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PayPal Quarterly Payments Jump 85% in 3 Years to Hit 3.2Bn in March 2020

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Smart devices and a booming global eCommerce market have driven the rapid adoption of digital payments worldwide.

PayPal Quarterly Payments Jump 85% in 3 Years to Hit 3.2Bn in March 2020

Digital payments have changed the payment industry traditionally dominated by cash and credit cards, offering consumers lower fees and faster transfers at the touch of a button.

As one of the first and biggest players in the digital payments landscape, PayPal has played a huge part in building a cashless society, with rapid growth in the number of users and transactions.

The quarterly number of PayPal payments jumped 85% over the last three years, reaching 3.2 billion in the first quarter of 2020, according to data gathered by LearnBonds.

Transactions Rocket 25% Year-on-Year

One of the world’s largest online marketplaces, eBay purchased PayPal back in 2002 and spun it off in 2015.

However, the two firms had retained a close relationship, with PayPal continuing to process payments for eBay. But this is set to change when eBay’s said in January it would replace PayPal as its main payment processing provider with Dutch rival Adyen.

However, thousands of retailers such as Home Depot and BestBuy and digital content sellers, such as Valve or Humble Bundle have picked up PayPal for in-store payments or digital wallet top-ups. Recently, even brick-and-mortar retailers and shops have begun accepting PayPal as a mobile payment method.

Today, the PayPal platform provides digital commerce and peer-to-peer money transfers in more than 200 markets worldwide. Its huge global reach has been driving steady growth in the number of transactions over the years.

In the first quarter of 2017, PayPal reached 1.7 billion transactions worldwide, revealed Statista data. By the beginning of the next year, this figure jumped 30% and reached 2.2 billion. Statistics show the quarterly number of PayPal payments continued rising and hit 2.8 billion in the first quarter of 2019.

By the end of the year, PayPal reached a total of 12.4 billion transactions, a 25% increase year-on-year. The group’s full year 2019 results also revealed the company saw $712bn in total payment volume, a 23% jump compared to 2018 figures, allowing it to make over $17.7bn in revenues last year

Dan Schulman, president and chief executive of PayPal, said: “PayPal delivered strong results in 2019, achieving many records including revenue, net income and operating margin performance. We added 37.3 million net new active accounts, bringing total active accounts to 305 million, up 14% year over year. We strengthened our value proposition for consumers and merchants, expanded our international scope and scale, and announced transformative strategic acquisitions, investments and commercial partnerships.”

Number of PayPal Users Hits 325 Million

Statista 2019 FinTech report revealed that PayPal dominates the German, UK, and U.S. markets, with 90 to 96% of those asked using the service. Amazon Pay follows with 16 to 32% of respondents who use it for online payments.

Ten years ago, PayPal had 84.3 million users all around the world. Over the next five years, this number has almost doubled to 165.2 million. The increasing trend continued in the following years, with the number of people using PayPal for online payments growing to 205 million in the first quarter of 2017.

Statistics show by the beginning of 2019, there were over 277 million PayPal users in the world, and the number has continued to grow. In 2019, the online payments provider gained 37.3 million new active accounts, totaling 305 million accounts, or 14% growth year-on-year.

In the first quarter of 2020, there were 325 million active PayPal accounts globally, representing a 17% year-on-year growth.


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E-Financial

Nova Merchant Bank Floats N10Bn Bond

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Nova Merchant Bank, a leading merchant bank in Nigeria has announced that its ongoing N10 billion bond issuance is aimed at putting the business on firm footing to achieve its short-term and long-term goals.

Nova Merchant Bank Floats N10Bn Bond

The technology-driven financial institution is seeking to raise up to N10 billion 7-year Fixed Rate Subordinated Unsecured Bonds under its N50 billion debt issuance programme.

The bond has a price range of from 12 per cent to 12.50 per cent and the offer, which opened on June 30, will close on July 8, 2020

Anya Duroha, managing director/CEO, Nova Merchant Bank, who disclosed this, explained that the bank is raising the N10bn in Subordinated Unsecured Bonds under its N50 billion debt issuance programme.

Anya Duroha, managing director/CEO, Nova Merchant Bank

Duroha who pledged the bank’s commitment to creating superior value in the market and keeping customers at the centre of its business, noted that the Bond will be invested in long-term risk assets as part of its medium-term growth strategy and advised interested investors to obtain more details of the bond from the Bank’s website www.novambl.com.

Nova Merchant Bank Limited is a licensed merchant bank in Nigeria rated BBB by Agusto & Co. and A+ by Datapro and the bond which is issued under a SEC-approved N50billion Debt Issuance Programme is callable in five years by the bank.

Speaking to shareholders at a meeting recently, Mr. Phillips Oduoza, the bank’s chairman, noted that the bank reported a significant improvement in all the key financial indices compared to the previous year’s achievement, and attributed the growth to the successful execution of the 2019 strategic plan in line with the key pillars to position the bank as a market leader by 2025.

Mr. Phillips Oduoza, chairman, Nova Merchant Bank

He said that the Bank will continue to focus on digital banking, provision of long-term funding, wholesale and investment banking while maintaining a lean operating philosophy.


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Path Solutions Tops IBS Islamic Sales League Table 2020

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Path Solutions, a global banking software provider, was announced by IBS Intelligence as the leader in the Islamic financial services sector in IBS Islamic Sales League Table (SLT) 2020.

For the eighth year in a row, Path Solutions was recognized the undisputed leader in Islamic Banking with more new Islamic deals signed in 2019 than any of its industry peers. The company is part of the iconic IBSI Leadership Club 2020 for back office systems, topping the Islamic Banking category since 2017.

