Good morning, and welcome to PayPal's 2016 Analyst Day. I'm Gabrielle Rabinovitch, Head of Investor Relations. On behalf of our team, thank you for joining us. We're thrilled to have you both here in San Jose and on our live webcast. We have a terrific program for you today. The agenda items are listed here. Members of our executive team will discuss each of these items. We'll start with Dan Schulman, our President and CEO. Midway through the morning, we'll have a break. It'll be about 15 minutes. If you did not have an opportunity to spend time with our innovation showcase team during the registration period, you'll have that opportunity during the break. Please reserve your questions for the end of the morning. We'll have a Q&A session with all of our executives to end the program.
USB drives loaded with today's presentation materials will be available at the registration desk after the end of the Q&A period. Now, please bear with me as I read our forward-looking statements. During this presentation, we'll discuss some non-GAAP measures in talking about our company's performance. You can find a reconciliation of those metrics to the most directly comparable GAAP metrics in the presentation. Management will make forward-looking statements that are based on current expectations, forecasts, and assumptions, and involve risks and uncertainties. Our actual results may differ materially from those discussed today for a variety of reasons, including those listed in the presentation.
You can find more information about risks, uncertainties, and other factors that could affect our operating results in our annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the SEC and available on the investor relations section of our website. You should not rely on any forward-looking statements. All information in this presentation is as of today's date, May 18, 2016. We disclaim any obligation to update the information. Now I'd like to turn it over to Dan to kick off the day.
Good morning. Welcome to PayPal. It's great to see so many of you today, and thank you so much for spending the next several hours with us. As Gabrielle said, we have a packed agenda today, but I hope that you're going to take two things away from today. The first is that we have a very deep and talented management team here at PayPal. No pressure on all of you now presenting, but you'll see that this team knows payments inside and out, and I couldn't be more proud to be a part of the team and to be working with them. Second, I hope you'll see just how much we've evolved as a company over the last several years. We are clearly well more than a button on a website. We are firmly focused on what merchants need and what consumers need.
We have an expansive and important vision. We are focused on where the world is going. We think this is going to be a mobile-first world, you're going to see us moving directly into that world. We feel if we can execute against this vision, and we are already starting to show that in our results, not only can we generate a tremendous amount of value for our customers, but we think we can generate a tremendous amount of value for all of you, our shareholders. Sometimes I hear that it's difficult to categorize PayPal because we don't fit into any neat one category. We are obviously a technology company. Everything we do is based on our software stack and our technology platform. We're also obviously a financial services company and a very large financial services company. We're kind of an issuer because we acquire consumers.
We have 170 million consumer accounts on our platform, and we're a merchant acquirer in that we have over 14 million merchant accounts on our platform. Some people characterize us as a network. We are certainly a full-service PSP, payment service provider. Outside of China, we are the world's largest branded digital wallet, but we also offer a host of unbranded services, whether that be full stack payments, whether that be rewards modules. I'll go into that in detail. You'll see that we don't do just basic payments anymore. We do remittances, we do credit, we do other things, and we're morphing into a lot more, and you'll see that during the course of the day.
Inside the company, the way we think of ourselves and the philosophy that drives us every single day is that the company we want to be is the ultimate customer champion company. That's how we define ourselves. We want to take all of our substantial assets, and we have great legacy assets to build off of, whether that's our world-class risk management capabilities, our great servicing capabilities, our scale, our two-sided platform, our newfound technological prowess that we have. We want to take all of that and focus it on the needs of two constituencies, consumers and merchants, importantly, the intersection between them as well. We feel we need to have this focus and have this external lens because the world around us, the world around all of us in this room, is moving so rapidly.
I don't have to tell all of you that the very face of money is changing. I think we are going to see more change in the financial services industry in the next three to five years than we've seen in the last 30. I think the change is going to be that dramatic. Obviously, money is digitizing. Checks are going away. Cash, I'll talk about shortly, but that is slowly but surely digitizing. Mobile is changing everything. Mobile is changing the face of commerce. I would argue that mobile is taking away the distinctions between what were previously separate categories of online, mobile, whether that be in-app or mobile web, and in-store environments. It is blurring the distinction between those. The other thing that mobile is doing is it is putting all the power of a bank branch in the palm of a consumer's hands.
We feel that these two trends provide tremendous opportunities for PayPal. In fact, I'd argue that we are just scratching at the surface of the opportunities in front of us. The addressable market in front of us is huge, I'll talk about that in just a second. I was talking to a couple of folks, some of you in the room, and some of the leading VCs in Silicon Valley, and what they all said to me is it's hard to think of that many companies here in the Valley that have so much more runway ahead of us than we do behind us, especially at our size. I think that's absolutely true. Think about it. 85% of the world's transactions are still done in cash. There's no question in my mind, I think it's inevitable, that slowly but surely, that cash will begin to digitize.
That digitization is a tremendous tailwind for PayPal. I'm not saying that cash is going to go away in the next five, 10, 20, or 50 years, I am going to say that there's no question that we are seeing that movement from cash to digital transactions, I believe that the advent of mobile phones and software is going to accelerate that transition. The second thing is that, as I mentioned on the last slide, mobile is blurring the distinction between online and offline. The saying we have here is commerce is just commerce. What do I mean by that?
When I order ahead from the PayPal app on my mobile phone to thousands of merchants that are on that app to order something, whether it be a sandwich or to pick something up, I order ahead, I pay for it, I go to the store, I pick it up, I skip the line. Is that an online transaction or was that an offline transaction? It's both. They're coming together. I would submit, let's take time out of the equation, that 20 years from now, there really won't be point of sale anymore. It will basically be mobile checkout. Mobile checkout will blur the distinction that we think of today as online and offline. It's already happening.
If you look at the holiday sales of last year during the Black Friday weekend, more people shopped online using their mobile phones predominantly than they did in store. If you look at recent retail traffic, you're seeing an acceleration to more online, more mobile than people going into stores. These are both tremendous tailwinds for PayPal. That addressable market is $100 trillion. I'm not saying that that $100 trillion is available to us right now, I am saying as we look out into the future, that is the market that we are attacking. Just to put rough numbers on it, if you round our revenues, let's call us about a $10 billion business today. We're going after a $100 trillion market. That's the market share that we think we have today and what we can address going forward.
In order to do that, we need to change our value proposition. We need to build on the great assets that we have and take us from historically where we've been to where we think consumers and merchants are going. The first set of constituencies that we focus on are consumers. We have some pretty audacious goals internally for our consumer segment. We are putting on anywhere between 15 to 20 million consumers a year, or customer accounts onto our platform a year. We hope to accelerate that as we go forward. What we really are focused on is engagement per customer. You've seen our engagement go up basically quarter after quarter as we've started to implement this strategy. What we really aspire to is to go from a PayPal customer using PayPal twice a month to a PayPal customer using us twice a week.
If the lawyers would let me say it, I would tell you what my own ambition is, which I'm going to do anyway. Sorry, Louise. Look, my own personal ambition is that a PayPal user should use PayPal every single day. That's what they should do. By the way, we have proof points of that. If you look at the most engaged Venmo users, they use Venmo every single day. By the way, if you look at the most engaged PayPal users, they're already over two times a week, as well. This is aspirational. I always say, don't build it into your models because it's a long time coming. That is what we are focused on as a company. To do that, we need to basically rethink what we want to do with consumers.
We think there's a huge opportunity to basically democratize financial services, what we mean by that is that the basic things that all of us in this room take for granted, things like paying a bill or cashing a check, getting a loan, sending money to people you love overseas. For most people in the world, for over two billion people, that's incredibly timely. They stand in line, they wait for half an hour, an hour, to do a currency exchange, then they pay an exorbitant rate to make that currency change. That's ridiculous. We feel with technology and with mobile phones already out in the market as a distribution channel, that we ought to be able to do those basic money management and movement faster, quicker, simpler, easier, more securely, importantly, less expensively than other alternative options that are out there.
To do that, we need to move from this, which is our historic consumer experience. Somebody could load their PayPal or decide to pay for a purchase online with either credit, debit, or a bank account, then safely, securely, and quickly, they could check out with predominantly an online merchant. By the way, this simple thing right here has been a great building block for all of us. It is everything we do to move forward. We are not abandoning this. In fact, Bill will talk a lot about One Touch. One Touch radically changes this checkout experience. We want to continue to make checkout as seamless and frictionless and as easy as can be for consumers to purchase. When they do, we drive incremental sales for our merchants.
If we want to move from two times a month to two times a week, and maybe even more, if I'm allowed to say that, we need to move to a different proposition. We want to move from this to this for our consumer experience. What you can see is a much more robust management and movement of money. We want to allow consumers to put all forms of currency onto our platform. We just announced that we are opening up in thousands upon thousands of retail locations, the ability for somebody to go to a cashier, give cash, and load that cash right on to our platform. We are looking to put cash loans, P2P, other forms of currency onto our platform. Open that aperture up into our platform.
Once they're on the platform, for those who are underserved, and which we are targeting predominantly here, having personal financial management tools to manage their money is incredibly important. Budgets are incredibly important to this segment of the market. I'm going to bet, it's going to be a crazy bet, that none of you in the room here do a budget. Do you every day do a budget? How many? Zero. Okay. That's because doing a budget is incredibly difficult to do, you have to write down every single transaction, the amount that you have for that transaction. You can be very dedicated for a day or two, and then you just fall off.
If people can start to put their money onto our platform and take it off, either online, in-store, through ATMs to get cash out of the platform, do international remittances, pay their bills through our platform, we can start to categorize all of their spend, and we can do that automatically through software. How much did you spend on transportation? How much on lodging? How much on food? How much on entertainment? You define other categories that you want us to automatically create a budget for you. When you hit a limit that you set for entertainment, we can send you a text message and say, "You're going over your budget on this. What do you want to do? Do you want to maybe send that into a sub-account to one of your kids?
Maybe a sub-account where you're going to save for your kids' education or for Christmas presents?" Whatever it may be. We want to be in the middle of how consumers manage and move their money for the underserved market. We also want this to be a full choice, full optionality model for consumers. That's incredibly important for us as we think about being a customer champion. That means that we want to allow people, if they want to sign up with their credit card and default on their credit card, that they can go and do that. If they want to do that on their debit card, they can go and do that.
We want to be the ultimate customer champion, and we feel that if we can put customer choice firmly into our business model, that it also opens up the opportunity to work with the entire financial services ecosystem. Because we can become a great partner for them to drive incremental spend on their cards and usage, incremental customers, and we can be great partners together. This vision, this story, is resonating extremely well within the ecosystem, and we're quite confident that this is the right direction to go on the consumer side. Now, we have a two-sided network, and that's part of our secret sauce. On the other side of the network are merchants. For merchants, we have just as dramatic a change in the value proposition that we're offering them.
If you look up here, what you saw in that historic experience, it is this Checkout with PayPal button that merchants used to take from us, and it was a great proposition. We'd drive incremental sales. They'd put it on there. Incremental sales would come. The bigger we'd get, the more important we'd become to merchants. We were just X% of their checkout. We were an important partner to them, but not necessarily a strategic partner to them. We weren't necessarily a strategic partner to them as they thought about where is the world going in terms of mobile, and how do they use mobile to get closer to their customers? Because every retailer, every tech company, every mobile wireless carrier, are thinking about digital payments and how do they use that to advance their business initiatives that they have.
What we have started to put into place right now, and you'll see this over the course of the day, is a full services platform with multiple capabilities, whether that be 100% payment processing, and you can see all of the different types of payment processing on the bottom there that we will integrate into a merchant's checkout experience, whether it be Discover, Mastercard, Visa, American Express, Android Pay, Apple Pay, LMNOP Pay. Whatever it may be, we will integrate that simply and easily on an unbranded fashion into a merchant's checkout site.
We'll also offer them the opportunity to use their rewards points or capabilities right onto our platform, so if somebody wants to give a consumer, a merchant wants to write an application and reward a consumer with some sort of points or whatever it may be, right away, right at checkout or right at the time they are paying for that, they can use either those rewards or some of those rewards and some other tender type that they have. Split tender. If they want to put transactional credit on their site, we can do that for them. If they need working capital, we can provide that for them. If they want to engage in contextual commerce, which is, you'll hear about this later today, which I think is the next iteration of commerce.
It's basically a merchant taking its storefront to where customers are, as opposed to trying to drive customers to their storefront. We have tools and API sets for them to do that. We have a full services platform that we are looking to, on an unbranded basis, to partner and power the applications of our partners. That is why you're seeing so many partners, and we'll talk about this, begin to partner with PayPal, because we are helping them to advance their strategic initiatives. Very importantly, once a merchant launches their app and we power it, we also position the PayPal-branded button, our digital wallet extremely well. We typically drive incremental traffic to our branded wallet as a result of this.
What we can do is use the 170 million-plus consumer accounts that we have in the future to basically seamlessly credentialize the authentication of that PayPal digital wallet holder into the merchant application. The problem that merchants have is, one, they got to figure out the right value proposition, and then two, they have to drive consumers to their app. Any friction in that sign-up, of course, causes drop-off. Not only can we power the app, but we can populate the app as well. We think this is really important because we think the real thing that creates the explosion of digital payments are value proposition changes, not form factor changes. We're beginning to see all of our efforts reflected in our results. Not only are our revenues going up, our TPV is up. You saw our MS TPV last quarter at 39%.
Our mobile volume's up 54% in the first quarter. Importantly, the number of customer accounts we're putting on and engagement is growing quarter after quarter as well. What's very encouraging to me is that the more successful we are today, I feel the more successful we will be tomorrow. There are a lot of people who sometimes say, "Well, you're being really successful right now, but what will happen five years from now?" Well, truthfully, I don't think any of us knows what's going to happen five years from now. Who knows what the world will look like given the political environment we live in right now and everything else? I will say this, the bigger we get in terms of our customer base, the stronger the flywheel effect that occurs.
The more consumers we have, the more important we are in the overall ecosystem, the more important we are to merchants, the more merchants we have, the more important we are to consumers. Then you see from the value propositions that we're putting here, the more services we offer to merchants and consumers, the more likely they are to stay with us. I think you'll see later on that if we add one additional service, like P2P, to a consumer who was just doing transactions with us before, their likelihood to stay with us goes up dramatically. We are really proud of these results, but we're really more focused on what's driving these results and how does that keep us with the momentum that we currently have right now.
We know you count on us for this, is our commitments to all of you. We laid out these commitments back in June when we were doing our roadshow for PayPal, you can see on every single one of these, we either met the high end or exceeded the commitments that we laid out to you. First quarter was more of the same. We take our commitments very seriously, and we think them through with a lot of diligence on our part. When you're looking out three years, it's hard to know exactly what's going to happen in that three-year period. You are making some bets on what the future will look like. We think very carefully and thoughtfully about it, and we know these are important to you.
They're extremely important to us, we think if we stay focused on being a customer champion, we'll continue to deliver the commitments that you expect of us. I hope at the end of today, you are going to see that PayPal has evolved so much from where it was to where it is today, but how much more we can evolve going forward. This is the new PayPal. We have an expansive and important mission. We're executing on it. We couldn't be more excited about the opportunities in front of us and the future and what it holds for us as well. Thank you very much for being here. I now want to introduce our next speaker. I'm going to embarrass him a little bit. Bill is the head of our Global Product and Engineering group.
Bill is one of the smartest people in the payments industry that I've ever met, if not the smartest person in the payments industry. He has an uncanny sense of not just what customers want today, but what they want tomorrow. Not only does he know that, he and his team drive forward to get us there and deliver. We are hitting our delivery commitments like we've never done before. The other thing about Bill is his parents knew he was going to go into payments. They knew. Because why would you name somebody Bill Ready, like, "Is my Bill ready?" if they didn't know he was going to go into payments? Somebody who was born to be here, let me introduce Bill Ready.
Dan's already quite a tough act to follow, I didn't know I was going to get that introduction, which will be very difficult to live up to now. Really great to have all of you here this morning. As we get into a little bit of our end-to-end platform, how we're delivering on those commitments that Dan talked about, I want to set a little more context around some of what's happening in the industry. You heard Dan talking about mobile and just how transformative that is. It's the case now that mobile has become the primary computing device. I'll say that again. Mobile is the primary computing device now.
It's funny, in the early days of Braintree and Venmo, when I would share that vision for where mobile commerce was going, it sounded a bit fanatical and like a lunatic, because at the time, five-plus years ago, mobile was dollar downloads and ringtones, and that was the only thing people purchased on these tiny little touch screen devices. Now, it is objectively true that mobile has become the primary computing device. People spend more time on mobile than any other device. You have more time, more of the e-commerce shopping happening on mobile than any other computing device. That was true not just this past holiday shopping season, the shopping season before that, you crossed that tipping point in terms of e-commerce shopping happening on mobile devices. You see that from a number of different third-party research firms that have pointed towards that.
The interesting thing that's happening as a result of that is that consumers are demanding very different experiences on mobile than they had on laptop and desktop. That really, in some ways, creates a lot of issues for the ecosystem. In many ways, it creates a lot of opportunities for the ecosystem. When you think about the fact that people are spending more of their time on mobile than anywhere else and demanding different experiences is part of why you see this gap between people doing the majority of their shopping on mobile, but not necessarily the majority of their buying just yet. Depending on which third-party research you would look at, 10%-15% of purchases may be despite the fact you have more than half the shopping.
People aren't converting as much on mobile as they have on laptop or desktop, which really is because the experiences have to fundamentally change. People are demanding a rewiring of the commerce experiences out there. If you're the CEO of an e-commerce company, if you're running a retailer with a major online presence, the number 1 thing on your agenda is, "Oh my gosh. My consumers have all moved to mobile, but my experiences haven't yet. What do I do? How do I catch up to that?" If you're a consumer, you're rethinking where you get your different experiences. How do you get transportation services? How do you get lodging services? Where do you get financial services? You're rethinking those as a consumer.
As Dan talked about, there's over the next three to five years more change coming than we've seen in the last 30. Very true. We're seeing much of that already. Let's talk a little bit about why PayPal is at the center of that and why we are uniquely positioned to go deliver against what the ecosystem needs and deliver the buying experiences that consumers demand, deliver the financial services experiences that consumers demand, and that the merchant side of our ecosystem is so keen to get to. The unique part of PayPal is the two-sided network. You heard Dan talk about that. We are unique in that we're the only player that operates on both the consumer and merchant side of the payment ecosystem and does so at scale globally.
