Facebook revenue continues to soar, but payments revenue plays little part in that — it’s all about the advertising.
Payments revenue was $202 million, down 6% from the prior quarter, and down 18% year over year. Total revenue was a different story, up 11% on the quarter and 40% over the previous year. Payments account for just 4% of the social network’s earnings, down from 5% last quarter and 8% last year.
Revenue per user also tells a sad tale for payments. Advertising revenue per user climbed to $2.83, up 8.4% quarter over quarter and 27.5% year over year. Payments revenue per user went in the opposite direction, falling to $0.13, down 13.3% quarter over quarter and down 27.7% year over year.
Despite the bad news for payments, this revenue decline could turn around when the social network allows payments to businesses in Messenger and in the main Facebook app. But since these payments may come in the context of advertising, particularly on the primary Facebook app, business payments may simply add to the swelling advertising revenue. Payments on Messenger are free to users and incur an undisclosed cost to Facebook.