PayPal are one of the world’s biggest online payment gateways, but that doesn’t mean they’ve run out of room to grow. In fact, if their Q2 earnings report is to be believed.
PayPal absolutely smashed expectations in Q2 2017, marking another in a series of better-than-expected quarters for the company. With a raft of new advertising and a more aggressive push into real-life payments, the company posted $106 billion in total payment volume (TPV), which is the amount of money which went through their service. That’s an increase of 26% year-on-year, and a seriously impressive number.
Additionally, the company’s customer growth was also extremely healthy, with 6.5 million new customers signing up for accounts, taking the total number of customers up to 210 million worldwide. That’s alongside annual transactions increasing by 10% for the one-time Elon Musk owned company.
That growth has come thanks to a number of things, but it’s impossible to play down the role that new partnerships have played in their growth. In the past two years alone, the firm has signed 18 partnerships with payment firms and companies across the sector, marking a significant change from the kind of seek-and-destroy tactics they operated earlier in their existence.
Most notably, PayPal have partnered with major card providers to add further payment options to their wallet, making it easier for customers to fund their online payments through PayPal, rather than filling out their card details on every website. However, it doesn’t end there, because they’ve been working hard on in-store payments, as well as getting a foothold on services like Facebook Messenger and Baidu. More recently, the company have partnered with Google Pay and Samsung Pay to let customers pay for goods in the real world with their PayPal account.
The calculated risk of spreading their business across so many services has paid off handsomely for the company. By enabling new use cases for their service, PayPal have begun to move away from being a mere online payments firm towards a ubiquitous consumer payments company with the full range of payment options that a bank might have.
Indeed, by taking on online payments earlier and better than anyone else, PayPal were able to dominate the online payments space, developing a large enough name and enough funding to really push out into the wider world. Today, the company are extremely well-liked, though they retain issues with security – particularly phishing scams.
The contact details for PayPal are typically utilised for that purpose, but recent months have seen a strong rise in the number of people taking up credit options with PayPal, which has also raised the number of calls to the number.
Outside of the UK, PayPal’s free peer-to-peer money sending service Venmo has been picking up strong traction. However, because customers don’t pay any fees for sending any money through the service, but PayPal do, the company are presently writing off these costs as they work towards a scale where monetisation can be possible.