You just don't see that anyplace else, particularly when you think about controlling the experiences from the consumer all the way to the merchant. All the many, many different things that happen in between a payment transaction between the consumer and the merchant that can have 20-plus entities that touch a transaction in the sort of typical payments infrastructure, PayPal can see that end-to-end. As we move into a world of more and more new experiences, our ability to control the end-to-end from the consumer all the way to the merchant in the two-sided network lets us deliver experiences that others can't. While that has been traditionally what made PayPal so unique, we're enhancing that. You heard Dan talk about that in terms of where we're going and the expansive vision around where that can go.
Tangibly today, we're doing things with, you look at the consumer side of our value prop with Xoom coming in and offering international remittances, which is a really, really important part of the life of those consumers that need to get money home to their families. Venmo, that has become a defining part of the experience for college students and millennials and something they really connect to, which is sort of unheard of for financial services. You look on the merchant side of that, where with Braintree, we're getting to next-generation commerce and getting to the kinds of apps and experiences that really foreshadow where the rest of the industry is going, that are building on top of Braintree and putting their entire checkout on top of Braintree.
Expanding what we do for the merchant from, as Dan described, not just the button, but the entire purchasing experience. While Braintree's doing that online and in-app, for in-store, we have Paydiant coming into the family. It's taking that in-store as retailers build their own apps for in-store purchasing, bringing a full end-to-end solution for that as well. Interestingly, all these things are feeding back into the network. You look at Braintree that not only is powering a full checkout, it's brought PayPal into Airbnb and Uber and Dropbox and all these great next-generation experiences, bringing PayPal acceptance into those experiences, along with powering the full checkout. Paydiant, getting to great in-store applications. We'll talk about Subway and some of those kinds of things where we're not only powering the full experience there, but bringing PayPal as acceptance method through those things.
There really is a great flywheel effect between the consumer and merchant side of the business, where our consumers look at the broader set of financial services we can provide, the broader set of ways they can get to new experiences because of PayPal. Our merchants look at the great incrementality we can bring them by powering so much of their commerce ecosystem, but also the consumers we can bring to this fantastic flywheel. Importantly, because we have the end-to-end experience on both sides of the network around the world, we can go light up experiences faster than anybody else as this world evolves over the next few years. Let's talk about the first of those constituents to the merchant side. We, as Dan described, we're organized around our two primary customer constituents, consumers on the one side and merchant on the other.
Importantly, within my group, we've got consumer-focused teams, merchant-focused teams, we're focused on the flywheel between those, that we get to consumers thinking of us as a central part of their life and merchants thinking about us as an operating system for commerce. What we provide for them, the sort of PayPal acceptance that when you think about 3 years ago, this PayPal button is the primary thing you thought about for PayPal. You can see we've already started to expand so much of what goes with that loyalty and in-store transactions and purchase financing and offers and all these things that bundle in with what PayPal offers up, both to the consumer as well as to the merchant in terms of ways they can get incrementality from the consumer.
In addition to expanding what we wrap around that, we're also improving the core service. The core digital wallet experience is going from a nice-to-have to a must-have. That's sort of a crazy thing to think about. That you look at the tremendous amount of volume that PayPal does today. Honestly, in the laptop/desktop world, typing in your PayPal username and password was better than typing in your payment credentials and shipping address and billing address. On a laptop or desktop, it was good, but the difference between that and the legacy wasn't as big as it's becoming in the mobile world, where it's truly becoming must-have in the mobile world, that people will not go type in lots and lots of information on a tiny little touchscreen device. They're demanding push-button experiences.
To deliver the push-button experience, you need the digital wallet. You need the two-sided network. The core value prop is enhancing at the same time as we're wrapping more and more around that core value prop. For the merchant side of this, the core value prop for them really is this full end-to-end. As that CEO of that e-commerce company or the head of the online division of a major retailer that's thinking about the convergence of these things happening because of mobile, every single thing they need to go power their buying experiences, not just for PayPal acceptance, but for the entire buying experience, we're powering and importantly, helping them to bring their experiences to life, letting them bring forward their loyalty programs, their rewards programs, that they can do things that are about much more than just form factor conversion.
That they can do things that really deliver new value to the consumer because of mobile. Honestly, those are the experiences that gain traction. You have this dichotomy of many players that have really, really tried to get mobile commerce and payments to happen with little results. Then you have other experiences that have just taken off and exploded. The difference is the ones that use mobile to go deliver a value proposition to the consumer, those are the ones that take off. As we think about enabling the full set of things that a merchant may need as we move into this mobile world, importantly, we're giving them all the tools and capabilities to go deliver their value propositions, right? That's really, really, really important and fundamentally different than just enabling moving a swipe to a tap or change in form factor.
We're letting merchants deliver their value proposition in their way, bring that forward in a new context, whether that's mobile or other new contexts we'll talk about, but helping to enable them to do that and helping them to connect with consumers via our branded experiences at the same time. There's this great synergistic effect between those things. Importantly, as we do that, partnering with much of the ecosystem to do so. Let's talk about how we're doing in online checkout innovation. There's some stats here that we'll go through, and of course, the obligatory up and to the right chart talking about our mobile growth. If you look at this huge business that PayPal has built in online, our merchant services business grew at 39% in Q1. You think about that on this huge denominator, 39% growth.
You look at the e-commerce industry in general, and depending on sort of which research report you look at, plus or minus 10% kind of annual growth, PayPal's merchant service is growing at 39%. When I say that the value prop is becoming a must-have, not a nice-to-have, and we're expanding that, those are the objective results of us delivering on that and delivering on it at huge, huge scale. To give you a little more of how we're doing against competitors, Comscor e recently did a research report on PayPal versus other new wallet players, in other traditional checkout experiences, PayPal converted at 87.5%. Put that in context, 36% higher than the next best new wallet competitor, 42% higher than standard checkout.
When you sort of visualize, okay, how much better is it to have a push button experience than to go type in lots of payment credentials and shipping address and billing address, you see that reflected in conversion. That conversion, that issue that I said is in the mind of a CEO of an e-commerce company or a major retailer, they're saying, "My users just aren't converting. They're shopping with me on mobile, but they're not buying." This is the demonstration of how much more PayPal delivers on that than the legacy buying experiences out there, or even other new entrants that don't have the two-sided network at scale that we do. All that leads to our mobile business that cumulatively, since the inception of our mobile business in 2006, we've done $175 billion in volume.
If you look at that, it took several years before it really gained traction, but now that it is, we did $66 billion in mobile last year alone, right? You say $175 billion in the 10 years we've been doing mobile, $66 billion of that last year alone. That is clear evidence of just how much more our value prop is resonant as we move to mobile. The other part of this that's really important is our global reach. When we talk about people moving to mobile as a primary computing device, that's not just here in the U.S. That is a global phenomenon. In fact, for much of the rest of the world, people aren't moving to mobile as a primary computing device, mobile was their first computing device. That's where they started.
They're not thinking about, how do I move from a laptop or a desktop? They never had a laptop or a desktop. Mobile was the first thing they had. Our global reach is really important. When we say we're a global company, we have more than half our revenue comes outside the U.S. More than half our accounts are outside the U.S. Global reach, that 170 million consumers, more than half of them are outside the U.S. Importantly, Interbrand listed PayPal as a top 100 global brand, which is a great honor and indicative of how much consumers think about us as a sign of trust and safety and security, that I'm going to have a great, simple experience that I know is safe when I use PayPal. It's indicative of that.
The interesting thing, when you go outside the U.S. Our brand is even stronger. In the U.K., we are ranked the number 3 financial services brand in the U.K. In Australia, we are ranked the number 4 brand overall, not just for financial services, overall. The others, you had Woolworths, one of the largest retailers in Australia, Google, Coles, PayPal, as the overall top brands in the entire country. You go outside the U.S., and that's even stronger in terms of how much we resonate with consumers outside the U.S. Very important for our merchants because we enable 14 million merchants around the world, and much of what they want from PayPal is to reach consumers around the world. In fact, cross-border trade is becoming more and more important.
What you have happening as you move to mobile, as you move to these global communication platforms, Facebook, Twitter, app stores, these are all global distribution platforms. As people connect with one another around the world more seamlessly, they also transact around the world, and they want to transact around the world more seamlessly. As you do that, the PayPal value proposition is on display because we have the network to let them do so, and we have both sides of that network so they know they can transact safely, securely, and with ease when they see PayPal. How important is this? I have some Forrester stats here. $424 billion by 2021 is their projection on how much e-commerce will happen cross-border. It'll be 15% of online commerce by 2021 according to that research, and China will represent 40% of that.
You think about, okay, well what's PayPal doing inside of that? What's PayPal's reach there? When you look at how consumers activate on PayPal, consumers activate via cross-border on PayPal, one in five in North America, two in five in EMEA, one in three in APAC. Our cross-border shoppers spend twice as much with PayPal as those that are domestic only. Cross-border trade is a full 25% of our business. Just like with mobile where we over-index the industry several times, on cross-border trade where the rest of the industry is saying, "We'll get to 15% by 2021," we're at 25% today. This is the power of the two-sided network at scale around the world.
Let's talk a little bit more about how we're driving forward on delivering this rewiring of the world's buying experiences, as it is the world's buying experiences that we endeavor to rewire, the world's financial services that we endeavor to rewire. We talked a lot about PayPal One Touch, and Dan hit this a little bit. It is a big step forward on our core value proposition of just how do you shop with PayPal? How do you buy with PayPal? PayPal One Touch, which basically lets you, across the merchants where it's accepted, if you're a consumer that's opted into it, you can make a purchase literally by just pushing a button. No user ID and password required, no entering of payment credentials, no entering of shipping and billing address. Truly a fully push-button experience, no typing whatsoever.
We rolled that out to PayPal users just over a year ago, and it's become the most rapidly adopted product in the history of PayPal. We have more than 22 million consumers that have already started using the product. It's in 144 merchant markets around the world, 200-plus consumer markets around the world. More than half the Internet Retailer 500 has PayPal One Touch. You think about that in a world where there's lots and lots of turnaround, new offerings, new players vying for consumer attention and merchant attention, and consumers saying, "Well, where can I use it? Oh, not a lot of places." Merchants are saying, "Well, how many consumers can you bring me?
Not a lot." We're saying we can go roll out a great buying experience that delivers great lift and conversion and do so globally, and importantly, this is really important, without the consumer or the merchant having to do work to get it. It's not just that they want the new experience and they really need the new experience on both sides of the network. This is where PayPal's really unique for both the consumer and the merchant. We can make it so there's no work for them to get it, right? The consumer literally just opts in. A merchant doesn't have to go do new coding. They don't have to make roadmap changes for much of our merchant network. That's why we have more than half the Internet Retailer 500 just in the first year accepting the product.
Good place to maybe move and show you, but what is this experience like? Let's just get a visual of what we're talking about with One Touch. We'll show a video here. This is going to be a little slow. This is the pre-One Touch world. We're going to take you through what is an online checkout today. For the sake of the eye chart here, we're going to do it on laptop and desktop. It's far worse on a mobile device. As you come to checkout today, we've got a little timer up here that's counting just how long does this take, filling in all this information. Imagine doing this tiny little touch-screen device where you're going to have backspaces and fat fingers and get really frustrated.
This is why, if you've got to do all this on a tiny little touch screen, why is it that users are shopping on mobile but not yet buying? It's because most of the industry is asking them to do this. It's going to take a full minute on a laptop or desktop. On a mobile device, it's two-plus minutes, and abandonment rates are huge. It really is a fundamental problem that the industry is facing. This is what, if you're that e-commerce CEO, what are you wrestling with? Why aren't my consumers buying from me? This is why. By the way, those consumers have other alternatives now, right? If they're not buying from that retailer, they're buying somewhere else. They're thinking about, I've got to solve this problem.
I can't put my consumers through this because consumers, particularly on mobile, which is where they're spending most of their time, will not tolerate this buying experience. It's antiquated. It's slow. This is what we're taking them to without them having to do work. Literally press a button, no sign-in required, confirm your payment, where you want to ship, literally you're done. That's it. Importantly, zero typing across all of that, truly just push buttons. You take a full minute on laptop or desktop, two-plus minutes on mobile, down to roughly 10 seconds, no typing required. This is why you look at and you say, "Well, hey, why does PayPal have a full 30% of their transactions on mobile when the rest of the industry is struggling to get to 10% or 15%?" This is why.
Really importantly, as we shift and talk about, well, okay, where else are we delivering this experience? Small sellers have always been the strength of PayPal. In fact, much of PayPal's legacy is democratizing great buying experiences and putting them in the hands of small sellers. One of the really interesting things that's happened as you have this explosion of cloud computing and alternatives for more and more small businesses to go build, you have a lot more places where a small seller can go sell online. It used to be that eBay was the exclusive domain of where that would happen, and it's still one of the best places a small seller can go sell things online. That's why PayPal and eBay worked so well together and still work so well together.
As you have more and more alternatives and more places a small seller can go sell their wares, create their own site, the PayPal value prop is just as strong and on just as much display with those small sellers, in those places. When you think about the BigCommerces of the world, the Shopifys of the world, the Magentos and 3dcarts of the world, 1,900 other plus partners that work with PayPal, we're solving this problem for their small sellers of how do you get around the world? How do you get great mobile experiences? How do you create trust with consumers that don't know that merchant? How does a consumer know they're going to have a safe buying experience? We're solving that problem, the PayPal value prop is really on display there.
Rather than hear me talk about it, we're going to tee up a video of CEO of BigCommerce to tell you how they think about partnering with PayPal on these buying experiences.
BigCommerce is the world's leading cloud-based commerce platform for fast-growing merchants. We power over 60,000 stores around the world, from starter merchants up to $50 million or more in annual sales. PayPal powered by Braintree gives BigCommerce and its merchants a real competitive advantage. It's the most advanced gateway on the market, comes with all of the major payment methods that a merchant wants to accept, and those who have the One Touch implementation are seeing conversion rates higher than ever before, especially for their consumers choosing it. Over the next couple of years, omnichannel will be one of the things that most helps merchants to sell more on the BigCommerce platform. From one place, you can sell through your branded online store, through social networks like Pinterest, Facebook, and Twitter, or through marketplaces like eBay and Amazon.
All of those are being integrated into the BigCommerce platform, PayPal's essential to all of that because payment needs to occur on those platforms as well. Every step of the way, BigCommerce will be working with PayPal to enable merchant success.
As you can see, the players that are enabling all these other alternatives where small sellers can go sell online, PayPal's a critical partner there across the entire checkout. Braintree for unbranded payment acceptance, PayPal for great branded acceptance, really helping to bring more and more commerce to these small sellers, just as we've always done, even though that has shifted to new contexts. We're going to talk a little about in-app. As we go a little further into mobile, we've talked about that a good bit in terms of what are the consumers demanding from mobile. You look at the in-app experiences that are really redefining how consumers will engage on mobile devices, and a strong majority of those runs on the Braintree platform. Braintree's powering that mobile commerce revolution.
The names that you know of that have defined that, Uber, Airbnb, Dropbox, Pinterest, all these run on the Braintree platform. In addition to the really big names you know, it's also the up-and-comers that run on the platform as well. To give you a couple tangible data points to take that from hyperbole to objective, like, okay, how are we doing in leading that? You look at Mary Meeker's internet trends report, her latest internet trends report, and the companies that she's listed there as sort of changing the way internet commerce works. Precisely half those run on the Braintree platform, far more than any other provider out there. You also see it on display with the launch of Apple Pay, approximately half the apps on stage behind Tim Cook getting Apple Pay via the Braintree platform.
At the launch of Android Pay, exactly half the apps on stage at the launch of Android Pay, getting Android Pay via the Braintree platform. Those are three pretty good analogs as you think about, well, how much of the next generation of in-app purchasing are happening on Braintree, driving far more of that than anybody else in the ecosystem. Why are we doing that? How is that happening? It's the case that, one, we bet on mobile really, really early with Braintree, objectively before others. PayPal has started betting on that as a lot of why the coming together of Braintree and PayPal made so much sense. Importantly, as we said, we want to go democratize access to these tools. Everybody knows the Uber experience that runs on top of Braintree.
Importantly, we said as mobile commerce starts to happen, we need to democratize the push-button buying experience, but we also need to democratize a lot more sophisticated capabilities so that app developers can deliver great mobile commerce experiences. Yes, it's great easy APIs that access the things you need to accept payments. That alone, a cool API is necessary but not sufficient. Importantly, it's easy access to sophisticated capabilities, fraud tools, being able to accept payments around the world, being able to deliver great buying experiences through native mobile APIs, those types of things. Getting access to the best online buying methods, PayPal One Touch, and other new entrants to the space, really, really important. That's why you see so many of the preeminent companies that are changing the space run on the Braintree platform far more than anybody else. It's for that reason.
It's not just the sexy API. It is what you get access to with that API, and that it can take you from your first dollar of revenue to $1 billion plus in revenue. We have many, many examples of that full journey happening on our platform and many, many companies that do $ billions on the platform. To make that even more objective in terms of how that's doing, in the last year, the transactions processed on Braintree have grown by more than 3x in the last year. Even on a huge nominator, growing at 3x in the course of the last year in terms of the transactions that happened on the platform. We talked about democratizing push-button buying experiences. 269 million consumer cards on file with Braintree. Over a quarter of a billion on file with Braintree.
When we talk about democratizing those types of buying experiences and doing it at scale that others can't match, gives you some objective data around that. 46 markets where we allow this to happen. We're not just doing this in the U.S., doing it around the world. When you think about the great experiences here that run on the platform, well, there are alternatives to those or some that have gone global. Those outside the U.S. tend to run on the Braintree platform as well. The common thread across all these things is that PayPal's strength, the two-sided network, has always been most on display as we move into new contexts, right? Every time consumers and merchants meet one another in a new context, immediately you need a brokerage of trust. You need both sides to be able to seamlessly connect with one another.
