PayPal and its wallets operate in a very different segment of the payments market. Ecommerce has been surging through 2020 and PayPal is benefiting, amassing an incredible 361 million active accounts, up 22% year on year and processing a total of $247bn in the quarter.
In the cross-border segment, growth continued to be strong, reaching a record value of cross-border volume at $40bn in the quarter. Asia to the US and intra Europe drove the strong Q3, with strength in the fashion, cosmetics, gaming and home goods categories.
The decline in share of total payments is more a reflection of the continued growth in the performance of Venmo, PayPal’s US domestic payments app. As a side note, Venmo’s US competitor Zelle performed strongly in Q3, processing $84bn of payments compared to Venmo’s $44bn.