Shopify’s Gross Payments Volume (GPV) (2016-2023)

This statistic highlights Shopify’s Gross Payments Volume, reported on a quarterly basis from Q1 2016 onwards.

Shopify’s Gross Payments Volume (GPV)

(All figures are in billions)

Gross Payments Volume (GPV)

Gross Payments Value (GPV) is a key performance indicator that is used to assess a company’s performance, discover patterns that impact it, develop financial estimates, and make strategic choices.

GPV is the entire dollar value of orders processed through the platform in the quarter, including some applications and channels for whom a revenue-sharing agreement is in place, net of refunds and inclusive of transport and handling, duty, and value-delivered taxes. The gross payments value (GPV) does not indicate the company’s revenue. The volume of GPV enabled by the platform, on the other hand, is a sign of merchant success and platform strength.

Factors Affecting the GPV and Comparability of Results

Merchant Solutions: The amount of GPV enabled by the company’s platform is also inversely proportional to the company’s merchant services revenues. In the year ending December 31, 2021, compared to the same period in 2020, merchant solutions revenues climbed by 45%. This rise was due to sustained consumer trends following the COVID-induced eCommerce acceleration, an increase in the number of merchants utilizing our platform, an increase in currency conversion fees, improved pricing, and merchant adoption of Shopify Payments. These variables resulted in $86 billion more GPV being processed by Shopify Payments in 2021 compared to the same time in 2020, indicating a 46% increase year over year.

Seasonality: The degree of GPV that merchants facilitated through the platform is directionally connected with the company’s merchant solutions revenues. During the fourth quarter holiday season, merchants often handle more GPV. As a result, their merchant solutions sales have typically been stronger in the fourth quarter than in previous periods.

Cost of Merchant Solutions: When compared to the same time in 2020, the cost of merchant solutions grew by 56.3% for the year ending December 31, 2021. The increase was mostly due to higher payment processing and interchange costs as a consequence of increased GPV handled by Shopify Payments.

Trend

Going forward, the company anticipates more normalized GPV growth against a more measured macro environment in comparison to 2021, but also that COVID-19-driven changes in merchant and consumer behavior in 2020 and 2021 will continue to expand the opportunities for entrepreneurship and digital commerce.

Revenues from merchant solutions are inversely proportional to merchants’ gross payments volume (GPV). The continuous influence of the COVID-19 pandemic, which has expedited the transition of shopping patterns to e-commerce, has resulted in a significant increase in merchant solutions revenue in recent quarters. The firm thinks that, as a consequence of the continuing expansion of merchant solutions offerings, their business will become more seasonal in the future, and that previous trends in the industry may not be a fair forecast of future performance.

Observation

Beginning in March 2020, the firm saw continued robust growth in GPV, boosted by COVID-19 limitations, as consumers sought out methods to buy from a safe distance, employing e-commerce and taking advantage of options like curbside pickup and local delivery. The momentum continued, albeit at a reduced rate, during the fiscal year ended December 31, 2021, as GPV increased compared to the previous fiscal year.

The corporation facilitated GPV of $277 billion and $191 billion for the years ending December 31, 2021, and 2020, respectively. They saw a continuous rise in GPV in the year ending December 31, 2021, thanks to the tailwinds of the move to eCommerce, which was enhanced by COVID-19 in 2020.

About the company

Shopify is a leading provider of key internet infrastructure for commerce, with proven solutions to help you establish, develop, promote, and manage any size retail business. Shopify improves commerce for everyone by providing a platform and services that are designed for ease of use and dependability, while also providing a better shopping experience for customers worldwide. The company’s headquarters are located in Ottawa, Ontario.

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