- PayPal's payment volume growth recovered in the second quarter as a record number of new accounts were added.
- And TThe growing user base of PayPal services should help to successfully develop and expand the offer.
Titanium for digital payments had a total payment volume (TPV) of $ 222 billion in the second quarter of 2020, an increase of 30% over the previous year Publication of results. This is the case after the company's TPV only increased 19% year over year Q1 2020 thanks a fall in consumer spending caused by the early days of the coronavirus pandemic.
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However, during the pandemic, digital payments have taken on new meaning as consumers try to limit their potential exposure to the virus, which increases PayPal's performance. As a result, PayPal’s daily number of daily active accounts rose 37% annually, reaching a quarterly usage level comparable to the usage rate between Thanksgiving and Cyber Monday.
PayPal added more new users in the second quarter than in any other quarter in its history, as more consumers and businesses are interested in what it offers due to the pandemic. The company brought in 21.3 million new net active accounts (NNAs), an increase of 137% over the previous year.
This is the case after PayPal added 20.2 million NNAs in the first quarter of 2020, an increase of 118% over the previous year. This shows that the pandemic is pushing consumers to their service. PayPal’s growth in the second quarter included nearly 1.7 million merchants who signed up for PayPal. Venmo added enough accounts to surpass 60 million users. honey Xoom attracted nearly 300% more active users than in the first quarter, and Xoom brought in 600% more NNAs than in the last quarter, CEO Dan Schulman told the company Call for profit. And PayPal expects to launch around 70 million NNAs in 2020 if the pandemic continues added about 37.4 million in 2019 – positioning to quickly expand its reach.
The growing user base of PayPal services should help to successfully develop and expand the offering as the ecosystem includes millions of other consumers and merchants.
- PayPal is working to expand its offering to control more payment funnels and play a role in more payment types. The company recently acquired Honey in an effort to control the product discovery process and added QR code payment functions to retrieve payments in the store. And it's still ongoing, considering that Schulman mentioned that more services related to bill payment, subscription and reward management, and more will be added in the coming quarters. These services are designed to help PayPal generate more sales, and by adding millions of users, PayPal will get more consumers and businesses already operating in its ecosystem to reach them.
- PayPal's growing user base could be particularly important to the success of its QR code initiative. PayPal should be more successful in getting merchants to accept its QR codes, as millions of consumers have access to them, which helps start the payment business in the store. PayPal is already set up so that its QR codes are accepted at 8,200 CVS branches by the end of this year and it could attract more key retail partners if it continues to add millions of accounts.
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