Every single time consumers and merchants have met one another in a new context, PayPal has led the way. That started with eBay in the late '90s, that has grown into a tremendous business. It then moved mid-2000s to online e-commerce for many, many other merchants, that's grown into a tremendous business. Mobile, while that started in 2016, you saw there were many years of that being less than 1% of PayPal's volume, then in the last few years, because we iterated on that early, once the consumer got there and the ecosystem started to catch up, it's a full 30% of PayPal's transactions now happen on mobile.
While those three new contexts have now become big businesses, still with lots of growth left, have become big businesses, we have two more new contexts that are just starting to shape up. The common thread of, okay, the consumer and the merchant are going to meet each other in some new place, and how do they do that? Our two-sided network that is unique allows us to deliver that in ways that no one else can. We're going to talk about in-store, we're going to talk about social and other contexts of how that's starting to emerge. We're going to tee that up first with what we're doing in-store. I welcome Kevin Laracey, came in as CEO of Paydiant, now leads all of in-store for PayPal.
Thanks very much, Bill. It's really great to be here in front of all of you today. One of the things I'd like to point out is that it's such an exciting time to be at PayPal because of the pace of the innovation that's happening. Certainly, we think there's a lot of innovation occurring in-store. To kind of go to back to one of the points that Dan made, as we're deploying more of these leading-edge, next-generation solutions in-store, what we're really doing is dramatically expanding our addressable market. Remember, all of these in-store transactions used to be locked up behind a magstripe terminal. Now, because of the advent of the mobile device, they're really available to us and available to the PayPal user.
That transition is also helping us move closer to what Dan's talked about, which is moving our customer closer to being able to use us two times a week versus two times a month, which is really exciting. What I'm going to do today is talk to you a little bit about our platform for in-store, some of the features it has, some of the benefits it delivers, but most importantly, as Bill said, how it enables us to deliver some really compelling next-generation user experiences that we call smart wallet experiences. If you look at this slide, it's really an illustration of our strategy. We want PayPal to be everywhere in-store, and that starts with having a platform that enables the merchant to enable any app that they want to be able to conduct a transaction in-store. Certainly, we're doing that for the PayPal app.
More and more, especially the largest merchants, want to launch their own branded mobile wallet capability inside of their own app, and we are making it easy for them to do that. We can even enable mobile banking apps to transact in their store if they like, or other apps. One of the ways that we're succeeding with merchants is that we're giving them a lot more capability than just payment processing. Dan talked about this. We're delivering real solutions. We have a platform that enables them with services like acquisition and enrollment capabilities to really streamline that very critical first step in getting their app going. How do they get customers enrolled very easily, very quickly, and at very low cost? We're also doing things like mobilizing what might have been a card-based loyalty program for them.
We're also providing risk and security services to make transactions done with this platform much safer for the consumer and much more cost-effective for the merchant. We like to call this platform and the capabilities sort of the eight key components of in-store mobile commerce that we're delivering in a package to the merchant. What does it really mean in terms of benefits? One of the key benefits is that by leveraging PayPal and leveraging all of our capabilities, the merchant can deliver an experience to the consumer that's the same regardless if the consumer is using an iOS device or an Android device. Big benefit. Another big benefit, a lot of these large retailers have very heterogeneous, very complicated in-store environments. They might have 500 stores that run a proprietary point-of-sale and another thousand running MICROS. No problem if they go with PayPal.
We're agnostic about that. We make the experience the same for the consumer, regardless of the underlying point-of-sale platform. Of course, as I mentioned earlier, we also allow the merchant to deploy a variety of payment instruments. Bill's talked about this. Dan's talked about it. If the merchant would like to have their own private label card or their own gift card in that wallet, they can do it. If they want standard credit and debit, they can do that as well. Whatever they want, the platform supports it. We're agnostic about it. Finally, of course, letting them accept any app that they like in their store. The platform enables that. It gives them the choice, and it gives them the flexibility to deliver that kind of capability. None of this really matters, though, unless we can deliver a really compelling user experience.
Bill talked a lot about this, rewiring the experience, making it completely different. One of the great things about our two-sided network and our assets and our platform is that we can do things like the following. We can know when the consumer's transacting. We can know what's in their wallet. We can know the context of what merchant they're at, what location they're at. We can know about the transaction, and we can use that to deliver a really compelling experience that goes far beyond just turning a swipe into a tap. What we're really doing is we're really allowing the merchant and the consumer to realize the promise of putting the mobile device in the middle of this transaction. What does that mean for the merchant? The merchant wants to leverage the mobile device to get deeper engagement, more loyalty from that consumer.
The way that they want to do it is by getting more information about that consumer every time that they transact with this mobile app on the PayPal platform, and we can deliver that to the merchant. For the consumer, we give them what they want. We give them a frictionless experience to pay in-store, to engage in that commerce transaction. The other really neat thing that we do is we can deliver back to them information about how that merchant is actually giving them a good deal, how they're earning or burning loyalty points during the transaction, how an offer is being redeemed. All of that we can expose to them.
What I'm going to show you now is an animation that illustrates one of these smart wallet user experiences, where you'll see a consumer using the Mom's Deli app kick off a transaction, and typically in a retailer app these days, it's done by showing or scanning a QR code. Then you'll see in a seamless way, with a single interaction at the point of sale, we're going to redeem an offer, we're going to deliver a payment instrument to make the payment, and we're also going to earn and burn loyalty points. Let's go ahead and roll the animation. You'll see here, kick off the transaction, selects their preferred payment instrument, PayPal, redeems an offer, earns and burns loyalty points, all with one interaction, all driven off of our cloud-based platform. Now, for merchants, we do something really, really cool.
Bill talked about this, the power of our two-sided network, and the fact that we have all of this information about consumers. This is so great for the merchant and so great for the consumer. What we're going to do is we're going to leverage the fact that that consumer already has entered their email address, their name, their address, and we're going to let the consumer opt in to using that data to register for the Mom's Deli app, including giving the Mom's Deli app their PayPal credentials. Let's go ahead and roll the animation. What's especially interesting here is this is a One Touch user, so although it said speed up the registration by logging in, they didn't have to. We pre-fill the name, email address. Consumer just sets up their password. They're ready to go. Ready to start using the app, ready to pay with PayPal.
Next, what we're going to do is we're going to show you some real-world examples of how some of our customers are actually leveraging this platform. The first one we're going to show you is Shell. Shell in the U.K. has something they call the Shell Motorist app, and what they're doing is they're leveraging PayPal to deliver a great user experience to make it really easy for their customers to unlock the pump and actually go ahead and pay for their gas. Let's go ahead and play the video.
From busy bakers to hectic decorators to multitasking moms, we know you're busy. That's why we've teamed up with PayPal to introduce Fill Up & Go, a speedy, secure mobile payment service. Here's how it works. Once you've downloaded our app, simply pull up to the pump, open the app, and enter your code. Scan the QR code or enter the pump ID. That's it. No more queuing behind weekly shoppers. No more leaving the kids behind when you pay. Just fill up and go. We'll even send you an electronic receipt, leaving you to get on with your busy life. Fill Up & Go from Shell. Download and register now.
Pretty cool. Dan also talked about how we as a company are becoming much more partner-friendly and enabling so many more services that are even enabling us to become a deeper partner than ever before with financial services firms, other firms. What I want to show you is what, for some of you, may actually be a reasonably unexpected use of our platform, and that is we're going to show you how, with our partner FIS and with BMO Harris, we're actually enabling banks to embed in their mobile banking applications the ability to get cash out of ATMs. This functionality now is actually embedded in the applications that run the two major ATM providers' ATMs for both Diebold and NCR. Let's go ahead and just play the video.
Ice cream. Kitten. Cartoons, please.
BMO Harris Mobile Cash. Just point and scan. Leave your card at home.
Money.
I think someone's been practicing.
BMO Harris Bank. We're here to help.
Great, with that, I will be turning it back to Bill. Thank you all very much.
As you've now seen from what Kevin showed with in-store, what we talked about previously with in-app and online, across all these, we're bringing together the entire PayPal platform, empowering new experiences, oftentimes in ways you wouldn't expect, right? Powering an ATM transaction that you wouldn't have thought of PayPal doing previously, but we're taking the two-sided network, taking the platform that we have, and opening that up to go power so much more of the evolving commerce landscape. All that is fully integrated, ties together, and is part of both the amazing global platform that we have and part of the flywheel effect of how this continues to just build upon itself and compound as the two-sided network is really on display across so many of those experiences. We should talk some about the other side of our network, the consumer.
This flywheel effect, what our merchants across so many of these experiences want most is connectivity to consumers. They want incrementality. They want the ability to go create transactions that otherwise wouldn't have happened. So much of the traditional payments world is thought of as sort of dial tone access, right? Like it's just getting access into sort of the dial tone versus what can you do for me that gets me a next sale, a new purchase, a next user? That is far more differentiated than just can you process a transaction? That side of our network, tremendously important, and how we serve the consumer to make sure that we have the great other side of that flywheel is super important. You heard Dan talk about if we democratize access to financial services, we can help billions of people to fulfill their dreams, right?
That sounds like a very ambitious statement, right? Perhaps a higher place in the consumer's mind than maybe what we occupy today, but we're already starting to get there with many of our experiences. As we think about becoming a central part of the financial life of a consumer, PayPal today is two to three times a month. We want to get to two to three times a week. As we mentioned previously, we've already seen for our most engaged Venmo users, they engage daily, often multiple times a day. It's something that you ask them, "Well, if you could only have three apps on your phone, which would you pick?" It commonly comes up.
I gave a talk at Stanford Engineering a few months back and told them about some of the things that we do and all the great experiences we power, and then I said, "Oh, and you may also know Venmo." All the way up to that point, the room's like, "Oh, yeah. Pretty cool." Uber, Airbnb, Dropbox. They go, "Okay, cool." "Oh, yeah, and you may know Venmo," and the room erupts. "Oh, my gosh. Venmo changed my life." It's that kind of reaction that people have, but you're seeing that across much of what we're doing. We already have a primary position in the mind of the consumer across many of our services. Take the core PayPal experiences where we talked about for online purchases, for in-app purchases, for cross-border transactions.
For each of these places, the consumer already thinks about PayPal as the primary way they'll do these things. For many aspects of their financial life, PayPal is primary already, and as we expand those, we come to even more and more of a primary position in the consumer's mind of how they think about managing and moving their money, how they think about their daily financial life. As we talk about how we're doing that, one of the things that we're doing, consistent with other major players in the industry, is that we're consciously employing a multi-app strategy, right? In a world of apps, you have thinner slices, more specialized functions, those types of things.
While at the foundation, we have the PayPal app, that recently rolled out in more than 140+ markets in a single day, driving great global innovation and great engagement with consumers there. We also have Venmo that connects to a demographic and creates an experience around social that just has not been seen in financial services before. It's not been seen in commerce before. You have Xoom that, in enabling international remittances, is this really, really important part of the daily life of the consumers that use that product. Just as you see with Facebook, for example, that has multiple apps, some of which do similar things. Facebook, when they think about, does the next generation of users want to use the Instagram app to take a photo and share it, or the Facebook app? It's all feeding back into the same network, right?
The user can choose the front-end experience they want, Instagram to take the photo or the Facebook app to take the photo, but it's feeding back into the same network. We're doing that across these experiences as well. We'll talk more about that, where Pay with Venmo is starting to get into acceptance at Braintree and PayPal merchants. PayPal and Xoom, you'll be able to use PayPal for these international remittances. We're bringing those things together so you're getting the benefit of the network, just as you would with the Facebook, Instagram example, or think about Google, where you segment not on demographics, but on the use case, the slice of use case.
That whether you're using Gmail or Google Maps or Google Docs or these different things, you have slices of experiences that are separate apps, but you have a common network across those things. We're employing that kind of strategy, but importantly, bringing together the benefit of the network behind those things so that we can segment on either demographic or on use case, which is really important as we move into a mobile and social world, but tying that all together. How much are we doing of that? What's that look like? We have more than 170 million consumer accounts. We've talked about that. The PayPal side is massive scale on that. Far bigger than you see from any other financial service provider, really, particularly outside of China, as you think globally.
Venmo, at more than $1 billion a month on Venmo, you think about that. How many apps in the world do more than $1 billion a month in volume through a native app? You probably don't need all your fingers to count the number of apps in the world that have that kind of volume flowing through them. Xoom, at 1.6 million accounts as of the end of last year, again, this really critical service connecting users around the world. Significant scale there across many, many markets. We'll come back and talk more about Xoom. All that together, you're getting to $66 billion of mobile payment volume in 2015 and 1.4 billion mobile payment transactions.
Doing this at huge, huge scale, and we're just getting started and sort of expanding to the full set of what Dan talked about and the expansive vision of what we can do to go serve our consumer and help them to manage and move their money, democratize access to financial services. Where are we headed? We hit this a little bit before, that previously, you thought of PayPal, and you had just a few ways to get money into PayPal, and you had really only one way to get it out. If you only had one way to get it out, you're probably not going to put as much money in because it's harder to get it out.
As we think about expanding that, we are simultaneously expanding both sides of the money coming in and your ways to get money out, right? That there's far more ways to get money in, and we embrace consumer choice. We want consumers to use any way they want to be able to go transact with our system. That opens up a lot of partnership opportunity, ways we can work with others, and we want to let them go transact any way they want on the other side of that, whether that's online, in-app, whether it's taking money out through an ATM, all these things. Any way they might think about getting money out of the system, we want to let them do that as well.
If we can do that, we can really start to do so many more things around how we help them manage and move their money. There's quite a lot that we think about in terms of what we can go do with that, but the foundation of that is that if we can get great access for money into the system, great ways to get money out of it, at a moment in time where consumers are reimagining who provides these services, right? You think about something like Venmo that now is the core part of the daily life of a millennial.
That's an example of how people are just, as they move to mobile, saying, "Well, hey, I sort of reassess who I look to do these things for me, and there's new things that can be done for me that weren't there before." Importantly, it's at a unique moment in time where we have the opportunity to do it, and consumers are already thinking about, for so many of these other new experiences, well, PayPal's already who I look to provide those. At the moment in time where consumers are open to finding these new experiences, PayPal has license to provide those new experiences. Let's talk about one of those that gets a lot of attention in Venmo and has really become a cultural phenomenon.
We talked about the $1 billion a month that Venmo hit in January. You talk about the obligatory up and to the right chart, continuing to accelerate, right? If you look just in the last couple of years, Venmo has gone from, you go back here to early 2014, still very much this experimental thing that people are saying, "Wait, people are having a conversation about their payments? What's that? I haven't heard about that before." To on this side of it, one of the most popular apps in the world when you think about how much dollar volume is going through that app.
Continuing to expand, and as we've done that, going from experimental app back here to essential part of the daily life of many users, we're expanding out the way we offer that service, making sure that it's gone from experimental to well-rounded with 24 by seven customer support, phone support, all these kinds of things that as a consumer thinks about this as a more essential part of their life, that it's well-rounded and offers those things as well. The real secret sauce of Venmo, in addition to being just a really slick native transaction that takes the friction out of paying somebody back out of sending money on a mobile device, is really the fact that it captures real-life moments, right?
That you think about the moments of magic in that, and that you get on Venmo and you see, oh, my friends are already there, and I can transact with them seamlessly. It's really easy. The awkward exchanges we had before, like going to dinner and we all plop down 10 credit cards and the server looks at us like, "I want to murder you," goes to, "Okay, one person can put down a card, and I'll just Venmo you." Right? Not only that, the conversation about the great dinner that we had or the round of drinks that we shared is captured there as well.
Interestingly, this conversation, this thing that was this sort of oddity of Venmo when we first started doing it that we thought was really important because we really felt that while P2P was a great early use case for mobile, we also knew that there were real conversations to be had there, right? Social commerce, if you look at sort of five years ago when we started with this, social commerce was dead, right? Everybody had tried it hadn't worked, and sort of social commerce was thought to be dead, and it's like, oh my gosh, why are you doing this? The difference was we captured organic transactions. It's sort of that adage that how do you know where to put the sidewalks on campus? Well, just look where the grass is worn down already.
Everybody else was trying to force conversations in places where they weren't happening. We said, "Let's just capture the organic conversations that people may not be ready to talk about every single payment they make, but they're person-to-person payments, those tend to be in person with a group of friends." There's probably a conversation around how that happened, the concert that you went to or the dinner that you shared or the event that was shared by the group. There's an organic conversation that we captured, and we see that many, many users open the app just to engage with the news feed, just to see where other people are transacting and comment on those things and like those things. That's a big part of how we get to a significant portion of Venmo users actually engaging daily.
Even when they don't have payment transactions to make, they engage daily because they want to see what their friends are doing. They want to see, what were my friends up to last night? They see that in the app. Importantly, as we think about expanding that, you look at emojis inside of Venmo and sort of what people are sharing. Pizza's the most popular emoji. It gets shared every few seconds, or excuse me, 20 times, or once every 20 seconds, a pizza emoji gets shared, which sets us up for things like we did an experimentation with Papa John's last year to make it so that at the end of a Papa John's purchase, you could go split the tab using Venmo, right? Well, the reason that happened is they could look and see users were already declaring, "Here's what I use Venmo for.
I'm already using Venmo to go split those transactions." There's many, many other things that people are using Venmo for. In fact, just Venmo me or I'll Venmo you, Venmo has become a verb, and you look at this. These are just some tweets just in the last few days before we had to finalize presentation here, right? Just some recent ones where you look at whether you're at, I think this is University of Central Florida here on the East Coast all the way to Fresno State, so not just Harvard, Princeton, Stanford, the elite places. It's everywhere. A state school guy myself, no judgments there. From Central Florida to Fresno State, it's become an essential part of the college experience, right? That your college experience, Venmo is one of those things that defines it.
Just Venmo me is part of what's in your mind when you think about what was your college experience. When we talk about becoming a part of the daily life of consumers, that's what we mean. Why is that happening? You see the one down here at the bottom. Go do a Twitter search yourself, right? These are not unique. These are sort of out there all the time. "I care more about the captions in Venmo than about actually getting paid for anything." Think about that. A financial service where people care more about the experience than the actual dollars being exchanged. Where does that put you in the mind of the consumer relative to typical financial services? It's a completely different, it's not a different arena. It's a completely different sport, right?
