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The PayPal Effect in E-Commerce

Posted on 9.25.2016

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:

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