PayPal's transaction revenue in the second quarter reached $5.8 billion, and it is about to launch a crypto "super app"

According to Coindesk, PayPal's transaction revenue in the second quarter reached US$5.8 billion, a year-on-year increase of 17% and a month-on-month increase of 3%.

PayPal derives some of its transaction revenue from the company’s buying, selling and holding of cryptocurrencies, but the company excludes cryptocurrency payments from its total payment volume.

The payments giant also added 11.4 million new active accounts in the second quarter, down from 23.3 million in the same period last year and lower than the 14.5 million it added in the first quarter.

The company has reported in the past that customers who purchased crypto through the platform logged into PayPal twice as often as before they purchased crypto.

In April this year, PayPal added cryptocurrency buying, selling and holding options to its peer-to-peer payment platform Venmo.

“We are seeing broad adoption of crypto transactions on Venmo,” PayPal CEO Dan Schulman said on an earnings call.

PayPal is also working on transferring cryptocurrencies to third-party wallets and creating a more seamless tax filing process, Schulman said.

He said: “We are thinking about what the next generation of the financial system looks like and how we can help shape it. We are working with regulators and central banks around the world.”

During PayPal’s second-quarter 2021 investor update call today, CEO Dan Schulman said the initial version of the company’s super app wallet is “code complete” with plans to roll it out across the U.S. in the coming months.

The super app wallet will feature high-yield savings, early access to direct deposit funds, messaging capabilities, additional crypto features, and more.

Each wallet will be unique, Schulman said, and driven by advanced artificial intelligence and machine learning capabilities.

PayPal reported that as of June 30, the company had more than 400 million active user accounts and a total payment volume of $311 billion in the second quarter of 2021. PayPal's payment company Venmo, which launched crypto transactions in April, had a total payment volume of approximately $58 billion in the second quarter of 2021 and 76 million active accounts.

PayPal CEO said: “We are one of the few payment companies that allows consumers to use cryptocurrency as a funding source.”

Earlier this month, PayPal announced it would increase the cryptocurrency purchase limit for certain users in the United States from $20,000 to $100,000.