PayPal continues to gain market share as total payment volume (TPV) and total payment transactions (PTX) soared 22% year-on-year (YOY) in the first quarter (1Q/17). However, the transaction margin continues to slide for the fifth consecutive quarter, down 370 basis points (bps) YOY and down 100 bps from 4Q/16, according to CardData.
PayPal crossed the 200 million milestone in active accounts for 1Q/17.
Transaction revenues for 1Q/17 increased 16.1% YOY to $2.60 billion, compared to $2.62 billion in 4Q/16 and $2.24 billion in 1Q/16.
Besides PayPal, transaction revenue includes PayPal Credit, Venmo, Braintree and Xoom products.
Total net revenues for 1Q/17 grew 17.3% YOY to $2.98 billion, compared to $2.98 billion in the prior quarter and $2.54 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 1Q/17 increased 5.2% YOY to $384 million, compared to $390 million in 4Q/16 and $365 million in 1Q/16.
Active accounts for 1Q/17 rose 10.3% YOY to 203 million, compared to 197 million in the prior quarter and 184 million in the year ago quarter. Active accounts represents customers making at least one PayPal payment in the prior 12 months.
Payments transactions for 1Q/17 soared by 22.5% YOY to 1732 million, compared to 1755 million in 4Q/16 and 1414 million in 1Q/16. Payment transactions excludes transactions via the PayPal gateway and Paydiant products.
Payments transactions per account for 1Q/17 increased 11.6% YOY to 31.7 million, compared to 31.1 million in 4Q/16 and 28.4 million in 1Q/16.
TPV for 1Q/17 grew by 22.4% YOY to $99.3 billion, compared to $99.3 billion in the prior quarter and $81.1 billion in the year ago quarter. TPV excludes volume via the PayPal gateway and Paydiant products.
The transaction expense rate for 1Q/17 increased 6 bps YOY to 0.99%, compared to 0.96% in 4Q/16 and 0.93% in 1Q/16.
The transaction loss rate for 1Q/17 decreased 1 bps YOY to 0.30%, compared to 0.31% in the prior quarter and 0.31% in the year ago quarter.
The transaction margin for 1Q/17 sank by 370 bps YOY to 56.7%, compared to 57.7% in 4Q/16 and 60.4% in 1Q/16.