As demonstrated through the financial results we announced yesterday, 2017 was a landmark year for PayPal. We had consistently strong and – in many cases – record breaking results. In particular, the continued rise of mobile payments shows no signs of slowing. We processed $155 billion in mobile payments in 2017, a 55% increase over 2016.
The move to mobile is one of the most important trends in global commerce. Today, consumers are spending more time on mobile and that's presented tremendous new opportunities for PayPal. As one of the largest mobile payment platforms, we continue to innovate to make shopping and managing money on mobile phones easier than ever before through innovations like Venmo and
One Touch, which is used by more than 80 million consumers globally, doubled from one year ago.
Expanding Venmo Payment Capabilities
Venmo has long been a popular way for millennials to conduct P2P payments. The fact that Venmo processed nearly$35 billion in payments in 2017 – up 95% over 2016 – is proof of this. In 2017, we significantly expanded Venmo’s capabilities beyond P2P payments to allow consumers to
shop at more than two million online retailers on their phone. We’re pleased with the engagement we’ve seen at this stage, which is tracking above the P2P adoption Venmo experienced at a similar point it its early history. Target, Macy’s and Fandango are among the most frequented retailers by people using Venmo as a way to pay.
Person-to-Person Payments Fueling Engagement and New Accounts
Beyond PayPal making it easier to shop from your mobile device, it is easier than ever to pay back family or friends using your phone*. In the fourth quarter of 2017, PayPal added a record high 8.7 million net new customers with P2P payments representing an increasingly meaningful source of new consumer accounts for our platform. From October through December, people used PayPal, Venmo and Xoom to send and receive more than $27 billion to their friends and family in more than 200 markets around the world - up 50% over the fourth quarter of 2016. To put that into context, more than $12 million is sent via PayPal platforms per hour.
In addition, the growth in our PayPal, Venmo and Xoom P2P services increases our ubiquity, strengthens our value proposition and helps reduce churn among our consumers. Importantly, when people use PayPal, Venmo and Xoom to send and receive money, they are also more likely to shop using our platform. These businesses are important to our long-term success and we remain committed to both investing in and monetizing these high-growth opportunities.
Instant Funds Transfer
We’re also making it easier for customers to access their money. In 2017, we added the ability for PayPal and Venmo customers in the U.S. to instantly transfer money to their bank accounts via eligible debit cards linked to their accounts**. We believe this innovation can help increase engagement and consideration of PayPal and Venmo.
2018 and Beyond
Given our experience this past year, we believe our future opportunities are expansive and compelling. We are riding powerful and accelerating tailwinds created by the digitization of cash and the mass adoption of mobile devices. We are actively positioning ourselves to take full advantage of these trends, and strategically moving our business into areas where we believe these transformations are creating the strongest opportunities.
*To send and receive money using either PayPal or Venmo Send Money service online or via a mobile device, the sender and recipient must have a valid Venmo or PayPal account.
**$0.25 per transfer. Transfers typically occur in minutes.