PayPal's Quarterly Revenue Surges 19%

Online payments service PayPal’s revenue grew to $2.54 billion, an increase of 19% year-over-year (YoY). The company’s total payments volumes also grew to $81 billion for the quarter, an increase of 29% YoY.

PayPal’s acquisitions of other online and mobile payments services like Xoom and Venmo have allowed the company to expand its user base, since it spun off from eBay a year ago.

Revenues earned by PayPal this quarter slightly outperformed analyst expectations. The news caused stock prices to bump up 4% on Wednesday after the announcement to $41.65.

Venmo -- a popular peer-to-peer payments app -- saw volume grow to $3.2 billion, an increase of 154% YoY. PayPal has announced that its program that will allow users to check out using the service with online merchants will be available to all users by the second half of 2016.

The company is also using Xoom to connect with emerging markets -- for example, linking with M-pesa, a massively popular digital payments service in Kenya. Xoom’s target user segment is people who work in developed countries who want to be able to send money home to their families in developing countries.

Active accounts increased to 184 million for PayPal, an increase of 11.5%.

PayPal has struck a number of deals with large platforms like Facebook Messenger and Alibaba Wholesale to drive growth.

The payments space has been heating up in recent months, but it appears that PayPal has found a way to differentiate itself from the crowd with its offering.

 

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