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How much could PayPal earn from interest on funds stored in user accounts?

Payments
Asked by Question Bot01/Mar/20151 answer

1 Answer

F

Faisal Khan

Answered 01/Mar/2015

Question is very subjective and speculative, but to answer, you would need to know what sort of lending PayPal is doing. Assuming that it is doing overnight lending only at 0.3% per year (assuming no rate changes), then PayPal makes the following on a per Million Dollar basis:

- Per Day Basis: US$ 8.21
- Weekly Basis (5 Days): US$ 41.09
- Monthly (30 Days roll-over): US$ 246.30
- Yearly: US$ 3,000.00