That is just totally different in the way the legacy sort of industry thinks about these things. It's part of how the next generation of consumers thinks about them and what they're going to demand. Venmo me as a verb, unlike others, that can mean, oh, we'll use some other service. Venmo necessitates you're doing it on Venmo. Venmo is synonymous with if we're going to transact, you're going to pay me, or I'm going to pay you. Venmoing you is not only the verb, it prescribes how we're going to do that. We're taking that from this small slice of transactions. Imagine if this small slice of transactions, person-to-person transactions, made it an essential part of the daily life of those users.
As we now expand that to the other 90% of the transactions they conduct, how much of a part of their daily life can that be? We look at what we're doing at Pay with Venmo. Pay with Venmo is now in beta. Interestingly, we're not just making that so that it's another buying experience, that it's okay, another push-button buying experience. It's capturing the magic of Venmo and bringing it to transactions outside of P2P. You look at this. This is Munchery, where not only can I have a seamless purchase on Munchery, I can split the transaction. If I need to split it with my roommates, I can do it right inside of the purchase that we split it right there. It takes all the awkwardness out of, "Well, hey, I sprang for the food.
You got to pay me back," which for most of us in this room, we're probably okay with just picking up the tab, and you'll get it next time. I'll get, whatever. If you're in college, you're a millennial, you're still struggling with student loans, all these things, that matters a lot. You can share it. You can say, "Hey, here's the great thing I got that I want my friends to experience." You can share it right from within the app. There's a great flywheel around that and the engagement it creates, and we think bringing that to more experiences only spins that flywheel faster. You also see it on display within Gametime. We're testing with this. We've opened it up to just over 1 million users to test out.
We're keeping it tight with a couple of merchants right now because we really, really want to make sure the experiences are right before we really start to expand it widely, which we're looking at doing in the second half of this year. We'll start to broaden the aperture of places where you can use Pay with Venmo, but we really, really want to make sure that we get the experience right, that we're capturing the organic conversations, going where the grass is worn down already, and that it's something that users are going to really love. We've had fantastic feedback so far. We're looking forward to expanding that out later this year. Let's watch it in action and take a look at a video of just what Pay with Venmo is doing.
As you look at that, as I described, so much of that is beyond the payment, right? It's capturing the conversation, curating that experience, curating the connection between users. It's not a coincidence that we started with two experiences in Munchery for food services and Gametime for events because these are social activities, right? It's where the conversations are most natural, so we can make sure we get that experience really right. Like I said, looking forward to broadening that out to more of our base in the second half of this year. While Venmo has become an essential part of the daily life of users in a great scale, we have even greater scale within the PayPal app. As I mentioned, we've recently launched in 140-plus markets simultaneously with great increased engagement.
A lot of fantastic things happening with the innovation in the PayPal app and PayPal P2P. I want to welcome up Jo Lambert to tell you more about both of those. Thanks, Jo.
Thank you. Thank you. In the next 10 minutes or so, I'm going to give you an update on how we're taking advantage of this huge opportunity that Bill and Dan have talked about in the mobile-first movement to actually be able to really redefine financial services. I'm going to discuss how consumers are engaging with PayPal's app as well as our P2P services. You'll increasingly see how we're continuing to blur the lines between the online and the physical worlds. Let me start. Bill just said then, we just recently relaunched our mobile application across the globe in 145 markets across both iOS and Android. It's been a remarkable relaunch. It was a complete re-platforming and redesign. We simplified and personalized the experience for consumers, putting the most important customer actions front and center.
You can see here on the home screen, you can see your balance, so you know where you are financially. We made being able to view your transaction history much cleaner, being able to separate out pending transactions so that you can see what's coming up next, and also made it really clear in that transaction history which funding source you used to make that purchase. We also streamlined the sign-up process, making it easier to join the PayPal franchise, and we also integrated credit into the experience, which was for the first time integrated actually into our mobile app experience. The results are speaking for themselves. Since relaunch in February, our sign-ups are up 33%, making our application a really powerful acquisition tool for new PayPal customers across the globe, 145 markets. We're seeing 14% more downloads since our relaunch.
What's actually one of the best things about the relaunch and the redesign is actually the new, better navigation is also making it easier for our customers to discover what PayPal can do for them. Customers can find We offer P2P. We offer order ahead services. Actually, since launch, our order ahead services are actually up 38%. These are remarkable results. Let's take a look at the video. That's just the beginning. In addition to sending money, receiving money, paying in store, ordering ahead, as Dan mentioned earlier, we've also integrated the ability to be able to add cash at point of sale across the U.S. In 66,000 retail stores, customers can go up to a point of sale and add cash into their PayPal account. This helps customers to digitize cash and to be able to easily shop online or pay their bills.
We're continuing also to add new features and functionality. Coming very, very soon is NFC will be added into our wallet in the U.S. and across Australia in the summer. We're also integrating Xoom into the PayPal application, giving PayPal customers, 184 million customers across the globe, the ability to have better remittance opportunities to send money to friends and family. We're adding mobile minute top-ups, which is a new service, which actually helps us to serve the needs of the more than 50% of the world's population who are still operating on prepaid mobile phones. We'll add other capabilities like bill pay and bill splitting to help consumers manage and move their money more effectively.
This new app and the new features is going to help us to drive from that two to three engagements per month, two to three engagements per week, to the two to three engagements per day. We can also deploy these capabilities using our platforms to power our partners' applications, and we can help them to meet the needs of their hundreds of millions of customers around the world. We're already working with partners around the world, but two we just recently announced are Vodafone in Europe, where we're enabling millions of users to pay with Android smartphones in restaurants and retail locations using the Vodafone Wallet. We also just recently announced a partnership with América Móvil.
With them, we're building co-branded applications, one's for Telcel in Mexico, the other Claro in Brazil, which will help us to actually serve more than 140 million customers active with Telcel and Claro, to be able to help them to be able to request to top up their mobile phones or top up their own mobile phones. Also helping them to make everyday purchases from their devices in just a few easy steps. We'll continue to support partners across the globe with our services, whether it be P2P, mobile top-up, payment solutions, we can then help to reach many more customers' needs across the globe. One of the capabilities that is actually having the most traction and has a lot of opportunity for PayPal is peer-to-peer payments. Bill Ready touched on just how powerful peer-to-peer payments is becoming with Venmo.
It's across all of our properties. Consumer habits are rapidly changing, digital P2P is fast facilitating the digitization of cash and checks. P2P payments is anticipated to grow to $174 billion by 2019. That's just in the U.S. To put some context to that's up from $5.6 billion in 2014. This is an enormous opportunity, through PayPal, Venmo, and Xoom, we offer consumer choice and flexibility, P2P is at the core of what we do. In 2015 alone, we did $41 billion in transaction volume in P2P across PayPal, Venmo, and Xoom, that's up 42% year-over-year. That $41 billion number is more than just friends and family. It also includes PayPal's goods and services P2P.
Through P2P goods and services, we are able to help millions of buyers and sellers connect across the world, providing buyers and sellers with protections, also driving incremental revenue. P2P also drives considerable engagement also helps us to acquire new customers. Consumers also sending money and keeping balance within the PayPal ecosystem, also then re-spend that balance at PayPal merchants around the world. P2P users, as Dan alluded to in his remarks earlier, are some of our most engaged users across our franchise. P2P users are actually 67% more engaged. P2P is quickly, as I said, becoming one of the most significant acquisition channels for us. We'll continue to improve and evolve our P2P services.
Just recently, we launched PayPal.Me, which allows small businesses and charities and individuals to create a URL to drop into any digital conversation, be it text, email, social network, on the web, to be able to get paid back more easily, also take that awkwardness out of requesting to be paid back. There's so much more we can do in this space. Driving solutions to help people manage and move their money is central to PayPal's consumer vision. We are actively working to support new entrants also, who are also endeavoring to drive financial participation. One example up here, actually, on the top right, is Acorns, which is a startup democratizing investment services across the world.
We recently made a small investment in Acorns and are working really closely with their leadership team to identify ways to work together to accelerate micro-investment and again, help to democratize investment services across the world. We're committed to delivering innovative and mobile solutions to help people manage and move their money less expensively and saving considerable time. With 7.7 billion mobile connections worldwide, we have a tremendous opportunity to transform and mobilize financial services. There's 2 billion adults in the world who do not have access to bank accounts, and many more who are spending considerable time and money trying to make the existing system work. In the U.S. alone, one in 13 households do not have a bank account and are entirely underserved, and in so many other markets across the world, mobile technology can help us, and will help us reimagine money to better serve everyone.
PayPal has a fantastic head start in payment innovation, and we will continue to be at the head of the curve. We have a very clear vision, powerful platforms, hundreds of millions of users, and a brand that was built on trust and security, in particular as it relates to personal financial information. This helps power that flywheel effect that Bill and Dan both talked about earlier, bringing this two-sided network together and connecting 170 million customers, consumers with 14 million merchants around the world. We've talked a little bit of more detail about PayPal and our mobile solutions. We've talked a little bit about Venmo. Now I'd like to introduce John to talk a little bit more about Xoom.
People come to this country to work hard. Their priority is to earn money and send as much of it home as possible to help the ones they left behind. At Xoom, a PayPal service, we work tirelessly to provide fast and affordable ways to move money so that all immigrants can send money, pay bills internationally, and reload mobile phones for their friends and family around the world, bringing them closer.
Use Xoom for me to send money to my mom is like I were giving it to her myself. My mom gave me life, and I am returning a little bit of what she gave me.
Leaving parents behind is definitely a very hard thing. I feel like Xoom has narrowed the gap between us.
Last time when my parents came to the United States, it was when my son was born. I really wanted them to come. I immediately used Xoom. I transferred money at 12:30, they instantly got it. The next morning, they booked their tickets.
Right then, it tells you step by step what you need to do.
Thank you. We are proud to be part of the PayPal family. Xoom, the easiest way to send money worldwide.
All right. Good morning, everyone. I'm so excited to be here, especially after listening to all that, which I've heard many times before. Just gets me so excited. I'm here to tell you about Xoom's role in PayPal's future. We intend on dramatically increasing the reach of PayPal and reinforcing our shared vision to bring more financial services to more markets, and importantly, incremental markets. The opportunity is very, very large. As you can see here, $600 billion moves cross-border every year in the remittances space. That's just a lot of money. To the countries that receive these flows of money, they're absolutely vital to their economy. Often, it's the single largest contributor to GDP. To the people, the individuals who are sending or receiving money, this is very emotional. As Bill pointed out in his talk, our customers in the U.S. are primarily first-generation immigrants.
They've moved here to gain better opportunity, but they've also moved here with the social contract to send money back home to the loved ones that they've left behind, mom and dad, sister, brother, sometimes even spouse and kids. We're talking about maintaining lives and sometimes sustaining lives. Basic necessities, like putting food on the table, keeping the water running, putting electricity in the home, making sure our family has shelter. Taking care of the financial obligations of the family unit back home is one of the primary objectives, one of the emotional objectives of our consumers. Most of this business is served by offline money transfer companies, which are hard to use, hard to access, and sometimes expensive. Well, Xoom revolutionized this business when we were founded 15 years ago as the first all-digital money transfer company. We haven't stopped innovating since.
Like PayPal, you heard all about mobile and how it's transforming the world. It's true in remittances as well. We are now a mobile-first money transfer company, clearly the leader in mobile money transfer, with more than two-thirds of our transactions originating from a mobile device. Folks, that just makes sense because I pull this out of my pocket, I log in with my thumbprint, I press one button, mom, in seconds, has her money. I could be on the construction site, in the restaurant. I could be on my 12-hour shift at the hospital. I could be on the bus. I could be on my couch. Seconds later, mom has money. That's why people use our mobile service so frequently. We don't just pay cash. You heard about being the consumer champion, giving the customers choice. We do the same thing at Xoom.
We can send cash. That's what everyone else does in the business. We also put money directly into bank accounts. We pay bills. We reload phones. We do this, importantly, at speed. One of the cornerstones of Xoom's value proposition is instant. You want your money right away. We're going to give you your money right away. We do that in part because we have relationships with the world's largest financial institutions, retailers, and mobile wallets. As evidenced here, we're about to start putting money in M-PESA wallets in Kenya. We're partnered with the largest bank in the Philippines, the largest retailer in Mexico. This is true for every market we serve. We go in, we partner with the best. We can deliver the best value proposition to our consumers.
Some of you have asked me out there, "How's it going with the PayPal integration?" I'm going to go on record and say it's going fantastic. It's really going great. We are able to take advantage of this global footprint at PayPal existing in more than 200 markets, giving us the confidence to grow our receive markets in just six months from 39 to over 50 markets. We have the confidence to start working on more send markets. We're going to take that amazing global asset. It's going to help us get to Canada, U.K., Europe, Australia, and other send markets as well. We're going to give those 1.6 million loyal customers an even better experience. They're so loyal, by the way, that in any given period, more than 90% of our volume is from repeat customers.
That's because we have the best service with the best ways to pay out money, the fastest ways to pay out money, and soon on a global scale. Let's talk a little bit about where we are right now. 1.6 million customers can send money to mom and dad, brother, sister, spouse. You can send cash, put money into bank accounts, pay bills, reload phones. We're not going to stop there. I want to tell you a little story. I was in Mexico a couple of weeks ago in a large retailer. They transact millions of transactions per week. They do all of these things. They pay out for healthcare. They allow you to buy insurance. They allow you to pay off layaway plans. Now, these customers stand in line, and I got to watch them, between 10 and 20 at a time all day long.
You guys stand in line probably every week to fly, right? Well, we can't digitize the TSA, I'm sorry, but we can digitize these payments and bring real convenience to millions of consumers in our markets for the very first time who have to stand in line, walk up with cash just to keep their water running. Walk up with cash, I saw a $300 mortgage payment made just to pay their mortgage. You stand in line every week for your job. These people stand in line every week to live. We're going to deliver democratization to them in ways that will deliver such great convenience and benefit to them. We're really excited about this. Now, very soon, we're going to have our own requesting experience available to beneficiaries. They will be able to use a software experience on their phones.
Instead of staying in that line, you're just going to roll in Xoom on that phone and ask your loved one for money. Not just cash, but all of the services that we make available so that you don't have to stand in line anymore. We can deliver freedom to these people, convenience, put time back in their day. That is what we intend to do. As we're building this more robust sending experience with this robust receiving experience and knowing that the PayPal wallet, that wonderful PayPal wallet, is at the center of all of this, we will now be able to let people control how they spend their money.
If I send $300 to my sister in Mexico, she'd be able to direct $100 of it out to cash, $50 out of it to a bill, maybe $200 over to the PayPal wallet so she can shop online with a PayPal merchant for the first time. Giving consumers flexibility and choice through convenience, that's what we intend to do. This delivers a send, request, spend vision for Xoom and PayPal. It delivers the proof in this vision of why we're so excited at Xoom. I can tell you, all of our employees, super excited because of that shared vision. We are going to bring digital services to mass markets for the first time and bring them true value and bring PayPal incremental synergies. With that, I'll say thank you and invite Gabrielle back up on the stage.
Thanks, John. That was incredible. It's now time for our 15-minute break. We'll return at 10:35 A.M. Thanks. Okay, well, welcome back from the break. I'd now like to introduce Steve Allocca, who's going to discuss our credit business. Thank you.
Thanks, Gabrielle. Welcome back from the break. I'm going to talk to you about credit at PayPal. As my colleagues described, PayPal is providing the leading experiences that are driving engagement with both consumers and merchants. Like all the great products and experiences that you heard about before the break, credit is yet another example of leveraging both sides of this incredibly powerful network that Dan described. Credit is a core capability that differentiates PayPal from rival payment processors and drives greater engagement for both consumers and merchants. Much like John talked about how he and his team at Xoom are thinking differently about remittance, we are similarly thinking differently about credit. We have a unique opportunity at PayPal to personalize and simplify and demystify something that is inherently complex, confusing, and very impersonal today. That's the way that we think differently about credit.
We are not in the credit business to drive traditional credit economics. We're doing this to add value to our customers by making credit simpler, safer, and smarter. Let me show you how. Question I get oftentimes first from people is, what exactly is credit at PayPal? Credit at PayPal today is primarily three products. The first is PayPal Credit. It's an online line of credit provided mostly through PayPal merchants as a way to allow their customers to pay over time for their purchases with PayPal. The second is a credit card that we provide to consumers in partnership with Synchrony. The third, PayPal Working Capital, is a business loan that we provide to PayPal small and medium-sized sellers who have an urgent need for capital to grow their business that they're not getting effectively or efficiently from banks or other lending providers today.
That helps you understand what credit is at PayPal, maybe the only question I get more frequently than what exactly is credit at PayPal is, tell me why exactly PayPal is in the credit business. Let me start answering that question by telling you why PayPal is not in the credit business. PayPal is not in the credit business for the sake of credit economics. PayPal is not in the credit business to drive interest and fees, which is the model for most players in the traditional credit business. We're in the credit business because we see a unique opportunity, as Dan described, to democratize the movement and management of money, of which credit is a key part.
That opportunity is so unique that we think that we can provide compelling examples of providing simpler, safer, and smarter ways for customers to access credit, both consumers and merchants. Why is it that credit is so strategic to PayPal, if not for credit economics? It's primarily for three reasons. It differentiates. Through credit, we can differentiate PayPal from rival payment processors. Credit can also drive engagement for consumers and drive engagement for merchants in this incredibly powerful two-sided network that Dan and Bill and my other colleagues described prior to break. Let me give a few examples for the first one. What exactly do I mean by credit helping to differentiate PayPal from rival payment processors?
Credit is increasingly the hook that gets our merchant customers in the door at PayPal, because merchants know that by offering PayPal Credit, they can actually drive incremental sales and grow their business. That's probably not really surprising. What might be more surprising than that is the value of our business lending product to our smaller and medium-sized merchants, and to small and medium-sized merchants in general. Fully one-third of non-PayPal small and medium-sized merchants tell us that they would switch their payment processing business today to PayPal solely to get access to PayPal Working Capital. It gives you some idea of the value of that product in the landscape today, and it helps to illustrate what I mean by differentiating, using credit to help to differentiate PayPal from rival payment processors.
