Paypal reported 237 million active customer accounts for the quarter ending 31st March 2018 (Q1 2018), adding 8 million new active accounts for the quarter. The global payments company also beat analysts’ estimates as it announced revenue of $3.685 billion for the first three months of 2018 (Q1 2018), up by 24% YoY from $2.975 billion in Q1 2017.
There were concerns about Paypal’s future after eBay, PayPal’s former parent company and longtime payments processor, said in January that it would gradually shift its business to Adyen BV, a startup based in the Netherlands. PayPal will remain a checkout option for eBay shoppers until at least July 2023, but Adyen will gradually take over processing of eBay payments, beginning this year in North America.
Active User Base: 237 million active customer accounts, up 15% year on year. These are accounts that have been active for 12 months.
Net additions: 8 million net new active accounts added in the quarter, up 35% YoY.
Transactions per active customer account: 34.7, up 8% year on year.
Total Payments Volume: $132.3 billion in this quarter. That is an increase 32% YoY up from 100.6 billion in Q1 2017.
Average Payment Value: $60 per transaction
Transaction revenue (transaction fees on payments) grew 23% year on year, while revenue from other value-added services grew 32%. Other value-added services include interest, fees on PayPal Credit, loans receivable, subscription fees, gateway fees, revenue from partnerships etc.
Mobile: In Q1 2018, PayPal processed $49 billion in mobile payment volume, representing 52% growth year over year.
P2P: Person-to-Person (P2P) volume grew 50% to nearly $30 billion, and represented approximately 23% of TPV in the first quarter. Venmo, the company’s social payments platform, processed more than $40 billion of Total Payments Value over the past twelve months. In the first quarter, Venmo processed more than $12 billion of TPV, growing 80% over the same period last year.
One Touch: By the end of Q1 2018, 92 million consumer accounts opted into One Touch (which allows users to remain logged into the system to make payments). At the end of the first quarter this year, 8.6 million merchants offered One Touch.
Merchant services (non-eBay related) which accounts for around 87% of PayPal’s total volume was up 30% YoY.
Bloomberg reported, Dan Schulman, PayPal’s chief executive officer, has been expanding partnerships with companies once viewed as threats, like Apple and Facebook, and making acquisitions to strengthen its position. He’s pushing for PayPal to become a more versatile financial tool, rather than just a payment button on a website, and expand access across the financial services industry. PayPal’s popular peer-to-peer payments system has continued to see strong growth, but it has yet to be a key revenue driver. Schulman said earlier this year that he believes it will make money some day.