Tag: paypal

PayPal sees significant growth in mobile payments over the last 10 years

The mobile space is driving the evolution of commerce as a whole

It has been 10 years since PayPal launched its first mobile payments service. To celebrate the anniversary of the service, the company has released information to show its exponential growth over its long history. This information is visualized in a chart that was released by PayPal earlier this week. According to PayPal CEO Dan Schulman, the mass adoption of mobile commerce has created a significant shift in the way people spend money. This has begun to change the nature of commerce with consumers relying more heavily on the digital space.

$66 billion in mobile transactions were processed by PayPal in 2015

According to PayPal, one-third of the 4.9 billion payments processed by the company last year were made through mobile devices. This accounts for some $66 billion in mobile transactions. The company believes that the growing prominence of mobile payments services will lead to a change in the commerce space over the next decade. This change may accelerate as more businesses begin supporting mobile transactions and shoppers relying on their smartphones and tablets.

Global mobile payments could reach $4 trillion by 2020

PayPal Mobile PaymentsIn the United States, mobile commerce exceeded $100 billion in transactions in 2014. These transactions have continued to grow since, with more consumers becoming comfortable with the prospect of using mobile devices to make purchases. By 2020, mobile transactions could reach more than $4 trillion globally, according to IDC, a market research and analysis firm. With new payment services becoming more secure, more consumers are likely to participate in the mobile commerce space, giving PayPal and other companies new opportunities to expand their mobile initiatives.

Improved security makes consumers more comfortable with mobile commerce

Consumer adoption of mobile commerce has been heavily influenced by the security and convenience of payment services. Many had consider mobile transactions to be risky as they believed their financial information would be exposed to theft and exploitation. Indeed, some services have been impacted by major data breaches in the past, but these events have served to strengthen security in recent years, making mobile payments more attractive to consumers.

PayPal is looking to grow off the swell of the mobile commerce market

PayPal is looking to monetize its Venmo division

PayPal is attempting to successfully monetize Venmo after having acquired the mobile payments firm in 2013, hoping to take advantage of the growing popularity of mobile commerce. Venmo has gained popularity among consumers as it allows them to send and receive payments amongst one another. The service blends the mobile commerce world with social elements, which has given it a competitive edge over other services that have sought to establish a foothold among mobile consumers.

Venmo processed $7.5 billion in mobile payments in 2015

In 2015, Venmo processed some $7.5 billion in mobile transactions, a 213% increase over what it had processed in 2014. This is only a fraction of the $282 billion in payments that PayPal processed last year, but Venmo is seeing aggressive growth. PayPal wants to monetize the service by allowing them to spend money through Venmo rather than only being allowed to transfer money to one another. Over the coming months, this aspect of the service is expected to mature and become well liked among consumers interested in mobile commerce.

PayPal is looking to expand into European markets to support mobile transactions

Mobile Commerce - PayPal to growApart from Venmo, PayPal is looking to expand on various fronts in the mobile payments field. At this year’s Mobile World Congress, PayPal announced a new partnership with European telecommunications company Vodafone. Through this partnership, millions of PayPal’s European customers were able to use their Android devices to make purchases using the Vodafone Wallet service. This service is expected to break into several European markets in the coming months.

PayPal is establishing a stronger foothold within China

PayPal has also extended its partnership with Alibaba, the largest e-commerce group in China. Together, the two companies have launched a new pilot program, through which retailers can accept PayPal payments. This program is tailored for merchants that want to sell products through Alibaba Wholesale, providing them with a way to effectively connect with mobile shoppers. This may be good news for PayPal, as China is one of the world’s fastest growing mobile commerce markets.