The holiday season seems to come earlier and earlier each year, and with each new year comes new consumer expectations about how, when and where they want to pay.

We’re still two months away from Cyber Monday and Black Friday, but the start of the holiday shopping season is just two weeks away. PayPal data indicates that holiday shopping will kick off on September 30. On Cyber Monday, at peak, they expect they will see more than $25,000 in total payment volume per second. Mobile will continue to grow its share of ecommerce this holiday season and their prior years’ data indicates that the largest single mobile purchase will be more than $64,000.

PayPal bet big on mobile ten years ago and continues to be the leader in mobile payments. Their mobile growth is only accelerating. Since they launched their first mobile payments product in 2006, PayPal has processed nearly $200 billion in mobile payments. But they expect to process $100 billion in mobile volume -- half of what they processed over the past decade -- within the next year alone.

One Touch

Their growth in mobile volume is in large part due to their seamless mobile checkout experiences, like One Touch, which is the fastest adopted product in PayPal’s history. By the end of the year, they expect that more than five million merchants will have One Touch automatically enabled across the globe. They’re also anticipating more than 36 million consumers will be opted in to One Touch by the end of the year.


Their partner-based approach to drive customer choice in payments continues to evolve with their recent announcements with Visa, Mastercard, Vodafone and many others. Just earlier this week, they saw a number of additional partners make announcements about leveraging the PayPal platform to add value to their customers. Facebook announced PayPal and Braintree as partners for the next generation of native payments in Messenger and the launch of iOS 10 by Apple opened up Venmo payments in iMessage as well as voice-activated Venmo payments with Siri. Coming soon, you will also be able to send and request money with PayPal via Siri. All of these partnerships are about enabling more choice and optionality for their customers.

On the heels of their announcements with Visa and Mastercard, they announced they have fixed one of their customers’ top pain points. Beginning this month, PayPal customers in the US will be able to set their preferred funding type in their PayPal Wallet to sources other than their PayPal balance, giving customers the option to pay by default with their favorite credit card, debit card or bank account. PayPal will begin rolling this out globally in Q1.

New Commerce Contexts

While mobile will continue to drive commerce this holiday season, consumers are now beginning to expect in-context buying experiences, and PayPal is uniquely positioned to deliver this. With PayPal Commerce, they are enabling these in-context buying experiences -- whether in an e-mail, a blog, or social media -- allowing purchases to happen at the moment of intent. Additionally, you may remember when they partnered with Facebook Messenger to enable the ordering of Ubers and Lyfts from within the Messenger app -- that is a real-life example of contextual commerce that they are powering. Already Ticketmaster, Eventbrite and others have been added to Facebook commerce capabilities.

Paypal is announcing the commerce infrastructure tools that power these experiences. With these new tools, they’re extending the power of their vault beyond securing and tokenizing data and now enabling the ability to securely share payment information both on and off their platform. With these new tools, Braintree merchants can securely share payment data with other Braintree merchants as well as other PCI level 1 parties such as fraud platforms, card linked offer platforms, and more. This opens up the possibilities for entirely new commerce experiences that they will start to see this holiday season.

Creating the Operating System for Digital Commerce

While part of their partnership strategy is to bring their consumer payment options into new payment experiences, the other part of their strategy is to enable all relevant payment options for their customers through their own platforms. Their Braintree platform has long supported Apple Pay for mobile, Android Pay, PayPal, Venmo, Coinbase and cards. Today, they’re announcing that the Braintree SDK will soon support Apple Pay on theweb, China UnionPay and PayPal Credit, as well as Visa Checkout and Masterpass, which they recently announced.

Re-architected Platform and Product Innovation

They’ve been able to accomplish a lot of this so quickly, in large part due to their two-sided network and re-architected platform. They can now push code many times a day -- much faster than the industry average -- and at a system wide scale that drives over $10,000 in TPV per second, giving us immediate feedback so they can test, learn and innovate faster. All of this has enabled us to launch and scale products like One Touch so quickly, without needing their merchants to do any integration work.

The he consumer is the one leading the charge and it’s their job to partner with those in the ecosystem to enable what the consumer wants: safe, simple and convenient payment solutions. This is the coming of age of the digital wallet and PayPal is uniquely positioned to remove friction from the commerce experience, whether consumers are looking to use trusted brands within the PayPal family like Venmo and PayPal, or other digital wallets.

Their strategy is about more than just digitizing cash. Just as they reimagined money for the Internet, PayPal is now extending the power of their trusted payments platform into the physical world in new ways to give consumers better ways to pay and merchants more valuable ways to connect with their customers anywhere.

Also published on Medium.