PayPal continues to gain market share aa total payment volume (TPV) soared 25% year-on-year (YOY) in the third quarter (3Q/16). However, the transaction margin declined 360 basis points (bps) in the quarter, compared to 3Q/15.
Transaction revenues for 3Q/16 increased 16.7% YOY to $2.31 billion, compared to $2.32 billion in 2Q/16 and $1.98 billion in 3Q/15.
Besides PayPal, transaction revenue includes PayPal Credit, Venmo, Braintree and Xoom products.
Total net revenues for 3Q/16 grew 18.7% YOY to $2.67 billion, compared to $2.65 billion in the prior quarter and $2.25 billion in the year ago quarter. Total net revenues includes transactions revenues and value added services such as subscription fees, gateway fees, partnerships and Paydiant products.
Net income for 3Q/16 increased 7.3% YOY to $323 million, compared to $323 million in 2Q/16 and $301 million in 3Q/15.
Active accounts for 3Q/16 rose 11.0% YOY to 192 million, compared to 188.0 million in the prior quarter and 173 million in the year ago quarter. Active accounts represents customers making at least one PayPal payment in the prior 12 months.
Payments transactions for 3Q/16 soared by 24.3% YOY to 1512 million, compared to 1448 million in 2Q/16 and 1216 million in 3Q/15. Payment transactions excludes transactions via the PayPal gateway and Paydiant products.
Payments transactions per account for 3Q/16 increased 12.3% YOY to 30.2 million, compared to 29.4 million in 2Q/16 and 26.9 million in 3Q/15.
TPV for 3Q/16 grew by 25.4% YOY to $87.4 billion, compared to $86.2 billion in the prior quarter and $69.7 billion in the year ago quarter. TPV excludes volume via the PayPal gateway and Paydiant products.
The transaction expense rate for 3Q/16 increased 2 bps YOY to 0.95%, compared to 0.94% in 2Q/16 and 0.93% in 3Q/15.
The transaction loss rate for 3Q/16 increased 2 bps YOY to 0.31%, compared to 0.30% in the prior quarter and 0.29% in the year ago quarter.
The transaction margin for 3Q/16 sank by 360 bps YOY to 58.7%, compared to 59.8% in 2Q/16 and 62.3% in 3Q/15.
For additional analysis, charts and graphs on PayPal’s 3Q/16 performance access CardData.
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