Separately, Path Solutions was recognized as the World’s 4th Universal Banking System Provider for the fifth consecutive year in IBS Global SLT. The dual recognition demonstrates Path Solutions’ cementing leadership position across the breadth of the financial services space.

In IBS SLT 2020, Path Solutions featured in four other categories; the Compliance, Digital Banking & Channels, Risk Management, and the Lending category, making it one of the preferred software vendors in these segments, expanding its solution footprint globally.

The annual IBS SLT is the global barometer for sales performance of Universal Banking, Islamic Banking, Wholesale Banking, Retail Banking, Private Banking, Lending, Digital Banking, CRM, Payments, Compliance & Risk Management, Investment & Fund Management-related technology market.

Mohammed Kateeb, Group Chairman & CEO of Path Solutions, commented, “These recognitions attest to our continued vigorous commitment and rigorous execution, seeing the pace and scale in the adoption of our flagship iMAL platform. It makes us incredibly proud to be serving our valued clients with a comprehensive open banking platform, innovative and state-of-the-art digital solutions complemented by deep intelligence built into all major business segments”.

Kateeb added, “Being recognized as the leader in Islamic SLT for the eighth year running demonstrates our company’s overall ability to meet the continuously emerging complex client requirements, emphasizing the breadth and depth of our suite of solutions, as well as our ability to accelerate time to market for products and services.

As our clients look at rethinking the playbook, we will continue to make industry leading R&D in intelligence and digital, to help them embrace the opportunities created by Industry 4.0 technologies and be more efficient and competitive”.

IBS ISLT spokesperson stated, “Islamic financing in recent years has seen tremendous growth spurred by more awareness, strong investments, digitalization and increasing financial inclusion in predominantly Islamic countries in the Middle East and Africa.

This year’s ISLT saw close competition between top players, where Path Solutions emerged as the winner for its iMAL platform. Many congratulations again for being at the leadership position in the Islamic Banking category”.


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FCMB Empowers SMEs with Training on Digital Technology, Logistics

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Business owners in Nigeria have been advised to leverage on the opportunities provided by digital technology to boost productivity, service delivery and overall performance of their organisations despite the challenges posed by the Covid-19.

This was the submission of guest speakers at the second edition of the First City Monument Bank (FCMB) organised virtual capacity building programme for SMEs with the theme, “Leveraging Digital Technology & Logistics to Grow Your Business,” held recently.

The initiative was organised under the auspices of the bank’s free comprehensive capacity building programme, tagged, “Business Empowerment and Sustainability Training (BEST)’’ Masterclass and was put together by FCMB’sTraining Academy and SME Advisory Unit.

A statement explained that the online seminar, which recorded over 2,016 registered participants, focused on various topics, ranging from innovation, digital technology solutions, business model opportunities and adapting to the new normal.

The outbreak of the novel coronavirus pandemic has continued to pose alarming economic, business and commercial impact globally. It has adversely limited the ability of businesses to meet high demand of goods and services due to the restrictions and other safety measures put in place by Governments and health authorities to contain the pandemic.

However, experts are of the opinion that these challenges can be overcome with the adoption of effective digital technology solutions and logistics.

In his presentation, an Associate Partner with Mckinsey & Company, Mr. Chika Ekeji, said, though, Covid-19 is disrupting the structure of businesses across Africa, the continent can respond to disruptions with four actions.

These, he listed to include a shift in business model, sustaining business and restoring operation, shaping a whole new business and restructuring company or industry, depending on the extent of business model disruption and extent of negative demand disruption.

According to him, “some of the ways business owners can respond to this impact are, respond, return and reimagine. Across all horizon, a number of technology solutions can be leveraged to adjust SME operations to the new normal with the goal of cutting cost, sustaining revenues, reaching (new) customers, delivering on commitments, managing supply chains and innovating”.

Another guest speaker, an Associate Director of Strategy and Economics at KPMG Nigeria, Mr. Olusegun Zacchaeus, said businesses, particularly SMEs, should realign their strategies to embrace the new normal caused by the coronavirus pandemic.

He noted that this new reality presents a new set of conditions for success for SMEs and as such they must proactively adopt new strategies for survival, considering the challenging economic outlook.

He stressed that, “businesses will have to navigate the different phases of crisis maturity by responding to immediate challenges, managing through uncertainty, resetting and identifying opportunities and adapting to New Reality. The strategies for the New Reality include, building financial sustainability, manage your market to sustain revenue flows, diversify and explore new opportunities and re-evaluate your operating model plan with scenarios in mind”.

On his part, the Chairman of FASMICRO Group, Prof. Ndubuisi Ekekwe, who was a special guest said, there was need for everyone in business to evaluate why they are in business which brings the market friction between demand and supply to equilibrium.

“To stay relevant in business, business owners are required to solve market frictions and those with the acquired skills have the capabilities to release products that can overcome the frictions. If you have a great product – great things will happen,” he added.

Ekekwe added that, “The ability of business owners to serve customers and deliver goods to them can be achieved through partnership with logistics companies who leverage on technology to reach customers.

By following this model in the right way and choosing appropriate tech solutions, business owners can gain visibility, transparency and save cost, which will in turn help them stay within the marginal cost of production.”

Commenting on the BEST Masterclass, Mrs. Bukola Smith, Executive Director, Business Development of FCMB, said the bank recognises the increasing role and impact of SMEs and particularly understand the impact COVID-19 might have on their operations.

According to her, “the BEST initiative has been redesigned to meet the changing dynamics of the environment with the addition of a Masterclass. This is one of the innovative ways we empower and lay a solid foundation for the success of our SME customers.

“We believe that this initiative, which is the second edition since the outbreak of the COVID-19 pandemic, will go a long way to impact positively on business owners. We will continue to go the extra mile to create opportunities that would enable our customers succeed despite the challenges.”


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