PayPal's payments app Venmo processed more than $27 billion during the quarter ending Sept. 30, representing a 64% jump in payment volume from last year, according to the company's latest earnings report.
The Venmo app has yet to turn a profit, according to CNBC, but on an earnings call Wednesday, PayPal CEO Dan Schulman said the company is making progress in its efforts to monetize the platform.
PayPal's total payment volume was $178.7 billion for the quarter, a 27% jump from last year. Net income for the company was $462 million, a 6% increase from the previous year.
Fresh off a successful quarter, PayPal is bullish on the future of digital payments.
"We've been talking about this phenomenon or trend for years now, and it's here," PayPal CFO John Rainey told CNBC on Thursday, referring to what he described as the "death of cash."
Rainey said the digitization of payments and the growth of mobile devices have contributed to the expansion of PayPal and Venmo, adding that the platforms provide a service for the globe’s roughly 2 billion unbanked people.
"It's where those two come together that really create opportunities like PayPal to really expand the suite of financial services, to large swaths of the population that are really underserved by how we characterize that today," Rainey said. "The unique aspect of those 2 billion people is roughly 70% have a mobile device. With that combination together, we can put all the power of a bank branch and all the financial services in the palm of their hand."
PayPal can put less money into its Venmo arm as the platform's user numbers and transaction volume continues to grow, Schulman said during the company's earnings call.
"[Venmo] is now, instead of a drain on our margin structure, helping our margin structure as we go forward and I would expect that to continue to happen," he said.
Efforts to monetize the platform include offering instant transfers from Venmo to a U.S. bank account for the cost of 1% of the transfer amount. The service includes a minimum fee of $0.25 and a maximum fee of $10.
The company also plans to roll out a Venmo credit card next year. PayPal announced last week that Venmo will partner with Synchrony Financial to launch the card, which will allow users to pay bills directly through the Venmo app.
PayPal said it still needs to iron out the card's offerings, such as rewards and cash back.