In addition to differentiating, credit's also a powerful lever to drive engagement by consumer, PayPal's consumer customers on the PayPal network. Let me give you a couple of examples to help illustrate what I mean by that. New PayPal customers who adopt credit spend twice as much on the PayPal network as new PayPal customers who don't adopt one of our credit offerings. PayPal customers who adopt credit transact at 73% more merchants in the PayPal network than PayPal customers who do not adopt one of our credit offerings. This is not true just for PayPal Credit. It's also true for the credit card product that I mentioned earlier that we provide in partnership with Synchrony.
When a PayPal customer adopts either PayPal Credit or the PayPal credit card, their total purchase volume with PayPal goes up by more than 35% subsequent to that adoption. Hopefully that gives you some idea, a couple of examples that help to crystallize what I mean by using credit as a lever to drive engagement for our consumers in the PayPal network. The third reason why credit is so strategic to PayPal is because just like driving engagement on the consumer side, we see that credit also drives engagement on the merchant side. It's because we're providing those really unique, really different experiences with credit through merchants, that what we're seeing is merchants who offer PayPal Credit on their stores see sales go up as measured by TPV by 20% or 30%.
Similarly, when we provide PayPal Working Capital, that business loan product to our small and medium-sized merchants, we see that a PayPal merchant who adopts that PayPal Working Capital product has their attrition cut literally in half. It's not high to begin with. Only about 6% of our small and medium-sized merchants end up leaving us on an annual basis. That attrition rate is cut in half when they adopt PayPal Working Capital. We see that customers who adopt that PayPal Working Capital product, a full 90% of them reapply and take a subsequent PayPal Working Capital product after paying down their first loan. Hopefully that gives you an idea of what I mean by driving engagement for both consumers and merchants in this incredibly powerful two-sided network that you're hearing so much about this morning. You've seen that PayPal Credit has grown impressively.
I think this is evidence to support how much these credit solutions and offerings that we're offering, that we're providing to PayPal customers are resonating with PayPal consumers and merchant customers. The numbers on this chart represent 33% CAGR since PayPal bought Bill Me Later in 2008. I think that provides evidence of the way that these credit solutions are resonating with PayPal's consumer and merchant customers. For the reasons that I described earlier and the way we're thinking differently about credit and the credit business model, you can imagine that we are as excited as ever about continuing this great growth story. The prospects to do that in the way that, as Dan and Bill and my other colleagues described, helps to democratize money and think very differently about credit, are immense.
I also want to put this in some perspective because it hasn't been that long since 2008 and 2009, and the credit crisis that we all remember well. I want to allay some of the concerns that I've heard about credit's growth relative to PayPal. This is a credit business, and first and foremost, we are going to grow this business responsibly and in a way that's measured. It's the most important thing to take away when you talk about, in any way, shape, or form, credit's growth at PayPal. I also want to put it in context. The credit business today at PayPal is less than 10% of PayPal's revenue. At current rates of growth, it would be at least another decade before the PayPal Credit business was 20% even of PayPal's revenue.
Increasingly, going forward, we're funding the credit business to generate all of that great ecosystem goodness that I described before in ways that are increasingly asset light. We're going to continue to use a mix of capital from both internal and external sources. This started in 2014 with changing our partner bank and having our partner bank participate in some of the receivables. Last year, in the second quarter of last year, we did a nearly three-quarter of a billion dollar participation interest with a couple of investors. Most recently, in the second quarter, we announced the use of our FBO balances to fund some of our credit growth in Europe, our European credit growth. It gives you some example of the things that we're doing to increasingly fund that credit growth in a way that's asset light, that's off of our balance sheet.
In addition to diversifying our funding sources in that way, the thing that I'm the most excited about in terms of growing credit in a way that's asset light is what we can do through partners. What I'm talking about here are the kind of innovative partnership arrangements, like what we've done with Synchrony, that allow us to focus on the things that differentiate us the most. One of the most unique differentiators we have at PayPal is the data that we have about our customers and the risk management capabilities that Dan referenced earlier this morning. When you combine that with the PayPal brand, the trusted brand that we have with our customers, and the digital and mobile experiences that we're designing, that can integrate a simpler, safer, smarter way to think about credit into an integrated, seamless PayPal experience for merchants and consumers.
That's incredibly valuable to partners like Synchrony, like other financial institutions that have balance sheet and capabilities that we don't need to replicate by building in-house. By thinking differently about partnerships in that way, we get the best of both worlds. I think one of the biggest, if not the biggest game-changing differentiator of all is what we can do with our data, what we can observe about the way customers behave with us through their interactions at PayPal on both the consumer and the merchant side, and what they're willing to share with us because of that trusted relationship, because of those magical moments that Bill described.
Our ability to take that data and turn that into real intelligence and the assessment of our customers' risk is, I think, one of the biggest game-changer opportunities that touches every part of what we want to do in continuing to provide different experiences that democratize the management and movement of money at PayPal, and particularly through credit. When Bill talks about the secret sauce of Venmo being the magical experiences, the secret sauce when we talk about credit is really the ability to use our data and our risk capabilities, turbocharged by partnering with financial institutions that covet that. No better transition when we're talking about that secret sauce than to my colleague and great friend who really is one of the very best minds in the business when it comes to risk management and the use of data that I'm describing.
To hear more about that, let me turn it over to my colleague and good friend, Tomer Barel.
Thank you, Steve. I guess after this, we could just skip my session and move on to save some time. As Steve pointed out, it is PayPal's unique capabilities in risk management that make it possible for us to offer to our customers, merchants, and consumers unparalleled credit products. In that sense, credit is no different than the rest of our business. You may think about risk management as merely managing losses. In fact, for us, as Steve said already, risk is the secret sauce that enables us to grow our business sustainably, to serve our customers as true customer champions while taking risks nobody else can take. Risk is at the core of our value proposition. First and foremost, it is what makes our ecosystem safe. It is what makes our customers trust us with their money, with their financial and personal details, and trust each other.
Indeed, PayPal has been repeatedly regarded as one of the most trusted brands in the payments industry. At the same time, robust risk management is what enables us to make it easy for our customers to use us. We already mentioned earlier this morning, One Touch, essentially the ability of customers to use our product without logging in, without entering username and password. That relies on robust risk management. Another example is the onboarding of new customers. The sign-up process in PayPal is very swift, easy. You just feed in a few simple details, and most importantly, you can transact immediately afterwards with no delay. Sell stuff, buy stuff, send money. Once again, that relies on robust risk management.
We support these core tenets of our value proposition, trust and ease of use, while maintaining loss levels of between 27 and 31 basis points of our total payment volume, and that figure combines losses associated with both the credit and payments products. We believe these are among the lowest loss levels in the comparable industry. Of course, reducing losses in itself is easy if you don't care about the impact on good customers. We certainly do care, and care a lot. We dedicate most of our energy and resources into reducing the impact on good customers, into increasing the accuracy of our risk models and decisions. We have recently the best false positive ratios for our risk decisions in our history. Once again, we believe it's among the best in the industry. This is not to say that we don't make mistakes.
We review, assess, and make decisions on 15 million transactions per day, make all these decisions instantaneously, we do make mistakes. Making risk decisions that impact good customers or not preventing fraud from happening to them. Unlike other providers of digital payment services, we view the experience of customers when they go through such a bad event as core to our responsibility, as core to the overall customer experience that we owe them. We have one of the most expansive protection policies in the industry, protecting both buyers and sellers from the financial losses associated with bad events. We complement this policy with the 8,000 service professionals that we have available worldwide, 24 by seven, that are there to hand-hold customers when they go through these bad events and make sure that the experience is right, that they're not only made whole, but also get the right treatment.
What are the things that make it possible for us to get to these outcomes? What are the differentiators of PayPal risk management that bring us to this balance of low losses, high accuracy, best customer experience, sustainable growth? The first thing I'll mention is our platform. Unlike most financial services companies, we have built our own in-house, end-to-end platform for risk management. From data processing all the way to decisioning, including data sciences, analytics, tools, everything in-house. Initially, we did that out of necessity. There was just no platform that was a good fit to what we do in PayPal out there. Over the years, this has become a true source of competitive advantage for us because this platform allows for unprecedented level of customization. Customization of our risk decisions to our customers, to our global footprint, to our unique products.
Fed into this platform that we've built, we have a data set that is not only massive but also exceptionally rich. We have the data generated by the 15 million transactions per day that the 184 million active accounts generate. Of course, we have the whole history of data, including those by inactive accounts that we have on our file. We collect data from a very diverse geography, the 200-plus markets that we operate in. We collect data on both sides of the transaction, being a two-sided network, from consumers and sellers, from senders and receivers of money. The type of data that we collect is very diverse. It's not only what we call offline data, the data that the user fed to us, the name, the address, the phone, et cetera.
It's also many, many types of online data elements, many of which you think about or wouldn't think about. Of course, the simple things like IP address, but also things around browser type, browser language, and the mobile space device fingerprint, the device type, location, et cetera. A long, long, long list. This rich data set allows us to get to the accuracy levels that we aspire to using this unique platform that we have. Another thing that these two things, the platform and the data combined, allow us is to attract the best data scientists out there because this combination, a platform that is really great to use, a rich data set, and a place where they can really generate significant impact on the business, is a truly unique combination.
We are able to have built truly a state-of-the-art data sciences practice in PayPal that leverages any technique that is out there in the big data space for risk management and driving this accuracy through continuous innovation. This is while other financial services companies still typically use traditional statistical modeling, logistic regression, et cetera. It makes a big difference. Even that is not sufficient for us. We strive for accuracy that we believe can be achieved only by complementing the insights that big data generates, big data crunching that generates what we call top-down, complementing it by human insights. At the end of the day, we're talking about human behavior, and humans are still best equipped to get to the right human insights about the behavior of others.
We dedicate a lot of effort into what we call a story-based approach to get the highest level of accuracy. I'll try and illustrate this point through an example. Let's say we have Dan here with an American account in good standing still at this moment, and we have a transaction attempt from Dan's account coming from an IP range in Bangkok, Thailand. We need to make an instantaneous decision what to do with this transaction. Many financial services companies would either decline this transaction altogether because it's too high risk, it may not be Dan, or challenge Dan to prove it to us that this is indeed Dan, either by texting him, well, his mobile phone may or may not accept texts in Thailand, or by calling him, and this could be in the middle of the night, not great experience for Dan.
What big data allows us is to leverage, first of all, the full account history in making this decision. For example, we could find that three years ago, Dan made a successful transaction from that same IP range from Thailand. Well, it means that he probably visited there in the past, the transaction is far less risky. We could look at the whole data that we hold. For example, we could find out that from that IP range, we have many, many foreigners making successful transactions. This probably means this is a hotel in Bangkok. Again, the riskiness of the transaction goes down. We nail it through the human insight around how Dan would behave leading to this transaction attempt.
For example, we would look to see whether he was actually logging in to his PayPal app while staying in the San Francisco Airport or any other airport a few days earlier. Well, that signifies the fact that he actually traveled. We would look for reservations that he made in the last three months. If we find a reservation to a hotel in Thailand, once again, this proves that this is indeed Dan. To summarize, we have a unique combination of a rich and massive data set being used on a proprietary end-to-end platform and a top-notch data sciences practice. This combination leads to risk management being a key competitive advantage for PayPal, allowing us to get financial leverage, sustainable growth, and most important, drive exceptional customer experience. Now back to Bill Ready.
Really, really insightful how Tomer thinks about risk, it really is a great enabler of the things that we do here. Many people think about risk as sort of defense systems, it's offense here too, right? That Tomer mentioned One Touch and all these great new experiences that we're doing, it's because we have these great risk systems that let us authenticate users in ways that others couldn't dream of, that is such a great enabler for us. As we talk about tokenization, sort of new buzzword in the industry, which interestingly is quite an old concept. PayPal's been tokenizing instruments since literally its inception almost. In fact, PayPal has more than 1 billion tokenized financial instruments on file, going all the way back to starting with the first financial instrument being tokenized in 1999.
This concept's been around for quite a long time. The reason it's become topic of conversation of late is that others are now starting to say, "Oh, we could do some things with tokenization too." Welcome to the party. It's great. There's a lot of interesting things that can be enabled with tokenization. At the same time, it's really important that you think about, well, what are all the things that go around that? Because at the end of the day, when you think about what is tokenization, at its most fundamental level, like you all can pull out the cards in your wallet and see the 16-digit number on the front of your card. At the most fundamental level, a token is just another 16-digit number, just like the one on your card, that is of limited use.
There's a couple other things that go with it, cryptograms and these kinds of things that help to secure it. Really, it's around a limited use representation of the financial instruments you already had. This concept's been around for a long time. As you now have others starting to participate, it opens up some opportunities. While tokenization has been a core of how PayPal has delivered value for many, many years, in terms of how we make it so that people can shop without sharing, that we tokenize those transactions so that the people aren't sharing underlying financial instruments. As others now participate in this, it opens up great opportunities that you can think about that as ways that we will bring new experiences to PayPal. How can we think about PayPal moving into the store?
How can we think about PayPal being accepted at merchants where PayPal is not accepted today? Network-level tokens and these types of things open up those opportunities. Importantly, what doesn't it do? Talking about this on the heels of what Tomer shared with risk, as tokenization first came out and you had many players starting to experiment with tokenization, it's not a silver bullet. In fact, many of the first attempts at using tokenization, particularly recently, they actually became on-ramps for fraudsters that, okay, yes, it was secure, but if you had a stolen card, oh, great, you didn't need to go print a physical card now. You could just go use a tokenized representation of that, and actually lots of industry reports around this kind of stuff that it became on-ramp for fraudsters.
I mention that to say the things you wrap around it are really important, and that's where you look at the experiences that you can wrap around tokenization. PayPal is still quite unique in the two-sided network, the risk capabilities we have, the experiences we can light up. Tokenization has always been at our core. It's a core competency for us. As we see others start to participate there, it really is a fantastic thing because it actually opens up experiences that we can provide that are enabled by that tokenization, but that others would have a really hard time providing because they don't have the two-sided global network, or the inherent risk capabilities of those types of things. A few examples of that. We talked about Pay with Venmo before. That's running on top of network-level tokenization.
You look at some of the partnerships that we have. We recently announced working inside of the Vodafone Wallet in Europe, that's powered by PayPal, also leveraging Visa tokens, right? There's an example of how you look at onboarding experiences where PayPal is solving the ease of use for the onboarding, solving risk and fraud and those kinds of things of how these things come on. A Visa token allowing for that transaction to happen at many merchant locations. That's an example of how it's a useful tool, particularly when embedded in the two-sided network and the broader set of capabilities that PayPal has. In fact, it's opening up more and more partnerships for us and removing conflict in a lot of ways.
When you think about the other players in the ecosystem, we've talked a lot about how we partner with others, but when you think about card networks and issuers and acquirers and the other participants in this ecosystem, tokens actually give us a common way to interact with many of those players. We've been great partners with many of those players up to this point, it gives us even more ways to work with those players and to invite them into the experiences that we're creating. It removes a lot of friction in that way and opens up things like the Vodafone experience.
We'll come back and talk more about what we're doing with Facebook and Pinterest and some of the others that are out there, where we're taking our own tokenization services and leveraging other token services that are coming in to really light up great new experiences. It's really, really important because we talked about commerce moving into new contexts, we think that this is a really important part of how PayPal enables many of these new experiences that will happen in new contexts. It's another arrow in the quiver for how we can help a consumer and a merchant meet one another in an entirely new context and have a great transaction, a low-friction transaction, that's safe and secure because of all the other things we can wrap around it.
With that, I'm going to transition over to Juan Benitez, GM and CTO of Braintree, to talk more about the evolution of commerce. Thanks, Juan.
Hi, everyone. Myself and the entire Braintree team couldn't be more excited to be participating today and with our mission here at PayPal. Also with the exciting mission we have supporting all the merchants that we have on our platform. It's especially exciting in a time when there is so much innovation happening in the space, and frankly, the rate of innovation is increasing every single day. We saw this slide earlier, and Bill was just talking about all the new contexts that are happening. We spent a lot of time today talking about how big a shift mobile has been in the last three, five, seven years. There's another one coming, and that's that one here for 2016 that's evolving very rapidly. This is social and new contexts in commerce, in what we call contextual commerce.
We think it will have the same type of impact on the industry in the next three to five years as mobile has had in the past three to five years. We're investing heavily to try to be part of that and hopefully help drive a lot of the innovation that our partners and merchants and consumers will enjoy in all this. Before we talk about some of the platforms and things we're doing, let's take a step back and really talk about what is contextual commerce and what does it mean. Today, traditionally, merchants will engage in a discovery process and advertisement process that many of you will be familiar with. We all see it and click on ads every day. Offers are out there, products are out there, they're on search sites, they're on blog sites, there's display ads.
When a consumer is on a platform such as one of those sites or a social networking site, and they want to transact on an offer they see and purchase something they see, the purchase process gets shoved behind a few interactions. Clicking on that link, a redirect to some other site. Hopefully, fingers crossed, good deep linking to actually land you on the product that you were hoping to actually engage with and purchase. The whole purchase process starts. In a world where time is more precious, transactions are more complicated, we're all looking for fast action on our mobile devices, heading to meetings and from a train, we have this process there that just really may not need to be there anymore.
That's really what we see evolving, where this notion of redirecting off of a place where a consumer is spending their time and then going to the merchant site to actually purchase the product or the service or transact, that's no longer going to be necessary in the years ahead. Those transactions will occur directly wherever the consumer is spending that time, whether it's a blog site or a social site, a messaging platform, a search results page. We're very convinced that this is the future wave of innovation that's coming in commerce. Many of our partners and many significant players in the ecosystem are also innovating around this in the prior few months and this year. This is one of the few cases where I think the innovation will happen so quickly because every single participant in this ecosystem benefits.
If this works and the consumer no longer has to be redirected and hopefully deep linked to the right product, the consumer wins with a faster, easier purchase process that we're all looking for. The merchant also wins. No longer do I have to think about how to pull people to my site or to my app to see my products. I have the ability to actually have my product visible and actionable on totally different sites. I've extended my storefront. I've extended my website or app to where consumers are spending their time. That's really exciting. I don't have to worry about just getting clicks anymore. I'm actually engaged and integrated into these platforms.
