In today’s world, how many of us seem to be constantly attached to our phones? I bet the vast majority of us are guilty. It’s no wonder really, we do everything on our mobile devices. We communicate, interact with social media and browse the web. One thing that many of us are increasingly doing on our phones is making purchases. It is this rise in mobile payments which has kept PayPal (NASDAQ: PYPL) thriving year on year. The flexible payments system allows users to buy anything from anyone in any place. It’s a perfect match for mobile users! We’re taking a look at just how successful PayPal has become as a result of this switch in our buying behaviour.
Take a moment to think about the last purchase you made. Now, by purchase we don’t necessarily mean something tangible. Whether it’s making a deposit at bingo sites that accept paypal as a payment such as paypal-bingo.org or buying your next gadget, there is a good chance that the purchase will take place on a mobile device. With mobile systems now offering more security than ever, it’s hardly surprising. We’d bet that you likely make far more purchases on your mobile device than you even realise.
PayPal, as profit-driven capitalist venture is quite literally banking on it. In the last year, the number of active accounts has risen by 11%. This takes the total figure to 188 million. In the last quarter alone, the platform handled a staggering 1.4 billion transactions. It’s no surprise to learn that the number of transactions per active account also rose dramatically. The figure increased by 13%, taking the average to a total of 29 transactions per active account.
The significant increase in mobile payments comes with a large number of competitors. PayPal is not the only firm to have realised the massive capacity for profit that lurks in the mobile digital payment space. Huge players such as Apple and Google are hot on their heels! Mobile payments are now an everyday occurrence. PayPal must stay innovative to remain at the forefront of this lucrative sector.
It’s not hard to see why many are chasing this sector. Of PayPal’s total payment volume, 28% can be attributed to mobile payments. During the last quarter, these payments came in at a staggering $24 billion. These figures are a sharp improvement from those recorded in previous quarters. In 2Q16, the firm experienced a 56% rise in mobile payments. Quite a haul for PayPal. Mobile payments are more frequent than ever and this firm is certainly cashing in as a result.