PayPal is strategically evolving Venmo, its peer-to-peer payment app, into a significant revenue driver, with the platform’s total payment volume (TPV) increasing by 14% year-over-year in Q1 2026. This growth marks six consecutive quarters of double-digit increase, raising Venmo’s share of PayPal’s TPV from 18% to 19%. Notably, Venmo expanded its services to over 90 markets in March 2026, connecting users to hundreds of millions of PayPal accounts globally.
In addition to peer-to-peer transfers, Venmo is now offering monetized products like the Venmo Debit Card and Pay with Venmo, which grew by 34% year over year. This integration further strengthens PayPal’s merchant ecosystem, allowing for increased usage at various merchant checkouts and enhancing customer engagement.
Shares of PayPal declined 2.1% over the past three months, trading at a forward P/E of 7.91x, significantly lower than the industry average of 17.28x. The Zacks Consensus Estimate for PayPal’s full-year 2026 EPS is $5.30, maintaining a Zacks Rank #3 (Hold).
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