PayPal is looking to mobile payments to continue its revenue growth

paypal venmo mobile payments
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The online transaction company was able to experience a massive spike in revenue in the last quarter of 2015.

During the last quarter of last year, PayPal was able to create an increase in its revenues by 21 percent, bringing them to $2.6 billion, much of which was generated by the adoption of mobile payments in a number of different forms.

Revenues are also believed to have been boosted at PayPal through its acquisition of Xoom, the remittance firm.

The acquisition closed during the fourth quarter and PayPal has said that it added a full percentage point to the growth rate it was able to achieve in its revenues. Moreover, it also brought with it about 1.6 million active customer accounts from Xoom into the American company’s own platform. Xoom makes it possible for users to send funds internationally by way of a mobile payments app. This allows them to be able to skip various types of more traditional transfers, such as Moneygram. Throughout 2016, it is predicted that the acquisition of the firm will have brought an additional $200 million to PayPal’s revenues.

As PayPal has adopted mobile payments, the company’s volume of transactions has also drastically risen.

paypal mobile paymentsIn fact, there has been a 29 percent year over year increase, bringing the total to a massive $82 billion. Now that the company also works as a mobile wallet, it has become possible for a tremendous number of additional doors to open. According to the company, it now represents about a quarter of its total payment volume. At the same time in 2015, that figure had been slightly lower at 21 percent.

The considerable growth of Venmo has also helped to reveal the increasing dedication to activity as a mobile wallet by PayPal. Venmo makes it possible for peer to peer (P2P) payments to be sent by way of its application. This service has been particularly popular among American users in the millennial generation.

In the last quarter of last year, the mobile payments volume sent by way of the Venmo app increased by a massive 174 percent, bringing the total to $2.5 billion.

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