PayPal has added 9.1 million new active accounts surpassing 254 million net active users in 3Q18. And that number will likely grow significantly thanks to its Walmart partnership, through which PayPal will target a large portion of the underbanked audience.

In the earnings call yesterday for the third quarter ended in September 30, PayPal CEO Dan Schulman stated:

Walmart and PayPal share the belief that managing and moving money should be affordable, accessible, efficient and secure for all segments of our population. And while digital and mobile commerce continues to grow at remarkable rates, there are tens of millions of people that still do not have access to the benefits of the digital economy. This partnership which leverages and combines the unique strengths of both our companies is aimed at addressing that issue.

The first service PayPal and Walmart will provide is enabling customers to withdraw money from their PayPal balance on the PayPal mobile app at any Walmart retail store or Walmart money center in the country. This service will go live next month.

“Additionally, customers can use the PayPal cash Mastercard to shop in store on mobile and online at Walmart, as well as withdraw cash at the register or from Walmart’s ATM locations nationwide,” Schulman said. “And this is just the beginning, we are currently working hand-in-hand with the Walmart team to introduce even more capabilities in the future.”

Aside from building partnerships with the likes of Walmart, American Express, and Chevron, PayPal saw an impressive growth in its core business seeing a 27% YOY increase in the number of transactions to 2.5 billion with a 24% increase in YOY total payment volume to $143 billion.

And of course, no talk of PayPal is complete without mentioning its social P2P platform Venmo. During the third quarter, Venmo saw “yet again another record for net new actives. This is driving accelerating network effects as volume grew 78% to $16.7 billion with an annualized run rate now approaching $70 billion,” Schulman said.

Venmo processed over $1 billion in instant transfer volume on as of last month. Perhaps this large volume was the impetus behind PayPal’s decision of raising the instant transfer fee from a flat $0.25 to 1% of the transaction amount.  

During this quarter, PayPal reported net revenue of $3.68 billion up 14% from $3.2 billion in the same quarter last year. As for net income, during this quarter, PayPal reported $694 million up from $560 million in the corresponding quarter last year.