Paypal Mobile Payments
The PayPal service is currently seeing $10 million in mobile total payments volume (TPV) a day, which is up from $6 million PayPal reported in March. The company currently has eight million customers who are regularly making purchases on their mobile phones, up from a previously reported six million users.
PayPal is upping its estimates of the amount of mobile payments transactions using the technology this year; doubling the estimate to $3 billion in mobile (TPV) in 2011.
The $3 billion in mobile payments can be broken down into two categories. The first is individuals using PayPal’s mobile app to transfer money to each other. The company doesn’t make any money on this feature, except for cross-border transactions that carry a small fee.
The second category is people completing purchases on mobile online-commerce sites using PayPal. The company collects a fee for each sale through PayPal.
PayPal says that the rate at which people are using the payments technology to buy items via their mobile phones is growing rapidly and this is actually the third time the company has had to update its numbers. At years end in 2010, PayPal predicted $1.5 billion in mobile payments and in February, the company revised this to $2 billion.
“Every week I look at the numbers, I get a sense of surprise,” said Laura Chambers, PayPal’s head of mobile. She says the increased mobile transactions are due to more smartphone adoption and familiarity with PayPal.
Last year, mobile payments were up 300 percent from the previous year, so PayPal could exceed the growth rate from 2010.