PayPal processed $132 billion in Q1 growth tear (PYPL)

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PayPal Q1 2018 markedanother quarter of ongoing, meaningful gains in the company’s key areas.

Volume is on the rise. PayPal saw$132 billionin total payment volume (TPV) in the quarter, up 27% year-over-year (YoY) on a constant currency basis, marking a slight acceleration from the 25% annual growth it saw in the prior Q1. That gain likely comes from a 35% increase in active users, as well as a 25% increase in total transactions, which gave the company a boost.

But engagement is growing as well.The company isn’t just growing by adding new customers — it’s also better engaging its entire user base. The number of average annual transactions per account ticked up to 34.7 in Q1, up 8% from the prior Q1, marking an increase of nearly one transaction per customer from the 33.6 annual transactions posted in Q4 2016.

Three areas are driving PayPal’s gains, according to CEO Dan Schulman.

Partnerships:
continued
New offerings:
Global expansion:

These initiatives combined should help PayPal maintain its current growth tear. As the firm works to become a more omnipresent part of its customers’ financial lives, continuing to boost its performance in these areas will help the firm add users by giving new groups access or encouraging sign-ups. The firm can then work to keep these customers by providing tools and services that will give them reasons to return, either in lieu of or in conjunction with their other financial providers. That should continue to lift the firm’s business in meaningful ways in the short- and long-term.

Digital disruption is rocking the payments industry. But merchants, consumers, and the companies that help move money between them are all feeling its effects differently.

For banks, card networks, and processors, the digital revolution is bringing new opportunities — and new challenges. With new ways to pay emerging, incumbent firms can take advantage of solid brand recognition and large customer bases to woo new customers and keep those they already have.

And for consumers, the digital revolution is providing more choice and making their lives easier. Digital wallets are simplifying purchases, allowing users to pay online with only a username and password and in-store with just a swipe of their thumb.

Dan Van Dyke, senior research analyst for Business Insider Intelligence, Business Insider's premium research service has written a detailed report that explores the digital payments ecosystem today, its growth drivers, and where the industry is headed. The report also:

PayPal processed $132 billion in Q1 growth tear (PYPL)

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