PayPal’s 2017 third quarter result reports a 21 percent revenue increase to $3.239 billion.
Currently, the small business favorite for online payments (NASDAQ:PYPL) has 218 million active users in 200 markets around the world, delivering financial transactions online, on mobile, in an app, or in person. This flexibility is one of the reasons its revenue is growing at double-digit rates.
PayPal 2017 Third Quarter Results
The 2017 third quarter revealed PayPal had 1.9 billion payment transactions, which was a 26 percent increase. The growth was driven by 8.2 million new active customer accounts, up 88 percent.
For many freelancers and small businesses using PayPal as their payment platform, the growth represents more opportunities. According to the report, 17 million merchant accounts use the platform to accept payments from all corners of the world. This has made it possible for individuals and small businesses to make their products and services available globally.
PayPal is adding more services and partnering with global brands to make it accessible to everyone. Dan Schulman, President and CEO of PayPal, said in the release, “Putting our customers first in everything we do, enhancing our suite of products and services, and partnering with some of the world’s most popular brands are delivering tangible results.”
The addition of Braintree, Venmo, and Xoom has given PayPal access to a younger demographic that rely on these apps to carry out personal financial transactions without fees. Being able to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in PayPal accounts in 25 currencies means a small business can operate no matter where it is.
Some of the other financial highlights include, an operating cash flow of $1.006 billion, free cash flow of $841 million, up 36 percent; 32.8 payment transactions per active account; $114 billion in total payment volume (TPV), up 30 percent; and mobile payment volume increased 54 percent to $40 billion over the same period last year.
Takeaway for Small Businesses
Since PayPal split from eBay in 2015, the stock price has doubled and the company is doing all the right things to make its platform an invaluable part of today’s digital economy. The CEO said, “As the world rapidly accelerates to digital payments, we have a tremendous opportunity in front of us.”
As a small business, PayPal has to be one of the payment solutions you make available to your customers. Not doing so means potentially losing many of the 218 million active customers that use PayPal.
PayPal Photo via Shutterstock