Taking a cut from payments saw PayPal post AU$9.5m in profit down under
PayPal has made the financial results for its Australian operations available, with the local arm of the payments company reporting AU$9.5 million in after-tax profit for 2018.
The profit was a leap from the AU$666,685 total recorded in 2017.
For the year ended December 31, 2018, the "rendering of services" saw PayPal produce AU$594 million in revenue.
According to its financials, the principal activity of the company during the year was the "provision of a secure online payments network".
The company earns transaction fees from processing transactions for customers. Revenue resulting from a payment processing transaction is recognised once the transaction is complete, PayPal explained.
It listed AU$534 million of its AU$594 million revenue as the total cost involved in providing such services for the year.
Profit before tax was AU$13.6 million and PayPal Australia's income tax expense was AU$4 million.
In 2017, PayPal did not pay any tax, listing AU$2.7 million next to the income tax receivable line item.
For 2018, receipts from customers totalled AU$615.6 million; while payments to suppliers and employees totalled AU$103.7 million.
The immediate parent entity of PayPal Australia Pty Ltd is PayPal Pte Ltd, a company registered in Singapore. Its ultimate parent entity is PayPal Holdings Inc, a company registered in the United States.
Globally, PayPal reported revenue of $15.45 billion for 2018.
The company ended the fourth quarter of 2018 with an active account base of 267 million, after adding 13.8 million users in Q4.
"In 2018 we set new benchmarks for the company for revenue, net new active accounts and engagement across our platform," said Dan Schulman, president and CEO of PayPal. "We launched new products, strengthened existing relationships, and entered into new strategic partnerships with some of the biggest and most influential global brands in technology, retail, and finance."
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