PayPal Increases Customer Base and Usage, Report Says

PayPal is rapidly becoming the most popular method of payment for online transactions, even though it was originally launched to serve only eBay acquisitions. Currently, about 76 percent of American users have such an account.

According to a survey conducted by Auriemma Consulting Group (ACG), the number of consumers who own a PayPal account has risen considerably from the 55 percent recorded in 2008.

Launched in 1984, ACG is a renowned consulting firm that focuses on analyzing the payments and lending industries.

Moreover, Patricia Sahm, Managing Director at ACG has announced that PayPal is no longer appealing only to young people, since 69 percent of the respondents aged 45 and above have stated that they are actively using such an account.

It appears that more and more consumers prefer to rely on their PayPal accounts for a wide range of online purchases as opposed to using their credit cards.

Despite all the malicious attacks targeted at this service, PayPal is still considered to be among the safest and reliable platforms worldwide, being recognized by numerous large companies.

Since e-commerce will continue to grow in popularity in the upcoming years, PayPal is bound to become even more popular, gaining the trust of the majority of online shoppers.

Moreover, ACG reports that the percentage of respondents that still feel 'uncomfortable' to enter their bank account details to an Internet-based service, has declined from 45 in 2008 to 31 in 2010.

“We’re seeing substantial gains in consumer willingness to provide their bank account information to PayPal,” Sahm said.

“Where Visa and MasterCard formerly had a complementary relationship with PayPal when consumers used their credit cards to fund their PayPal account, the credit card networks are cut out of the exchange when PayPal is positioned like a debit card linked directly to the checking account.”