With online spending increasing throughout the Covid-19 lockdown and more people taking to eCommerce to buy products and services, payment gateways have seen a boom in activity.
PayPal are a prominent figure in the world of online payments and merchants on their platform have seen exponential growth over the course of 2020, owing to well optimised customer journeys and trust in payment solutions.
Here's 10 facts about PayPal's growth and what this tells us about consumer spending and eCommerce trends:
1. A boom under lockdown
PayPal saw consumer transactions jump 22% annually in April, 2020. Over the period of lockdown, the global payment operator earned $68 billion in total payment volume which equates to 40% of its Q2 2019 total.
2. May 1 marks largest day in company history
May 1 marked the largest day in PayPal’s history, according to PayPal earnings call. Customer use of PayPal had been steadily increasing throughout Q1 before taking a huge upturn in late March and April when it saw “unprecedented demand,” according to PayPal CEO Dan Schulman. This culminated in the firm reaching a new high with May 1 marking the largest day in PayPal’s history, according to PayPal earnings call.
3. Average number of annual transactions per PayPal Account
As of the beginning of 2020, the average number of transactions per active PayPal account stood at 40.6 transactions. This may be expected to further increase following the culmination of 2020 given the volume of online transactions.
4. More and more retailers using PayPal's checkout and marketing solutions powered by Cloud.IQ
PayPal reported that throughout Q2 of 2020, the company added 21.3 million accounts during the quarter, up 137% from a year earlier. This means that there are more and more retailers using PayPal's checkout and also the conversion rate optimisation marketing solutions that are powered by Cloud.IQ.
5. Growth predicted for the entirety of 2020
The payment gateway company said it expects the trends to continue and that for the full year it now expects earnings per share to increase about 25% on 22% revenue growth highlighting the importance of digital payments.
6. More records broken
PayPal added more new users in Q2 of 2020 than in any previous quarter in its history because more consumers and businesses are taking an interest in its offerings due to the pandemic.
7. Digital payments tipping point
PayPal CEO talked about there being a digital payments tipping point saying, “The world has moved to a digital-first economy and I don’t think there is any going back.” He said that the Covid-19 crisis has meant an acceleration in eCommerce penetration that could have otherwise taken three to five years to accomplish.
8. Cloud.IQ are PayPal’s official CRO partner
The digital payment juggernaut recognises Cloud.IQ as their official conversion rate optimisation partner and allows the business to use PayPal branded overlays which significantly work to increase consumer trust, a valuable asset in eCommerce. An Actual Insights survey found that 61% of shoppers didn’t buy because a trust logo wasn’t shown, and over 75% said they didn’t buy because they didn’t recognize the logo used. This is the power of the partnership.
To learn more about Cloud.IQ’s partnership with PayPal or how the partnership has worked to help optimise 1000’s of businesses previously, please click below for a free trial of the platform.