PayPal's parent eBay has announced financial results for 2Q2014.
PayPal net total payment volume (TPV) grew 29% with Merchant Services volume up 35% and on-eBay volume up 13%. Revenue grew to $1.9 billion. PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million, up 15%. Global on-eBay penetration increased to 79.8%.
PayPal signed a deal with GE to extend its relationship offering a dual branded retail credit card and committed to purchase the loan portfolio in 2016 for an estimated $1 billion, based on the size of the portfolio at that time. This provides PayPal with flexibility to expand its credit offerings to consumers and merchants while improving its ability to manage transaction expense and reinvest back into the business to accelerate payment volume growth.
eBay reports that the PayPal 'take rate" was 3.53% in 2Q2014, down slightly from 3.55% in the prior quarter and down from the 3.79% reported a year earlier. Transaction expenses were 0.95%, down slightly from 0.99% in the prior quarter. The loss rate was 0.28%, up 1 basis point from the prior quarter.