PayPal is making bold moves to turn itself from just a simple payment platform into a proper commerce powerhouse. Innovative offerings through Fastlane and PayPal Everywhere are shaping the consumers’ as well as the merchants’ experience. The end product? A growth story impossible to ignore.
PayPal Holdings, Inc. operates a technology platform that offers digital payments to merchants and consumers. The company is unique in its industry in having a gigantic two-sided network, which connects millions of users to make effortless online and in-person transactions by connecting their bank accounts and credit cards to the PayPal account.
PayPal offers various types of payment solutions, including PayPal, Venmo, Braintree, Xoom, and PayPal Credit. The revenues come primarily from fees payable by merchants for their utilization of its services in facilitating payments, as well as for added value services such as working capital loans and fraud protection.
PayPal caters to customers ranging from individual consumers and small businesses to large-sized enterprises across different industries. The end market includes online and brick-and-mortar retailers seeking a secure and efficient way to process payments, as well as consumers who simply want a convenient way to make purchases.
PayPal has been the pacesetter in online payments for a long time. In the past few years, the company seemed to have lost its mojo and lagged competitors. But it is now well on its way to set the pace again. In Q3FY2024, it achieved 9% growth in total payment volume to $423 billion and 6% revenue growth to $7.8 billion. The introduction of new mobile checkout tools, vaulted and one-time checkouts, also increased conversion rates by up to 400 basis points.
In addition, the use of Buy Now, Pay Later (BNPL) grew 15-20%. These moves clearly reflect the changing approach that the company is taking in order to remain competitive in a market that is increasingly becoming dependent on the younger generation’s habits and preferences.
Paypal’s new Fastlane and Paypal Everywhere will be game-changers, as Fastlane already helps reduce guest checkouts and has hit over 1,000 merchants. PayPal Everywhere, launched in September, is boosting omnichannel spending and bringing on more than one million new debit card users. With such expansions happening globally in places like China and Hong Kong, it really shows that PayPal is going all out on growth. These are big ideas that should yield real results.
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Disclosure: None. This article was originally published at Insider Monkey.