPal is used by over 70% of adults of all ages in the US.

(Statista)

In 2016, PayPal was used by 75% of millennials, 85% of Gen X, 73% of baby boomers, and 71% of retirees.

9% of US children had a PayPal account in 2020.

(Statista)

This makes PayPal one of the most commonly held financial instruments by children under the age of 18.

57% of German online shoppers prefer PayPal over alternative digital payment solutions.

(Ecommerce News)

The popularity of PayPal is further highlighted by the fact it has the largest market share in the major European countries, such as the UK and Germany.

Finally, to end this list on a lighter note, here’s one bonus fun fact about PayPal that doesn’t tell us much about the company’s performance metrics and indicators, but we think our readers will appreciate it nonetheless:

PayPal once accidentally credited $92 quadrillion to a man.

(CNN Business)

As far as admin errors go, it’s a big one. For a short time, the man was technically the world’s richest person. Unfortunately for the guy, it didn’t last.

The Takeaway

These PayPal statistics confirm that the payment processing company remains the market leader by a country mile and continues to grow in membership numbers and revenue alike. The company’s accessibility, speed, familiarity, and global presence make it a firm hit with users from all demographics. 

Whether you’re a business owner looking to accept online payments or a consumer hoping to use peer-to-peer and consumer-to-business payments, PayPal is the answer.