PayPal's Plans to Monetize Venmo Are on Schedule
PayPal Holdings Inc (NASDAQ: PYPL) investors had plenty of reasons to cheer when the company recently reported its second quarter earnings.
Revenue for the payment platform increased 18% year over year to $3.14 billion, and non-GAAP EPS increased 27% year over year to $0.46. More importantly, the quarter proved that the company's strategy to make partnerships that offer its account holders more choices are paying off. PayPal increased its active accounts to 210 million, for 12% growth year over year, and these new active accounts averaged 32.3 transactions over the past twelve months, good for a 10% increase year over year.
Even more amazing was the growth of Venmo, the social payment platform that's proving so popular with millennials. The platform processed $8 billion in total payment volume, for an eye-popping 103% year over year increase. During the quarter, PayPal announced Venmo users would soon be able to transfer money from their accounts to eligible debit cards instantly as part of the agreements the company made last year with Mastercard and Visa. While the continued success and growing popularity of Venmo is welcome news, what investors really want to know, however, is when the platform will be able to meaningfully contribute to the company's top and bottom lines. And, on that front, the company had some good news.
Source: Fool.com