The PayPal Effect in E-Commerce
There's no arguing the fact that PayPal has had a tremendous impact on e-commerce since its inception in 1998, but to what degree is certainly debatable.
When one thinks about the offerings, however, that have resulted in this idea of a singular payment provider to pay for goods with one login, the answer becomes clear: PayPal has changed how consumers expect to be able to pay. Let's look at some Q2 2016 statistics as reported by PayPal:
• $2.65 billion in revenue, up 19 percent year over year (YOY)
• 188 million active customer accounts, up 11 percent YOY
• 29 transactions per account
• 1.45 billion transactions, up 25 percent YOY
• 309 Braintree cards on file up 101 percent YOY
• $3.92 billion in Venmo payment volume up 141 percent YOY
What's particularly impressive about those figures is the volume of Venmo payments PayPal is processing. For the unfamiliar, Venmo is a social payments app or peer-to-peer payments app that allows friends, family, peers to quickly pay each other and charge each other, while this stream of payment activity is broadcasted within a social news feed similar to those from familiar networks like Facebook. Venmo is changing how roommates, for instance, pay for their share of rent or utilities or how home-based service providers accept fees, like a childcare provider.
In addition to "socializing" payments, PayPal's impact can also be seen in other payment platforms like digital wallets, where the idea is really the same - one login from a provider you trust to use through out the Web.
Not convinced about PayPal's prowess? Check out the infographic below: