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PayPal posted success across all business segments in its Q1 2016 earnings presentation , held Thursday night.
The firm added 4.5 million active accounts in Q1, bringing its total to 184 million users, and increased its total payment volume (TPV) to $81 billion, marking a 31% year-over-year (YoY) increase.
PayPal is working to become an everyday essential full-service global financial platform for consumers, according to CEO Dan Schulman. That could help it stay competitive as an older player in an increasingly crowded digital and mobile payments landscape. And PayPal seems to be moving toward this goal, as evidenced by progress in several key focus areas. PayPal consumers are more engaged than ever before. PayPal processed 1.4 billion transactions during Q1 2016, marking 26% YoY growth. And the number of transactions per active account increased to 28, up from 25 in the same period last year. That means consumers are turning to PayPal to make purchases more frequently.
Products that make it easier for users to purchase on mobile could drive that engagement. Those include PayPal’s new app and tools like one-click buy button OneTouch, both of which remove friction and make it simpler for users to purchase across their mobile devices. And that could bolster PayPal’s success over time, since the firm believes that a strong value proposition — added convenience — will lead to increased consumer use, which will, in turn, cause more merchant partners to begin accepting PayPal as a payment option.
The firm is also doubling down on international growth in order to continue to accelerate TPV and add more services. Only 56% of PayPal’s active accounts are based in the US, indicating a strong […]
