PayPal released earnings this past week. Growth in users continues at 10% with transactions per user growing 13%. All of this is driven by Venmo and Braintree while the rest of the business seems to struggle to grow at the same clip of previous years. Because the large percentage of Venmo transactions are free P2P transfers, PayPal has been seeing lower transaction margins in every quarter dating back to Q1 2015. Cause for concern? Well, growing revenues on a declining margin is never a good thing. However, the business continues to generate strong cash flow and is establishing itself as one of the key payment platforms. PayPal has stated margins should be flat year over year but keep a close eye to see how well PayPal is converting P2P users into paying users.