PayPal Up 27% in Payments, 16% in Accounts in 2014

I was at a banking conference this week where, in talking about PayPal, one banker said, “They are old news. Are they really a player or competitor to us?”

YES!  They are stealing our revenue, relationships and relevance at increasing rate by stealing our transactions and settling to our checking accounts as debit ACH.  And, they are growing today at even a faster pace.  CEO John Donahoe announced first quarter results for 2014 sharing PayPal is up 27% in payment volume, and added growth of new PayPal accounts of 16% over the previous quarter.  Meanwhile, bank service charge income is not growing in our industry, and account growth is stagnant for most.

Financial institutions need to take A Payments Approach to Checking to compete in the new environment with transaction driven services like PaySound.^®