PayPal Credit said Monday that it has reached $50 billion in total payment volume.
The company said that of that tally, PayPal Credit total payment volume in the United States alone was roughly $10 billion in 2018, and logged more than $2 billion across November and December 2018.
Regionally speaking, the company said Monday that use of the credit products has been global in scope, with “significant” traction across Germany and the United Kingdom.
PayPal Credit said that the growth comes against a backdrop where the Federal Reserve has estimated that 40 percent of Americans are unable to cover a $400 emergency expense, while as many as 80 percent live paycheck to paycheck, as found by CareerBuilder. Alternative financing, the company said Monday, represents an important choice for consumers, where 78 percent state that being able to pay for items over time makes it possible to choose to buy items they need today.
PayPal has said that PayPal Credit has led to sales increases and also to customer loyalty: As measured by the firm, when middle market U.S. businesses add that option at checkout, they see a roughly 15 percent increase in incremental sales within the first three months. As many as 56 percent of PayPal Credit users in the United States, the firm has estimated, have said they are “much more likely” to shop at retailers again if those merchants offer PayPal Credit.
In one example offered up by the company on Monday, AutoAnything, an online retailer of auto products, found that customers using PayPal Credit as alternative financing spend as much as 35 percent more per transaction than through the use of other types of payment — and found, too, that roughly a third of all PayPal Credit customers are repeat shoppers on that site.