PayPal Revenues Grow While Checking Revenues Fall

Is PayPal hurting your checking revenues?  Some might look at PayPal settlements to their checking accounts and see small volume.  But the key number to see is the total debit ACH settling to your checking accounts.  That number is 20% and growing, and displacing your revenue, relationships and payment relevance.  In 2014, PayPal, which cannot offer a single service without settling to a financial institution account, will generate more revenue on your transactions than all the banks under $5 Billion in assets in aggregate.

PayPal, meanwhile, is winning now mainly in offsetting credit card transactions because credit cards are used for online purchases far more than debit cards online.  But PayPal, Amazon and Apply are rapidly moving into in-store settlement.  So you will increasingly see your checking revenues fall, as the industry has, while PayPal revenues grow.

You can fight back.  The PaySound^® Checking Plan and Companion Card strategy gives you the power to be better than PayPal and better than prepaid.