Finally, for those platforms and search result pages and messaging sites and blogs, they don't want all their customers that they've worked hard to acquire just redirecting to other places and losing engagement with them. They want them to stay right where they are, right on their platform. All three of these players, the consumer, the merchant, and the platform where the consumer is spending their time, generally usually an advertising platform, has a lot to gain in all this innovation that's happening. We think that will help fuel faster innovation since they're all aligned and will hopefully win in this process. How do we make some of these things happen? It's very early days, but we're building a set of different tools across both the Braintree platform and core aspects of the PayPal stack to ensure that we can help fuel these experiences.
For us, retailer tools is a big part of that, so we're thinking across the different spectrum of constituencies here. With 14 million merchants globally, we have a great opportunity to provide tools that will be very differentiating, that will help democratize access to these amazing contextual experiences for small retailers around the world. That would be highly beneficial to them growing their businesses, and it's also a deeper way for us to engage with them. Not just payments and all the things we can do today for them that you've heard today, but also helping them get more orders, more engagement, even more consumer activity than we can bring them today. On the platform side, we can do really, really powerful things that are pretty unique in the industry in terms of what we can do to fuel these experiences in some of the most powerful ways.
Some of you would see some demos today out in the hallway, we'll show you some examples here of what we can do with these capabilities. All that is built on the foundation that we have across the technology tools we have here at PayPal, including tokenization that Bill just talked about. Those tools also help us make sure that for all this goodness we're giving on the merchant side and to these platforms, we can also make sure the consumers have a great purchasing experience, including paying with PayPal and all these contextual experiences, even if the merchant whose product is on that site does not accept PayPal. For our retailer tools, we have basically built a conduit, if you will, that will connect up with wherever the small retailer is managing their current products or goods.
We'll make it very easy for them to continue to manage there, but make those products available to be sold in other forms and other new contexts that they're not currently in. This is where we help them reach new consumers through a variety of different new media. Here are some examples. Today, we have the capability through what we launched with PayPal Commerce, which was a follow-on from the acquisition of Modest that we did last year, to let small retailers have access to create buy buttons that could be used in websites, in mobile app experiences, or in native apps themselves, in addition to mobile web. They can have their products be able to be immediately actionable or bought within any of those contexts. The last one is one that I find especially exciting as well. We all have tons and tons of email offers.
It's still one of the dominant ways of engaging between merchant and consumers today. We all have dozens of these offers in our inbox right now, and probably thousands more in various spam folders. There are many that we all want to action on. Yet you have to click on the link, be redirected, go to a site, then begin the purchase process. It would be much more compelling, as a consumer, I also want to be able to purchase directly from the email. Let me just buy that product. I want to go do it. Make it easier. We have the tools to make that happen. An immediate purchase process immediately actionable from clicking the link in the email.
We'll also be investing in what we call our channel tools and APIs, making it so that the products that merchants want to get out to these sites can be easily exposed across a variety of different platforms, mobile and otherwise, because those platforms want to have access to these products to have that stronger engagement with their network as well and consumers on their site. Across those retailer tools, we can also do really exciting things with significant platforms. I'll talk about two examples. The first is what we did last year with Pinterest, a site that garners tremendous amount of engagement and interest from consumers browsing products and goods. Previously, you used to have to be able to redirect, like we talked about, onto some other site.
Well, with the announcement last year, Pinterest Buyable Pins, consumers can transact immediately on the goods that merchants make available on Pinterest site directly. When that launched, our capabilities, in the Braintree platform, allowed us to support four of the five merchants that went live with Buyable Pins, including Neiman Marcus and Nordstrom, which we're very happy to engage in. There are also new emerging examples, and messaging is a very big part of that. Today, more than 900 million consumers and 50 million merchants engage on Facebook Messenger. A tremendous amount of engagement in commerce is happening on this platform. Last December, one of the most interesting experiences we've recently seen came live on Facebook Messenger, where you're able to directly book an Uber ride directly from Facebook Messenger without leaving the Facebook Messenger experience, all driven on contextual input about the conversation that was happening.
Let me give you an example of that, and let's play the video so you can see it. Everything you're seeing here is happening directly within Facebook Messenger, where a platform of Facebook size and, of course, of Uber size and their global reach both want to connect in new ways to have new utility to each of their customers. A highly integrated experience all directly there within Facebook Messenger, back from Uber. The most complicated part of making this happen? The exchange of payment information and payment data, and that's what we take care of. This is still, as exciting as that is, very early days.
There's lots of innovation to come, and our platforms and investments, we hope, will help us be a significant participant in that and help enable consumers to pay with PayPal or whatever's the best way to pay, merchants to be able to participate, no matter what size of merchant you are, and all those platforms to have really successful experiences on their platforms and the engagement that that will drive. Thank you all very much. With that, I'll hand back over to Bill to talk about more of our partnerships.
All right. We're going to talk a little bit about how we innovate at global scale, and we're going to talk through some of our platforms, those kinds of things. Bear with me. I'm not going to nerd out on you too much, but it's really important in terms of how we go deliver really rapid iteration as we approach a very complex, very rapidly evolving landscape. How do we work with the many, many different partners that are also participating in that rapidly evolving landscape.
First of all, when you think about the platform that we offer, we've talked about several of these components today around it's not just sort of core payment services, it's risk and identity and credit and all these things we wrap around those services that are part of how we bring the two-sided network together, how we enable transactions that nobody else could, how we enable that seamless experience that Juan showed, that you can be inside of Messenger and call an Uber, have the payment happen, and never leave the Messenger app, but all the payment information just transacted seamlessly, securely. It's this kind of platform that lets us go enable those things, lets us go do things like One Touch at global scale or roll out a new consumer app to 140-plus markets in a single day.
It's because of the integrated platform across all these things we can do that. As we have re-architected that platform over the last several years, PayPal, in the world of financial services, PayPal is in its infancy. In the world of technology companies, PayPal's been around for 16-plus years, you have some re-platforming to do. We've talked about that publicly. We've been through a lot of that re-platforming, but we've moved to great developer experiences. We've moved to service-oriented architecture. We've moved to agile software development, all these things that make it so that as we have these great capabilities and this great two-sided network, we can iterate really, really quickly at a pace that's very hard for others to match.
In fact, just thinking about the scale of those platforms and the things that we can do and what we're bringing to bear, just a few stats for you. We've talked about our overall sort of payment volume, things like that, 1.43 billion payments just in Q4 of last year. Our peak second, we're doing over 1,000 payments a second in our peak second, right? You think about just the sheer magnitude of that and how much of the world's e-commerce is happening when every single second that goes by, you're pounding 1,000 transactions. Underneath all that, 4.7 trillion database calls that happen from that, 2,700 network devices. Data, we talked about how we're moving into these contextually driven experiences and how important data is to make sure it's the right consumer that's actually trying to transact with that merchant to be able to authenticate them securely.
18 terabytes of data processed daily. All this around where are these consumers transacting from. Tomer gave you this great example of how do we know that somebody is really transacting from Bangkok or not? Where are all the places they've been? Where have they logged in? It's the 18 terabytes of data that we see daily that feeds into this great engine that lets us go do decisioning across these things. As you think about that scale, you would say, "Well, hey, most other players that operate at that scale," you think about the traditional financial services industry, you're talking about quarterly release cycles, right? That code pushes happen once a quarter, maybe once a month. In Q4, we did 20,000-plus code deployments in Q4, in a single quarter. We have developers deploying code multiple times a day.
When you think about this amazing two-sided network of consumers and merchants around the world, the rapid iteration that it takes to go evolve the experiences that they're demanding as they move to mobile as a primary computing device, we get many, many more at-bats than others, right? This is an important concept. You think in baseball, if you hit three times and strike out seven, you're in the Hall of Fame, right? Three out of 10, Hall of Fame. In the world of building mobile experiences and venture capital, you hit one out of 10, you're in the Hall of Fame. Really getting a lot of at-bats matters a lot. Figuring out what are those right customer interactions, you need many, many, many iterations.
When we deploy 20,000 times in a quarter, many, many times a day, we have a far greater number of at-bats than when you think about legacy financial infrastructure that deploys once a quarter, once a month. You're just not getting enough at-bats to find those right experiences. That is structural advantage relative to what you see in legacy sort of financial services world. To be able to go iterate quickly on both sides of the network, that because we can control the experiences on both sides, we get those at-bats without having to go ask consumers to go do work, without having to ask merchants to go do work. We're constantly running multiple tests simultaneously without having to ask people to do different integrations or those kinds of things. We get just many, many, many more at-bats.
As we're going through a rapid evolution in the landscape, it's going to take many at-bats to figure that out, and we just get far more of them because of the way that we've architected, because we've moved to agile-style software development, because we have rearchitected our platforms in a way that we can deploy globally all at once. That's a real structural advantage that lets us take our two-sided network and bring that to bear in ways that others just never could. What's that lead to? As we think about the landscape and the other participants, there's a reason that you're seeing us really, really partnering with some of the leading players in the space, right?
Big difference between sort of the PayPal today versus how you would've thought about PayPal in the past, that PayPal has, from its inception, had a lot of the end-to-end and being able to see the transaction the whole way through. For a lot of that, it was sort of closed, right? It wasn't opened up to partners necessarily. It was opened up to consumers. It was opened up to merchants, but maybe not as much to partners. We've started to open that up, that the service-oriented architecture and things like that that we have moved to, it's not just for internal consumption. It's making it so that we can work with many, many other partners in the ecosystem.
I mentioned the Vodafone example earlier, where for tap-to-pay transactions on Vodafone, the Vodafone Wallet, PayPal powering that, making it sort of seamless to sign up for that, and then partnering with Visa for the tokenization services underneath. We see similar things across Juan brought up one of the examples of Facebook, but we're partnered with Facebook across many experiences. Apple and Google, I mentioned that both of those, we were powering approximately half or more of the apps at launch of Apple Pay and Android Pay, which by the way, Google at I/O this morning talked about launching in the U.K. Many of those experiences for Android Pay's launch in the U.K., running on top of our Braintree platform, things like Hotel Tonight and YPlan, some of the marquee apps there, running on the Braintree platform.
Along with those services, there's also the fact that we were recently added into Google Play as a payment method. Alibaba, that we've recently started to work with, pilot program still for B2B, but starting to work with many, many other partners in the space. The reason we're doing so is that there are going to be many participants as you have this sort of rewiring of commerce, but those participants are all looking and seeing that PayPal touches far more of the end-to-end than anybody else. Because we're willing to let others in, because we're willing to say, "Well, we'll power much of it, but we don't have to power all of it. We can partner with others for these things, enable great experiences," you're seeing many, many players wanting to work with us and build on our platform.
It really brings me to sort of how do we think about where we go from here, right? We've talked about Dan sort of set out the expansive vision for how we want to be the operating system for commerce for our merchants, how we want to be part of the daily life of our consumers and really sort of rethink financial services, democratize access to those things for billions of consumers, letting them fulfill hopes and dreams. We see the beginnings of that. In some places, the most expansive elements of that vision, we're sort of in the earliest days with those, but we see the beginnings of that, like with Venmo, where users are engaging daily.
Across all that, as we think about this rewiring of commerce, this move to mobile, consumers really thinking about what do they want to use as part of how they acquire these different services, there's going to be many participants. There is no one player. As much as we have touted how much we can bring to bear for consumers, for merchants, for the ecosystem, there are going to be many participants. The thing that is true is that what makes PayPal really unique is the two-sided network of consumers and merchants operating at scale globally with all the capabilities in between. What that lets us do is, along with these many, many iterations that we talked about, we're not just iterating on our own, we're iterating with partners.
Those partners that we're iterating with is some of the biggest names in tech, platform players that we've talked about, it's also financial services players. We think about issuers and networks and acquirers and others that we're bringing into this as well, that it's great for all of us. Dan opened up with how much of the world still runs on cash. We all have that as a common enemy, because we're opening up the platform and others are seeing that we can deliver these experiences in ways that no others can, we're seeing many, many more players in the ecosystem partnering with us, helping to iterate with us. They're looking at us saying they know they benefit from that because we're enabling transactions that nobody else could.
We're bringing incrementality to them as well, we're helping them to participate in the way commerce gets rewired over the next several years. We're helping them to participate in the way consumers are going to rethink how they'll interact with financial services. As much as we have amazing progress, we're still early days, there's lots more to go, hopefully, we've conveyed some of why we think there are real structural elements that let us go compete and play in that area in ways that no others could, right? Those are defensible structural advantages that are really, really hard to replicate. The two-sided network, many players have tried to replicate. It's very hard to do.
By us being willing to partner with others and let others receive that benefit, we think that we are in a fantastic position to go build that mobile future with many other players in the ecosystem as part of that as well. Thank you all, and with that, I'll turn it back over to John Rainey.
Well, thank you all for being here and investing your time to hear about our story. I know we've gone through a lot of material. We're in the home stretch right now. Our goal with this Analyst Day has been to demonstrate to you that we're executing on our strategy and how we are transforming our company into becoming a customer champion. You've heard this morning from the likes of Dan and Bill and others, how we've positioned ourselves from a technology perspective to do that. We're also doing it from a financial perspective as well. You'll hear more about that in the coming slides here. It's important to note that with the strategy that we have, we can continue to drive the key financial metrics of revenue, EPS, free cash flow, to continue to increase shareholder value.
The theme throughout the day has been customer champion. It's important to recognize that being a customer champion is truly at the heart of who we are. We are reinventing ourselves as a company right now to allow our customers to do what they want and when they want on PayPal. Our desire is to be at the very center of our customers' daily financial lives. By the very same token, we are putting our customers at the center of everything that we do and all the decisions that we make. That will allow us to be the world's leading open digital payments platform. At the same time, it will also change the economics of our business, and deliberately so, because it's a strategy that allows us to capture this enormous growth opportunity that you've heard about today.
Simply put, our powerful, two-sided global platform makes our future as the customer champion possible from both a technology perspective as well as a financial one. You've heard a lot about how we're driving this from a technology perspective, but from a financial perspective, it's fairly simple. Our scale allows us to grow our revenue at a lower overall marginal unit cost as we continue to expand relevance and ubiquity with our customers. Dan spoke at the very beginning about the opportunity that we have in front of us. That opportunity is underpinned by two massive and global trends that are taking place. The first is the mass adoption of mobile technology, the second being the digitization of money. We firmly believe that we can play in and win this $100 trillion digital commerce opportunity.
To get there, we will leverage many of the assets you've already heard about today. 2 decades of experience in digital payments, our infrastructure, our technology, and our innovation. As has been suggested earlier, we cut our teeth in this business by being a button on a website, but we are so much more than that. We have a unique set of assets that singularly positions us to be able to take advantage of the tailwinds that I've described, the proliferation of mobile technology and the digitization of payments, so that we can transform the way that our customers move and manage money. We're not stopping there. We will continue to add to our suite of products with other things that add value to customers and enable that vision of becoming a central part of their everyday life.
You've heard today about our compelling merchant value proposition. When that's combined with the engaging consumer offering we have, we have a very powerful two-sided network. We combine that with best-in-class risk and data analytics, with a robust and agile platform. That allows us to offer truly differentiated products like One Touch, contextual commerce, and credit. This is all strengthened by the power of our brand. We have 17 years of trust and engagement that we've developed with our customers, and we are at scale in over 200 markets around the world. All of these together will help fuel our growth for years to come. PayPal is one of very few companies that have the size and scale that we do, that also have the same growth profile that we do.
By virtually any measure up here, you can see that our growth has been impressive. We continue to add millions of customers each year. Just as importantly, those customers are becoming more engaged, as we see their level of engagement increase each quarter at double-digit percentage rates. Those two combined result in the type of transaction growth and TPV growth that you see here, both of which are appreciably faster than the overall e-commerce market. Strong customer metrics directly relate into strong financial metrics. Since our separation from eBay, in each of the three quarters that we've reported earnings, you've seen revenue growth in the 20% range. Because of the scale of our business and the efficiencies of our platform and the operating leverage, we've been able to grow EPS even faster than that.
In each successive quarter, we're generating more and more free cash flow, with free cash flow margins well in excess of 20%. I want to be very clear about one point, that's when we talk about being a customer champion, that is not incongruent in any way at all with creating shareholder value. In fact, we think that it's the very vehicle to increase our shareholder value. These are the metrics that we are focused on as a management team, increasing revenue, increasing earnings per share, growing free cash flow, because those are the metrics which most closely tie to our value as a company. I want to spend a moment here talking about the basic economics around being a customer champion, these are very basic principles, but I think they bear discussing because it's a fundamental shift in what we've done historically.
I first should acknowledge that if we have a goal to increase our ubiquity and relevance with our customers, then it is absolutely imperative that we are more than an occasional purchase on a website. We need to be an everyday part of their financial lives. To do that, we have to offer PayPal as an option where they shop and buy things every single day. That requires expanding into larger merchants. Larger merchants are going to drive a lot of volume, but they'll also benefit from volume-based pricing. This is going to cause our take rate, our unit revenue, to decline from where it is today. That's part of our strategy, because that also drives much of the volume that we see in our business. The result of two of those together generates a lot of revenue growth.
Key for us is our ability to grow while still keeping our unit revenue costs growing at something less than I'm sorry, unit costs growing at something less than unit revenue. The result of all of this is free cash flow and EPS continuing to grow to increase shareholder value. Dan talked earlier about the vision and the aspiration we have in terms of the number of transactions that we have today, two to three times per month, and moving that to something like two to three times per week. I won't belabor this point, but I want to point out that the very bottom of this graph, I think this is the salient point here, is that customer choice drives this.
Very simply, by customer choice, we mean removing friction from the PayPal experience today to where our customers can do whatever they want, whenever they want with us. We have very diversified assets that all have very strong, discrete growth characteristics, and you've heard about that in the balance of the presentation today. The important thing about this from an economic perspective is when all these assets are combined together, they act as accelerators in our business, creating what you hear us refer to as a flywheel-like effect. If you look at products like Venmo and Xoom, they increase engagement with consumers. Credit is a great complementary product that increases our share. You've got Braintree, where we have a greater share of checkout, and then we're expanding into new and different offerings that we don't have today, and in an entirely different context, like what Juan alluded to.
