Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

PayPal is focusing on moving into China and launching Venmo's first credit card

PayPal is focusing on moving into China and launching Venmo's first credit card

This story was delivered to Business Insider Intelligence Payments & Commerce subscribers earlier this morning.

The company's total payments volume (TPV) reached $178.7 billion, growing 27% year-over-year (YoY) on a constant currency basis, per its earnings release.

This marks the seventh consecutive quarter in which TPV grew between 25% and 27% on an annual basis. Meanwhile, its number of active accounts jumped 16% YoY to total 295 million, which is the eighth straight quarter where the metric's annual growth came in between 15% and 17% YoY, highlighting PayPal's consistent strong growth.

The company is now embarking on two key initiatives - its move into China via its acquisition of GoPay and its forthcoming Venmo credit card - that could cause its performance to surge in the future.

Becoming the first foreign online payment platform in China should enable it to boost its TPV and account number, both in China and abroad. Taking a 70% stake in GoPay, which is licensed for online and mobile transactions, gives PayPal the ability to reach China's domestic and international payments industries in a way other foreign companies can't. It may have trouble breaking into the domestic industry because of established players like UnionPay, WeChat Pay, and Alipay, but cross-border payments and e-commerce may be a valuable opportunity.

For example, PayPal could enable Chinese consumers to make purchases from its international merchants and help Chinese merchants sell abroad, CEO Dan Schulman said on the company's earnings call. Such efforts might bring more merchants, consumers, and volume into PayPal's ecosystem, propelling its performance to new heights. The cross-border opportunity for PayPal may be massive considering China's cross-border e-commerce imports were reportedly worth 1.9 trillion yuan ($269 billion) alone in 2018, which would enable PayPal to build on the $31 billion in cross-border trade TPV it posted in Q3 2019.

The introduction of Venmo's credit card in 2020 could help PayPal better monetize its peer-to-peer (P2P) payments platform. Venmo's TPV continues to rise - it surpassed $27 billion in Q3 2019, growing 64% YoY - and 35% of its users have used one of its monetized actions. However, it still needs to improve since it may not be profitable yet.

The launch of Venmo's first consumer credit card, which will be issued by Synchrony, could help this process by giving Venmo new revenue opportunities that would make it more valuable to PayPal's overall performance. It's not guaranteed to succeed, though, since the card will need to attract consumers, who could be using any number of competing cards, so the formulation of its rewards program and recruitment strategy will be key in determining how the initiative fairs for PayPal.


Want to read more stories like this one? Here's how to get access:

1.Sign up for Payments & Commerce Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. 

2.Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. 

3.Explore related topics in more depth.

4.Current subscribers can log in to read the briefing here.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×