PayPal continues to gain market share as total payment volume (TPV) soared 22% year-on-year (YOY) in the fourth quarter (4Q/16). However, the transaction margin declined 340 basis points (bps) in the quarter, compared to 4Q/15, according to CardData.
During 2016, PayPal added 18 million active accounts, reflecting double digit YOY growth.
Transaction revenues for 4Q/16 increased 15.9% YOY to $2.62 billion, compared to $2.31 billion in 3Q/16 and $2.26 billion in 4Q/15.
Besides PayPal, transaction revenue includes PayPal Credit, Venmo, Braintree and Xoom products.
Total net revenues for 4Q/16 grew 16.4% YOY to $2.98 billion, compared to $2.67 billion in the prior quarter and $2.56 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 4Q/16 increased 6.3% YOY to $390 million, compared to $323 million in 3Q/16 and $367 million in 4Q/15.
Active accounts for 4Q/16 rose 10.1% YOY to 197 million, compared to 192 million in the prior quarter and 179 million in the year ago quarter. Active accounts represents customers making at least one PayPal payment in the prior 12 months.
Payments transactions for 4Q/16 soared by 22.9% YOY to 1755 million, compared to 1512 million in 3Q/16 and 1428 million in 4Q/15. Payment transactions excludes transactions via the PayPal gateway and Paydiant products.
Payments transactions per account for 4Q/16 increased 13.1% YOY to 31.1 million, compared to 30.2 million in 3Q/16 and 27.5 million in 4Q/15.
TPV for 4Q/16 grew by 21.8% YOY to $99.3 billion, compared to $87.4 billion in the prior quarter and $81.5 billion in the year ago quarter. TPV excludes volume via the PayPal gateway and Paydiant products.
The transaction expense rate for 4Q/16 increased 4 bps YOY to 0.96%, compared to 0.95% in 3Q/16 and 0.92% in 4Q/15.
The transaction loss rate for 4Q/16 increased 1 bps YOY to 0.31%, compared to 0.31% in the prior quarter and 0.30% in the year ago quarter.
The transaction margin for 4Q/16 sank . . . .