PayPal claims the top spot in BNPL 🤯; Alipay tests golden goose in Hong Kong 🇭🇰; Pyypl is for the people 🧑🤝🧑
FinTech is Eating the World, 10 November
Hey Everyone,
Happy Thursday! Today’s issue is super interesting as we’re going to look at PayPal which claims the top spot in BNPL (their key growth opportunities & one huge risk + 2 bonus reads), Alipay that tests golden goose in Hong Kong (you should steal this ASAP!), and Pyypl, which is for the people (a company worth keeping an eye on). Let’s jump straight into the interesting stuff:
PayPal claims the top spot in BNPL 🤯
Earnings call ☎️ Payments behemoth PayPal PYPL 0.00%↑ recently posted its Q3 results. It’s clear that PayPal’s users are still engaged, but spending is clearly slowing. Let’s take a look.
More on this 👉 Here are the most important numbers to know:
Total payment volume (TPV) grew 14% year over year (YoY) to hit $337B. Though TPV growth was roughly flat compared with 13% in Q2 but slowed from the 24% increase reported in the same period last year.
Net revenues jumped 12% YoY to $6.85B.
Paypal reported 432M active accounts, representing a 4% increase year-on-year and including 35M active merchant accounts.
Engagement, or transactions per active account, grew by a record 13% to 50.1, as detailed in the company’s investor materials. The PayPal core daily active accounts are about 40% higher relative to pre-pandemic periods, as measured in the third quarter of 2019.
PayPal processed nearly $5B in Q3 BNPL volume, representing a 157% YoY surge. More than 25M consumers use its BNPL product, and more than 280k merchants display PayPal’s BNPL offering on their product pages.
As a result of this robust growth, we believe we have become the largest buy now pay later provider in the world,- CEO Dan Schulman.
Venmo TPV grew 6% YoY in Q3 to hit $63.6B, compared with 36% growth in Q321. Venmo is now available as a payment option for select Amazon customers.
What this means? 🤔 Well, it’s clear that even giants like PayPal, are not immune to macro headwinds and inflation’s dampening effect on consumer spending. Yet, the company has some interesting growth initiatives that should help weather the storm.
Here’s more on this + the takeaway (& 2 bonus reads):