Paypal Holdings Inc (NASDAQ:PYPL) is reaping the benefits of increased smartphone sales as people resort to using mobile devices to complete transactions. The number of people using their mobile devices to pay for goods and services according to the payment giant is on the rise having accounted for a third of all items bought during the Thanksgiving and Black Friday shopping bonanzas.
Growing Mobile Transactions
During Cyber Monday, the company says it registered a 50% increase in the value of transactions handled through mobile devices on the network. Payment volume is also on the rise having reached a record $10,781 a second during thanksgiving.
PayPal also notes that most people used their PayPal wallet to spend money on Fashion purchases with Mobile devices also attracting huge sales. PayPal figures also shows that the network currently supports 192 million active users and 15 million active merchants.
People are also using their PayPal wallets to make big payments, one shopper having paid $75,849 during Black Friday for an unidentified item. During Thanksgiving, one shopper is reported to have spent $53,500 on an item using his PayPal wallet. E-commerce spending reaching record levels of $3 billion all but affirms that PayPal should register a stellar year on earnings given that it is one of the intermediaries normally used to facilitate transactions.
Year-Over-Year Growth
PayPal is projecting an even more stellar year come 2017 with the amount of transactions handled on Cyber Monday expected to grow by 40%. The fact that people are now spreading their shopping spree across multiple days instead of just one day, further affirms growth in the sector.
PayPal has ramped up investments in supporting mobile transactions, as it looks to increase the number of transactions it handles at the back of the ongoing growth in e-commerce. Integration of Siri in the company’s mobile app for iOS is the latest addition that lets people carry out transactions by simply issuing commands.
Paypal Holdings Inc (NASDAQ:PYPL) was unchanged in Tuesday trading session having shed 0.18% in market share to close the day at $39.89 a share.