PayPal Reports Strong Growth in First Quarter
PayPal released data about its earnings for the first quarter of 2016, and the company reports strong growth across all sectors. During the first quarter, PayPal added 4.5 million new active accounts to its roster, bringing the total number of users to 184 million.
As for the total payment volume, the company saw a 31% increase over last year. This may partly be due to the surge of new accounts, but it could also be attributed to an increase in transactions. The average number of transactions per account is now 28, up from 25 during the first quarter last year. In total, PayPal processed 1.4 billion transactions in the first quarter of 2016, a 26% increase over 2015.
PayPal’s CEO Dan Schulman said the company is working to increase mobile engagement. Earlier this year, a new version of the PayPal app was introduced, designed to make it easier for users to send money to one another and spend money at online stores. PayPal also launched One Touch, allowing users to approve multiple transactions without having to log into their PayPal accounts each time.
PayPal is also working to increase its international presence. Accounts in the United States now represent 56% of PayPal’s users, indicating solid growth worldwide. The company acquired Xoom in 2015 and saw a 70% increase in net active users during the first quarter. Xoom has a strong worldwide presence and could be a valuable asset to PayPal’s international expansion.
About Bill Hardekopf
Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.