The important point about this is that the value of all of these assets is far, far greater than simply the sum of their parts. Now, I want to spend a moment walking through the economics of the flywheel-like effect on some of these different components of our business, and I'll start with Braintree. As was discussed by my colleagues, Braintree is a very high-growing part of our business, and it's generating a lot of our revenue growth as well. Part of the magic of Braintree, particularly from a CFO's perspective, is this flywheel-like effect. Because we see that when we have 100% share of checkout with merchants, it gives us the ability to have the branded PayPal Core as an option as well.
Moreover, when we do that, we see an increase in that usage versus just a standalone merchant where we don't have 100% share of checkout. Let me orient you to this slide here real quickly. On the left side, we've got the amount of revenue that we have from a merchant. The right side is the value or the profit, if you will, from a merchant. In each of these cases, we're comparing and contrasting simply the branded PayPal experience and product versus Braintree and the branded experience. Where we have Braintree capture 100% of the processing, we see a 20% flywheel-like effect on the branded business. The net result of all of this is that when Braintree is doing the processing for a merchant, we have five times as much revenue than we otherwise would, and two to three times as much value.
Credit is another part of our business. Steve covered this very well earlier, it is truly a complementary product that we provide very much for the flywheel-like effect. It's been relatively constant at about 2%-2.5% of our TPV over the last several years, there's no reason necessarily to see that ratio change over time. We can accomplish the things that we want to with credit, with credit's percentage of our business being in that range. Steve, again, covered a lot of this, a couple of quick points. In addition to reducing cart abandonment, seeing a higher level of engagement, we see 20%-30% greater spend with credit customers. For customers that sign up with credit the first time, it's twice as much. That's a very compelling value proposition to take to merchants.
With our working capital product, we help our merchants grow. That's good for them, and that's good for us. Because of that, we also see a dramatic reduction in churn. Steve covered this, but I think this point is worth re-emphasizing because there have been some that have speculated about our dependence on credit for revenue and operating income. I want to dispel that notion again. PayPal Credit for us today is less than 10% of our revenue. At our current growth rates, we don't expect that to be greater than 20% in the next decade. That's a very important point as we think about the durability and the quality of our earnings. One Touch is, I think, a fantastic example of the innovation of our business.
You've heard a lot today about the product features around that and what that does for us and how compelling that is for merchants. To put some simple economics around this, what this means financially, we've got 22 million users that have opted into One Touch. That's a relatively small proportion of our population today. With those users that have adopted One Touch, we see on average a 5% increase in the level of engagement. If I just use simple math here for a second, that results in roughly one and a half more transactions per account. I take that and I multiply it by our share of the average payment value. The annualized benefit of those customers that have adopted One Touch is $50 million in incremental revenue.
When you consider for a second that a large portion of the population has not adopted this yet, and there's the potential to increase that 5% engagement to something beyond that, you can see that $50 million can become a multiple of that over time. We have 1 million merchants in 144 markets that have signed up for this. Perhaps the most compelling data point about One Touch is the very last one in the bottom right here. One Touch drives not only higher conversion, appreciably higher conversion for merchants, and that's very compelling in terms of the value proposition. I think that there's probably no better example of the growth in the digitization of money than what we see in P2P. Jo covered that very well earlier.
When you look at the average PayPal user versus a user that is heavily engaged in P2P, the number of transactions is 67% higher. The more compelling point from a financial perspective is not up here. When we look at the customer lifetime value of a P2P user versus the platform average, a P2P user is twice as valuable versus the platform average. When you consider for a moment the potential of something like Venmo, where their user base today is already four times more engaged than the PayPal user base, you can see why we get excited about that and consider that to be a huge opportunity in terms of the growth of our business. Customer choice. Again, customer choice is allowing our customers to do what they want, when they want.
Several of you have asked me questions about this in the past that, well, won't that mean that that will change your funding mix? If the organic funding mix is something different than what you experience today, won't that make your costs go up? The answer is yes, that's entirely likely. All right? I also think to just focus on that misses the more compelling point about why we're doing this, because there's a revenue side to the equation as well. We have seen that when we remove friction from the process for our customers, we have much higher customer activation, we have a much greater level of customer engagement, we have much less customer churn. All of those you can take together to a merchant, that creates a very compelling value proposition to acquire more merchants.
Very importantly, to the far right, this allows us to partner with other people in the ecosystem in ways that we've not been able to historically, because we can drive tremendous amounts of volumes to our partners. To bring this full circle, we've got a very complementary and compelling suite of products, one that we will add to as we go forward, all again, to get to a point where we can be at the center of our customers' daily financial lives. As we do this, our platform becomes increasingly powerful. This is the opportunity to bend the curve here with what we're doing right now. This depiction here is forward-looking. You see our growth by the various components of our business.
As we grow our merchant services with the likes of Braintree, as we expand the engagement of our P2P usage, as we expand mobile, we have the opportunity to double our payment volume from last year in just the next four years to $600 billion. That's something that this team is laser-focused on achieving. I want to transition for just a second to talk about some of the fundamental economics of our business. The graph in front of you shows two lines. One is our payment volume, the other is our take rate. You can see in the center of that graph where the two lines diverge. This is a direct result of the execution of the strategy that we're taking right now. All right? As we expand our product mix and we expand in the larger merchants, that drives a lot of that volume growth.
It also results in a take rate decline. I want to be very clear about this one point. Our take rate decline is not a result of a decline in like for like pricing. It is entirely a result of merchant mix, product mix, to a lesser extent, foreign currency headwinds. Even despite this take rate decline, we were able to increase operating income 15% in this period of time. Part of that is because of the operating leverage that we have in the business. This is a similar graph, but this shows our volume-related expenses and all of our other expenses expressed as a percentage of revenue. You can see intuitively, as our volume has grown, our volume-related expenses have grown.
We've been able to offset that with the operating leverage we have in the business, that's because a significant portion of those other operating expenses are fixed costs. This pie chart depicts the breakdown of our cost in that bucket, roughly 75% of them are fixed in nature. There's no need to grow those just because we're growing. We have the discretion to, but we don't have to. It's not required for our growth. When you look at that in terms of our transaction cost or our cost per transaction on the volume-related expenses, that's declined from $0.72 to $0.70. More compelling, more impressive, is the non-volume piece. That's gone from $0.89 to $0.78, a 12% decline over time. The result of that allows us to generate operating and free cash flow margins consistently in the 20% range.
Last year, we generated $1.8 billion in free cash flow, roughly $0.20 of free cash flow for every dollar of revenue that we've earned. This year, our expectation is to generate more than $2.1 billion in free cash flow. The important thing about that, though, allows us to reinvest in our business for growth, creating this virtuous cycle for growth. The blessing of being a large cash flow generator, as well as having a strong balance sheet, is it gives us the opportunity to allocate capital in a manner that can increase shareholder value. We've discussed in the past what our priorities are for capital allocation, I think I can simplify it. Very simply, our priority is growth, we want to grow our customers, and we want to grow that level of engagement. We can do that through organic investment.
We can also do that through acquisitions. Because of our balance sheet and our cash flow generation, we can also complement that with returning cash to shareholders. We've demonstrated a lot of success in each of these areas. We've invested in our platform and in innovation like One Touch. We've had successful acquisitions like Braintree, Venmo, Paydiant, and Xoom. In the first quarter, when the stock market traded off, we repurchased almost $600 million of cash, well below our intrinsic value. This was the graph that we showed at the time of our spin with our medium-term guidance. We suggested that TPV growth would grow in the mid-20s%, each quarter since our spin, we've exceeded that by a fair margin.
That gives us and the management team even more confidence today in our ability to consistently generate revenue increases annually of 15% year after year. We can keep our operating margin stable to growing. I also want to be clear, we're not going to shy away from investing in the business, much like the example that we've done with Xoom in the last year. That is a good long-term decision for us. We're not necessarily managing margin for the next quarter. Lastly, free cash flow can continue to grow in line with revenue, all of which will help to create the type of shareholder value increases that we expect. That's one point I want to really impress upon this team, is you have a management team here that is laser-focused on increasing shareholder value. We want to continue to grow revenue.
We're focused on high-quality, consistent, durable earnings. With our cash flow generation, we can continue to invest for growth, and we'll allocate capital to maximize shareholder returns. I want to close with this. As you've heard today PayPal is an open digital payments platform that's operating at scale on a global level. We have exceedingly strong talents, and you've got a management team that's focused on delivering. We have an enormous opportunity in front of us, and we believe firmly that PayPal is the company that is uniquely positioned to capture that opportunity. With that, I'd like to ask Dan and Bill to join me back up here on stage, and we'll open this up to questions. Thanks.
Okay, for Q&A, we're going to have four mic runners in the room. Raise your hand. They'll get to you. We'll call on you by paddle number.
Can I give you this?
By what?
By paddle number.
Oh, okay.
Thanks. It's Jamie Friedman from Susquehanna. I was going to address the question to Juan, but I'll address it to you, Bill. With regard to embedded payments and what you call contextual commerce, are you expanding the payments pie there, or are you just elevating Braintree's significance in the payment stack? Is the post contextual commerce bigger or is it just more important for Braintree?
I think for the contextual commerce experience as well as much of the other experiences we're talking about, we are growing the pie, right? That's really been true of contextual commerce. You think about this, that these, if people are more likely to transact, we talk about that with One Touch. When you increase conversion, these were lost sales, right? You truly are growing the pie, not just for the payments ecosystem, but for merchants and satisfying consumers. We're early with contextual commerce, but we think it is very much a pie growing kind of opportunity. So much of the business, One Touch, or the way that we enable SMB small businesses to come online and sell around the world, these are all transactions, or many of these transactions wouldn't have occurred otherwise if there wasn't a way to get there.
Much of the PayPal business is pie growing and new activity that wouldn't have otherwise occurred.
I just have one follow-up. Dan, with regard to the objective of expanding from twice a month to twice a week, that's 75 incremental transactions a year. How much of that 75 increment is face-to-face? I realize the lines are blurring, but mobile face-to-face, however you want to define it, how much is that incremental to your market opportunity? Thanks.
Yeah. We haven't broken out exactly as we go from 28 or so to 100 or so transactions exactly where each of those comes. What we do know is every single time somebody adds an incremental service, their amount of usage with us and their engagement grows dramatically. As you see from Jo's presentation, John referenced this, when you just add P2P, you see an increased engagement of 57%. That to me is an amazing stat and we are adding more and more functionality and ubiquity, both in terms of how somebody can put cash and money onto the platform, how they can take that money off the platform, and what they can do in between to manage it.
What I've seen in my history in financial services is every time you add a little bit to that, it doesn't go up just by that little bit. The flywheel effect expands dramatically. I've seen at other places that I've been where when you do this, the lifetime value of a customer can increase five times from where it was before. We're very focused on this in terms of just being more in the middle of how consumers manage and move their money, and that's going to be both money coming in, money going out in different contexts, including contextual, as well as how they manage it in between.
We'll take two.
Thank you. Colin Sebastian from Robert W. Baird. First off, with respect to the large addressable market, $100 trillion, and the blurring of the lines between online and offline, I wonder if you could put a finer point on the in-store opportunity in terms of the pace of the roll-outs, how quickly we should expect that to evolve. Secondly, just interested in your higher level comments or whether you can envision a time when there might be a unified PayPal branded loyalty program, if you see any value in that over time. Thank you.
Take the first, I'll take the second.
Sure. I'll take the first part of that around how long to get to in-store. We showed with mobile, for example, that many of the experiences we launched, mobile, we launched our first mobile experiences in 2006. For the first four or five years of that, mobile was less than 1% of PayPal's TPV. Now it's a full 30% of our transactions. You had a four or five-year period there where we were iterating, the market was evolving, and it took a while before it really caught on. Once it did catch on, the two-sided network, the things that we can bring to bear that others can't, made it so that PayPal enables far more of that than just about anybody else in the industry. I think with in-store, you'll see a similar thing.
It's going to take a little while for that to catch on, right? We're sort of on that curve that we showed of sort of what mobile looked like back in 2006 and 2007. I think in-store's sort of at a similar stage around mobile affecting in-store, but you're starting to see the beginnings of those types of things, right? You think about the Starbucks app or the Subway app, other retailer-driven apps that are really starting to get engagement in the store, and I think that you're now starting to see the beginnings of that. While it's going to take a while to play out, you're starting to have visibility into what's going to matter.
The common points there are If we can enable merchants and retailers to bring their value prop to life, to share their loyalty and their rewards and those types of things, you can get great engagement, but it's got to be more than just moving swipe to tap. Those have been sort of very slow to get going. Things like the Starbucks app or like the Subway app, you're bringing order ahead and loyalty and rewards and these kinds of things to bear, consumers are willing to engage, and there's a lot more growth. We think it's early innings, but with lots more potential to come in the future.
Yeah, just to add on top of it, we're also doing this very, very differently than we did maybe three, four, five years ago. What we're building now is a platform that can be extended to any POS environment across any operating system. What we're not trying to do is bespoke heavy development customization for every integration into a retailer. That's expensive. You're trying to change a consumer behavior, and it's a very high beta whether it'll be successful or not. What we want to really do on in-store is naturally follow the consumer using mobile. Mobile really is the disruptive element here. We were an online shop, and we started following the consumer using mobile, and now we have great share position in mobile transactions, and that's both in-app and mobile web.
We're just going to follow them as they move mobile to in-store. We've got with some of the larger merchants, some more, we're working a much more fulsome cross-context integration, but utilizing all elements of our platform. That gets me to the second part of your question. We actually don't think there's a need for us to create our own rewards or loyalty program. I've seen that before as well. It can seem initially attractive until you see the looming liabilities on your balance sheet as you start to pull that out. We have a great service, what we want to basically do is enable merchants and tech companies and mobile carriers to create the value proposition, including rewards, right? Give their consumers a reason to use that application through great compelling value proposition.
We'll take those rewards and connect them straight into our platform. That gives us a cross-merchant, cross-tech company rewards platform that we're not funding, but is a part of our platform that enables our consumers. I think that's just the smarter way for us to go.
Three in the back.
Thanks, guys. It's Darrin Peller from Barclays. The information you shared with us is helpful today, but I think we were just looking for perhaps a bit more granularity. I want to touch first on Venmo, which I know is an area that could really enable some opportunity for incremental revenue. You talk about monetizing it. Instead of just telling us the volume, is there anything extra you could tell us about the number of users that are embedded in that 170 million consumers? How much overlap there is between your existing PayPal customer base that do or don't use Venmo today? Maybe a little more color on timing of monetization.
Why don't you start?
Much of what you ask for, we don't break out, and I can't provide you exact answers to those things. What I will tell you is that the $1 billion in monthly volume flowing through Venmo, the user growth is meaningful, right? You don't get to $1 billion, it's not sort of 100,000 people batting money back and forth to get to $1 billion a month. It's pretty substantial to be able to say that you're transacting levels that few other native apps in the world have seen. It's meaningful growth, but we don't break it out.
In terms of the overlap, one of the things that we see with Venmo is that, of course, you're going to have some overlap with PayPal users that are choosing to use Venmo plus they're choosing to use PayPal, just like with the other examples of multi-app strategy that we presented. How many people use an Instagram app plus the Facebook app? There's going to be some that do that. Is it important that you have that user engaged in both those places because it brings even more value to the network? Certainly so, right? While we don't break out specifics on those, you see some overlap, but it's also the case that with Venmo, you really think about Venmo as like capturing a demographic and being sort of a cultural phenomenon, right, in a way that few other applications have.
There's certainly a lot of engagement there with users that may not have otherwise been engaged in our platform. There is certainly incrementality to that it's not just pure overlap between the two. Even when it is overlap, there's value in us having the multiple touch points as we've hit sort of several times, and it just gives us more engagement from the users, gives us higher lifetime value. John took you through some of the stats on how much more valuable a customer is over its lifetime if it's engaged in P2P. Even if that's through a complementary app to PayPal, we think there's still long-term value in that. I don't know, Dan or John, if you'd add to that.
I'll just add a little bit. First of all, we want to be very responsible with the information that we give you. We're in beta right now. It's still a reasonably small amount of merchants, and we just expanded to 1 million Venmo users. We're looking forward to sharing that with you. We've gotten some very interesting, very positive feedback from our early results on this that encourages us to roll out as rapidly as we possibly can around this. Until we have more, what I would call sort of data that we can extrapolate against Really, to share any of that with you right now would, as I mentioned to some people, might get you either too excited or it depends on how excited you've already been on this.
I think we'll wait until we have a little bit more data set, then we'll start to share that information. We absolutely believe that our Venmo base is very monetizable. It is an extremely engaged base. We are going to add services beyond Pay with Venmo to the Venmo base as well. We're quite excited about that, but just give us a little bit of time to have some meaningful data and information to share with you, and as soon as we feel that is, we will share it, and look forward to it.
We'll take four.
Great. Thanks. George Mihalos from Cowen, again, guys, thanks for doing this today. Two quick questions. Firstly, Dan, you talked about having penetrated about 50%, I think, of the Fortune 500 retailers. What are the gating factors to getting into the remaining 250? Is there a handful of specific issues that you can call out? Secondly, on the risk management side, the 30 basis points that you called out on both the transaction side and on the loan loss side, just wondering if you can provide a little bit more color on what fraud is, just specifically on the transaction side, ex the credit business. Thank you.
I'll take the first part of that around getting to the rest of the Internet Retailer 500. It's actually the case that PayPal is accepted on approximately 75% of the Internet Retailer 500 in terms of PayPal acceptance overall. For One Touch, it's at 50% of the Internet Retailer 500 here in the U.S., just to reconcile those two. For PayPal overall, we're at 75% today. We have great distribution amongst really large retailers, as well as fantastic strength with small businesses, where we have 14 million-plus merchants that really get you into middle market and long-tail small businesses. For One Touch, getting from the 50% of the Internet Retailer 500 that we have today to the rest, much of this is around the places where we can directly control experience versus the places where we're partnering.
Across all those, we're bringing merchants onto One Touch, as well as the PayPal platform overall, quite quickly. We see that expanding as the value prop expands around these things, and we're solving mobile conversion, we're seeing merchant growth onto the platform across segments, whether it's large retailers all the way down to small businesses. At 75% of the Internet Retailer 500 accepting PayPal today, we've come a long way in that, and we expect that over time, we'll get to even more of those.
