In a recent report, PayPal reveals that its fastest-growing demographic are people over 50 years old. The company describes this as “silver tech.”
As the world struggles to cope with the coronavirus pandemic, people are looking to a lot of alternative options. Now, PayPal is seeing a rise in usage from people who are over the age of 50. The tech giant reports that this surge has been steadily growing for the months of March and April.
Because of the virus outbreak, people around the world are now looking for cashless alternatives. Aside from the usual credit and debit card system, PayPal is also offering a good alternative.
A sudden surge of users
PayPal reports the surge of the so-called “silver tech” has helped the company recover to the pre-coronavirus level. Market experts agree that this sudden surge is a normal reaction as people are shifting towards online shopping.
The online payment platform is also an easy and secure way to transfer funds to friends and family. In a statement, PayPal chief finance officer John Rainey says:
“We think that these are some sustainable trends in our business.”
The surge is also a great boost for the company as older generations are known for being top spenders. The sudden shift in demographics is happening all over PayPal’s platform, as well as its subsidiaries. The same growth has been steady in the company’s peer-to-peer payment app Venmo.
Venmo is a particularly interesting side note. The app has more than five million users, but it has yet to report a profit for years. With the surge of usage from the older generation and their massive spending power, Venmo could probably turn things around.
The numbers are good for PayPal
Due to the coronavirus pandemic, many governments are now issuing lockdown orders. This means that people cannot go out to buy the necessary supplies. As such, they are turning into online platforms to buy supplies and other needed resources.
PayPal looks to make it easier for you to use contactless payments in stores https://t.co/UHZAfQmihx
— CNET News (@CNETNews) May 19, 2020
Since the surge of the pandemic, there is also a related surge in the order of online business activities. Since people usually use digital payment options, PayPal has been one of the most popular.
A recent survey reveals that more than 70% of people under 50 are using the platform. On the other hand, 50% of people above the age of 50 use the platform for their transactions.
Additionally, as people are starting to work at home, digital payment systems will be integral. It appears that despite the current pandemic, PayPal has a good foreseeable future.
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