October 26, 2017
New partnerships and the increasing popularity of the P2P platform Venmo have paced PayPal to higher-than-expected profits in the just-completed third quarter and higher expectations for the rest of the year.
The online payment pioneer late last week reported a 32-percent increase in 3Q 2017 profits compared to the same time a year earlier. Revenue rose 21.4 percent to $3.24 billion. PayPal ended the quarter with 218 million active accounts and 17 million merchant customers.
While several recent surveys found unexpected weakness in mobile payments adoption, online mobile payments are flourishing for PayPal, CEO Dan Schulman said in a call for media and analysts.
“We now have 70 million consumers who benefit from the speed inconvenience of a Single Touch checkout and over 6 million merchants around the world now offer this transformative checkout experience,” Schulman said. “As I mentioned earlier, we processed $40 billion of mobile transactions, accounting for 35 percent of our total payment volume in the quarter.”
Schulman said PayPal processed 9.4 billion transactions on the Venmo platform in the third quarter, 93 percent more than Q3 2016. And, since it now enables users to pay at merchants in addition to paying each other, the company expects even more people to pay with Venmo going forward.