I'd also say, we're taking a lot of our legacy flows and moving them to our newest flows. As soon as they come onto our newest flows, those merchants automatically move into One Touch. We'll be doing that over the course of the year, and that's why we said in the last earnings call that we anticipate that the number of One Touch merchants will grow from 1 million or so today to well over 2 million by the end of the year. Part of that will be some of those in the IR500 as well. Tomer, did you want to Yes, Tomer, you're on the spot here.
Use the mic, Tomer.
You can use that mic.
Yeah.
Okay.
Second question, fraud is clearly the biggest financial threat that we face and the biggest risk that we face. That has been the case since the beginning of PayPal. It's also where we have the most experience in managing it effectively. It's a big chunk of what we manage, and it's also a big chunk of the loss that we experience. I think that's what I can say.
Yeah. It's very right.
We'll take one.
Hi, it's Bryan Keane, Deutsche Bank. Just had a couple quick questions. On One Touch, how fast can we get that consumer adoption up to 22 million when we think about the 170? What's some of the negating factors there? Secondly, on Venmo, can we turn on a switch too, like we did with One Touch, and get it up to one million merchants like we did with One Touch? Last one for John, just on credit, you gave us a good stat with 10% of revenue as credit. A lot of speculation on what that means for profit.
Less than 10%.
Less than 10%.
Yeah.
What that means for profit, can you just give us any kind of thoughts around that? Thanks so much.
On the $22 million for One Touch, that's in the course of one year. If you compare that to other new buying experiences of the industry, I don't think anything else comes anywhere close to that, particularly when you think about that being done around the world. We still see it growing rapidly. We're not providing forward projections on what that looks like. I think we've been giving updates each quarter as to how that's been growing, and we've seen meaningful growth, and we see that continuing to grow. As Dan mentioned, as we turn that on for more and more of our merchant experiences, those are more places that consumers can use it, and there's a flywheel effect on that as well.
It's been pretty recently that we just lit it up for our full 200-plus consumer markets. We're seeing good continued growth in that. No specific forward projections on it, but good continued growth. We'll continue to provide updates around that. For Venmo specifically, as I mentioned in the presentation, we're really focused on getting the experience really right. We haven't given details yet of how we'll sort of deploy that further. However, we did talk a lot about one of the strengths of our platform, and you saw this with PayPal One Touch, is that because we control the experience that the consumer has on a merchant site, it lets us go provide new experiences in many, many cases, not in all cases, but in many, many cases, without the merchant having to do work.
That's why we were able to get One Touch out to 1 million-plus merchants in less than a year, more than half the Internet Retailer 500. As we think about many new buying experiences, that's a real structural advantage for us that we can deploy those over and over and over again without merchants having to do work. While we haven't provided anything specific with sort of the next steps around Pay with Venmo. The more macro statement of can you expect that as we iterate on our buying experiences overall, that we'll be able to deploy many of those in the fashion of One Touch that doesn't require the merchant to do work? Yes. It's a real structural advantage for us. We'll have.
One of the big benefits of the platform restructuring that we've done.
Yeah.
Yep.
Yeah.
Yep.
Bryan, with respect to your credit question, that we intentionally disclose revenue and not profits. Profit is not appreciably larger than the high single digits number that we see in revenue right now.
We'll take two.
Hi, it's Lisa Ellis from Bernstein. Two quick ones from me. First, in the consumer vision, you articulated bringing access to consumers, a wide range of financial tools, credit, access to deposit accounts, et cetera. Can you just talk a bit about how you envision doing that over time while still remaining a non-bank institution, and sort of how partnerships fall into that? Are you envisioning a world where you've got bank partnerships, where you're actually almost like a referral service or anything like Just give us a little bit more color on that vision. Then the quick second one is just around, John, you mentioned all around consumer choice, how that will inevitably increase, drive up your volume-based expenses over time. Very good color on the fact that about 75%, the non-transaction expenses are fixed.
Over the long term, what are some of the mechanisms by which you can actually bring the volume expenses down?
Sure. I'll answer the first part of it. Unless one of you guys wants to get into-
Please
the regulatory piece of this.
Gladly let you take that.
Yeah. As you know, Lisa, we operate under state money transmittal licenses here in the U.S., everything that we're talking about on that chart we can do through those licenses. You do not have to be a bank to go and do that. We are a bank, as you know, in Europe. There are other things that we can do, in our EMEA region on this. In the U.S., we do not have to become a bank to execute against the vision we put up against that. I would say, though, that the opportunity to work with in the ecosystem, we've talked about that several times, we're having many good, productive conversations. I think as we move towards this customer choice model, I talked about at the last earnings call, as we're much more happy to share data that we've kept to ourselves.
We think there are a lot of paths to a win-win between what we're trying to do and what banks and then networks are trying to do. We've got nothing to announce today except to say that we're under many different conversations. I would say they're very productive and encouraging. You never know which way these things will wind up at the end of the day, encouraging, I do think that there is a win-win for both us and for the partners that we work with.
With respect to your question on cost, first I want to preface this by saying we have a ton of opportunity in terms of the operating leverage in the business and some of the more fixed components. I know that's not your question, but I'm happy to elaborate on that. With respect to our funding costs, I think there's two buckets to think about that. One is the funding mix piece. The other is the simple IT cost to perform those transactions. If I take the latter one first, when we compare ourselves in terms of the cost of our platform versus others in the ecosystem, we're at the high end, and for good reasons, because it's not exactly apples and apples, but I think over several years we can bring that down by probably a third from where it is today.
There's a big opportunity there. With respect to the funding mix piece of that.
Just wanted to say, Sri, did you hear me?
With respect to the funding mix element of that, certainly people organically perhaps would come up with a different funding mix than what we have today. We shouldn't lose sight of the fact that as we pursue this higher level of engagement with our consumers, you know if you use our app, that the more you use it, the more apt you are to leave a balance in there as well. We shouldn't minimize the fact that that is our lowest cost funding source today. That has a way of muting some of the impact over time as well.
We'll take three.
Thank you very much. Youssef Squali at Cantor Fitzgerald. I just really have one quick question for John. I was just wondering, just want to make sure I'm doing my math correctly. If you said that the medium-term guidance basically is for TPV growth in the mid-20s, but at the same time, you're also talking about TPV doubling over the next four years, that implies, I don't know, 18%, 19%. Is that all FX? What also goes in there? Thanks.
Yeah, our guidance is all FX neutral, but basically I'm suggesting if TPV were to grow at 25% per year over the next four years, we could double it from where it is today.
We'll take four.
Hi, it's Ashwin Shirvaikar from Citi. I have a question on cross-border, clearly important for you guys. Are there any particular countries or regions that are driving that for PayPal, and could you talk about if there's an impact from PSD2 in Europe on your cross-border revenues? If you can walk through that.
Yeah. Take a first crack at that. Our cross-border business, we're in 200-plus markets, right? You certainly have sort of key corridors that are important to that, right? You think about sort of India, China, places like that. Those are key corridors for us. We've launched experiences. We have an example of one that we did with China UnionPay around helping to get Chinese consumers connected to rest of the world, those kinds of things. There are certainly key corridors within that. I think the real power in it is that it's not specific to any one corridor. It's really that many, many of these matter, and we are in 200-plus markets on our consumer side and 140-plus markets on our merchant side. It really is around many, many of these that's happening. It's not constrained to just a couple of key ones.
I think, I don't know if others want to chime in on the regulatory piece of it.
Well, I won't chime in on the regulatory piece of it. What I will say is it's not just by chance that so much of our business is cross-border. I think as Tomer talked about in his presentation, we guarantee every one of those cross-border transactions. We guarantee it because we have great risk modeling underneath that. When you can guarantee a cross-border transaction, it's way more important than a domestic transaction. If I'm going to shop at a Nordstrom, I know Nordstrom, I feel comfortable with it. I don't necessarily need that guarantee. If I'm going to shop at a merchant in a country, and I don't know that merchant quite as well, that guarantee matters a ton in cross-border trade.
I think the latest research that came out, I'll get this number wrong, but it's somewhere like 75%-80% of consumers would choose to use PayPal for cross-border because of the guarantees that we give. It's the fact that we have so many merchants across the world, and we have consumers across the world. In every one of those regions, and John shared some of the statistics, you can see in APAC, in EMEA, in North America, there's extensive use of cross-border.
Yeah. We shared a little bit around some of our different regions, EMEA, North America, APAC, and how many of our consumers activate around those things, as you can see a little bit of how it's important across all of those. We have some like EMEA, where it's really important. Consumers are even more familiar with buying across borders, and we've expanded some of these protections, not just the sort of financial protection, but things like free return shipping and those kinds of things that let people buy more and more with confidence. It's all part of why we see 25%+ of our business on cross-border versus the industry's hoping to get to 15% in the next six, seven, eight years.
There was a PSD2 piece to that, along with that, if I can add a question on contextual commerce, obviously you're adding the party that provides context to that mix. I would imagine that they would look for a piece of the pie. You're also providing a lot of value expansion to the merchant. Can you talk about how that evolves?
Sure. On the contextual commerce piece, if you think about there's going to be many different players that participate in that, right? One went through some of that can be just transacting in the email that you receive, right? Where you're still directly interacting with the merchant, doing it inside of an email versus having to sort of come outside of that. You have other players that are going to participate in that that may have businesses built off of things like advertising, where they may think about it and say, "Hey, it's not necessarily that I need a cut of transaction economics," because they have really rich economics on the advertising side, they care more about, can I sell more effective ads?
If I can demonstrate that those ads lead to a transaction, well, I don't want to go play for pennies in a payment processing business. I want to go sell more effective ads. I think it's going to be different across different participants there. I don't know that you need to jump straight to the conclusion of, well, there's more mouths to feed. I think it's a pie-growing exercise, transactions that wouldn't have happened, and different players will think about how they sort of take their piece of that growing pie, not necessarily around sort of just a toll charge or more mouths to feed because it is pie-growing.
Many of those intermediaries do have ad-based platforms that they look on, and one of the big things that they don't like is a redirect away from that site.
Right.
If you actually can keep the consumer on the site, allow them to make the transaction, but keep them there, that for them is actually a great thing as well. You could argue, might we be able to enable even more economics as a result of that?
We'll take one.
Thank you. Bob Napoli from William Blair. Dan, as you said, the payments industry is changing, Bill, pretty dramatically over the next several years. I think so is the competitive environment and who you're competing against. The bear case against PayPal was that you're going to get disintermediated by somebody or some of the assets you've built up are less valuable. Who are you looking at today? Who do you consider your most dangerous competition? You have Apple in-app payments. You have Stripe. You have Alipay, the cross-border, 40% coming out of China, Alipay, Tencent. How do you monitor that competitive environment? Who are you most concerned about, and why doesn't PayPal lose some market share or partially get disintermediated itself?
I'd say, first of all, it's not going to be one player wins all. It is a $100 trillion marketplace out there. We have maybe 1% share of it. I'm not going for 100% share of that. I'd take some percent share above that and would be quite successful for us. Number two is payments is really hard, and there have been one high-profile initiative after another that have not succeeded. There are a ton of charts that show PayPal growth versus all the different competitors that have come in. I think, the recent experience that MCX went through is just another example of how difficult payments really is to go and do.
We have a number of very unique assets against any player out there, and I think we tried to show just the extent of that right now in terms of where we are in our basic proposition and how we're expanding that, but all the other things that we're doing and the traction that we're getting there. Every time you do that, you reinforce the flywheel effect. People talk about Apple Pay coming into browser. Apple has been already in mobile, in-app, since the beginning of their launch, right? A lot of people don't. Most of you probably in here recognize it, but a lot of people don't when they hear that news. In-app is probably like 60% of mobile web commerce right now, and it's not easy, actually, even when Apple moves into it. It isn't like you can just put your fingerprint on there.
You've got to have shipping information, et cetera. For the consumer, they've got to add in a tremendous amount of information to be able to use that. For merchants, if it's going to be a native integration and not a redirect, there's code and work that they need to do to implement that as well. The other thing that we have that is really different is we control, and Bill talked a little bit about this, and I thought it was a really good point, but I wasn't sure that everybody understood it. We control the end-to-end value proposition. By the way, there's expense associated with that, et cetera. What that means is that we figure out how to onboard a customer.
When you look at others, like an Apple or others, they depend on the banks to figure out, can you onboard that customer? Because when the banks didn't do that, there was tremendous fraud that came in. When you think about all the things that Tomer does with risk management that allow us to basically define our value proposition to give guarantees around transactions. Well, if you're just providing the UI piece of it and not controlling that piece of what gets accepted, what doesn't get accepted, you're not controlling that whole value proposition. You're controlling a piece of it. When you want to do servicing, because things inevitably go wrong at some point. We try to make them never go wrong, but inevitably they do. You need to actually provide that servicing within the context of that whole value proposition.
Unless you control the whole thing, when you have a problem, you call into one place thinking that you're paying with the brand of what you're doing, then get redirected to a bank that has maybe the underlying financial instrument. Being able to control that full value proposition and basically having the scale that we have today, and a lot of people dismiss the scale we have today and think that that isn't actually an indicator of how successful we'll be in the future. Every quarter when we add incremental customer accounts and incremental engagement, that just strengthens our network effect. Unlike a lot of different pays out there, and there's a bombardment of pay announcements, people are confused. You can use it at one merchant but not another merchant. You can use it with a certain tender type, not another tender type.
You can use it with one iOS, but not another operating system. People are coming to us because we have a consistent, uniform, great value proposition across all of those elements. As I said on the earnings call, you're never guaranteed of your position going forward. You constantly have to innovate. Payments is hard. This is all we do. We have some 17,000-plus people that are just focused on digital payment. We've revamped our technology stack. We are innovating at a speed, and Bill showed some of those statistics, that we've never done before. We're very mindful of the competitive environment out there. We also have a chance to partner with a lot of that competitive environment.
People also thought Facebook at one time would be a competitor, and they're a huge partner of ours right now, and we're enabling their aspirations through our platform. I think there are multiple ways of thinking about this. I think the, no pun intended, the uber point of this is that we feel really good about the future as we see it right now.
Great. We have time for one last question. We'll take two. Yeah.
Yeah. Thank you.
Hi.
Before the spin from eBay, there were a lot of reasons for the spin, the ability to acquire talent. We've seen a lot of that today. Just the way the market would handle growth versus value, and that's played out.
In terms of the other justifications, the ability to add other merchants, partner with other partners, what have you been able to accomplish since the spin, and what do you think you'll still be able to accomplish?
Yeah.
The second question, you talked about a multi-app strategy and how you'd incorporate different capabilities. Does that mean we're going to see cash out of PayPal? Does that mean you talked a lot about Venmo and monetization, but Venmo's been a great customer acquisition tool for you. Do you feel like it's fully internationally penetrated, or is there an opportunity to roll it out to other countries, geographies as a customer acquisition tool as well?
Do you want the first part of that, and I'll Since eBay, the partnerships post eBay.
I forgot about the eBay separation. Happened so long ago. First of all, eBay is a great customer of ours. Devin and I have dinner all the time together. We work extremely closely together. We are doing our best to be a great partner to them and actually not just a great digital payments partner to them, but actually thinking of ways how we can help to drive their business forward as well. That, by the way, is going fantastic. John Donahoe and I met, and we were just kind of reminiscing on just how well that's going versus all of the meetings and conversations we had about it as we were doing the split. That's working extremely well. You're also seeing really the benefits of that split, where we truly are an independent, neutral third party.
All of the partners that you're seeing us work with, Alibaba, wholesalers that's gone from trial now to actually rolling out even platforms like a Facebook and others where you had competition in some way with eBay. All of those boundaries are down right now. We are having conversations across the world with people who we never could have had conversations with had we been a part of eBay. I think you're right. I think the talent piece of that has helped. What's really helped with the talent is we're focused, and we've also been able to revamp our tech platform, and that's enabling us to attract a lot better engineering talent than we've ever had before. It's fun. It's fun to work on things that are growing, that make a real difference in the market. There have been a huge number of benefits.
We're extremely happy with it. I think Devin is feeling good about what he's trying to do as well. He's working hard at that.
The second part of that around Venmo and sort of opportunities there. You asked about international. Venmo today is still U.S. only. In terms of is there opportunity around international, well, given that it's U.S. only today, certainly that's an opportunity. We haven't announced anything specific as a sort of when we'll do that. We're much more focused on making sure we get the experiences really right and that those are resonant, and we sort of bring the Venmo magic into each new experience that we take on. We're focused on that first and foremost. Certainly given that it's U.S. only, does the rest of the world present opportunity? It's a reasonable conclusion for one to draw. The other part of your question around sort of the multi-app strategy.
Do you want me to make closing comments?
The way we think about that, I think you were asking like, "Hey, are we going to carve out more services outside of the PayPal app?" The PayPal app will continue to be the centerpiece of that, right? If you think about the core aspects of how people manage and move their money, sort of the key way that we want to interact with our consumer, you're going to see that in the PayPal app, right? Much in the way that the Facebook app, as much as there's sort of Facebook Messenger, WhatsApp, Instagram, this other family of apps, the Facebook app is still the centerpiece of those experiences. You can think of the PayPal app that way for us, right? You have Xoom and Venmo, and we have other apps. We have a PayPal Here app that allows merchants to take card-present payments, things like that.
The core PayPal app will continue to be the centerpiece of how people manage and move their money. As we get to more of those experiences that may be too heavyweight to put into the PayPal app, thinking about how you carve that out is some of what we'll think about. Demographic sort of experiences, things like that, we'll think about. It's a conscious strategy, to make sure that the PayPal app remains the centerpiece, but also effectively leverage other apps when there's a more heavyweight use case or a type of experience or demographic that we want to serve, much as you've seen from other players in the space, like a Facebook or a Google.
Thanks, Bill.
All right. Well, we're going to wrap up. I want to say thank you again for all of us. We recognize that this is a significant portion of time that you carve out to do this, and we don't take that lightly. We've tried to put a program together for you today that you could get an understanding of what we think is important as well as what's of most interest to you. We appreciate your interest. We appreciate those of you who are shareholders, and we look forward to doing this again next time. Thank you.
Thank you.