PayPal Welcomes Venmo and BNPL Growth for Q3 Will Work with Apple Payment Products
- Oct 10, 2022
PayPal has announced that it will accept Apple's new payment products, Apple Pay and Apple Cash, as well as continue to invest in growth areas like Venmo and buy now, pay later (BNPL) products.
Venmo, PayPal's popular peer-to-peer payment app, continued to be a bright spot for the company. Venmo processed $37 billion in payments in the third quarter, up 72% from the same period last year.
PayPal also announced that it is expanding its partnership with Square to offer PayPal as a payment option on Square's e-commerce platform. The partnership will initially roll out to select sellers in the US and will be available to all US sellers by the end of the year.
"We are thrilled to partner with Square to give sellers more choice in how they get paid and provide them with access to PayPal's 260 million active customers," said Dan Schulman, president, and CEO of PayPal.
PayPal's strong third-quarter results come as the company prepares to spin off its Venmo and BNPL businesses into a new company called Honey, later this year. Honey is expected to begin trading on the Nasdaq.
The company said that its total payments volume (TPV) grew 28% year-over-year to $247 billion in the quarter. Venmo processed $24 billion in TPV, up 97% from a year ago, while PayPal's BNPL businesses saw TPV grow to $4.9 billion, up from $0.9 billion a year ago.
PayPal's strong results come as the company is set to benefit from the launch of Apple's new payment products. PayPal has announced that it will support Apple Pay, Apple's new contactless payment service, and Apple Card, the company's new credit card.
"We are very excited about the opportunity to work with Apple to provide our customers with even more ways to pay," said PayPal CEO Dan Schulman in a statement. "This is a great example of how we are teaming up with the leading platforms and companies in our space to provide our customers with more choice and flexibility in how they pay and get paid."
PayPal's strong performance in the quarter was also driven by continued growth in its core business. The company said that its total number of active accounts grew to 305 million, up 13% from a year ago.
Looking ahead, PayPal said that it expects to process $1.08 trillion in TPV in the fourth quarter, up 26% from a year ago. The company also said that it expects to generate $5.46 billion in revenue in the quarter, up 23% from a year ago.
"PayPal is well-positioned for the future with a strong balance sheet, a growing ecosystem of partners, and a clear path to continue executing on our long-term growth strategy," said Schulman.
PayPal's strong third-quarter results show that the company is continuing to invest in growth areas like Venmo and BNPL products. The company's expansion into Square's e-commerce platform will give it access to even more customers. With a strong balance sheet and clear growth strategy, PayPal is well-positioned for continued success.