What is TPV and how important is it for digital businesses?

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TPV , or Total Payment Volume , is a device used to process payments in physical and online stores. It facilitates transactions, accepts different forms of payment and helps with the financial management of the business. Understand how TPV can optimize your sales and improve the customer experience.
Financial institutions, fintechs and payment poland mobile database have extremely important market data stored in their systems. Such data is extremely relevant, since it is a strong indicator of consumer behavior, consumption and economic status, etc. In these terms, knowing what TPV is becomes extremely important.

To understand what this indicator means, read this content until the end and learn about the relevance of this calculation for the global economy and how much the financial health of the market as a whole is linked to it.

What is TPV?
magnifying glass and graph that goes upTPV stands for Total Payment Volume and allows us to have a view of the total amount moved by a company in a given period . It informs the total volume of payments made by a given method, whether intermediaries, gateways or any other.

How is TPV calculated?
The TPV calculation is done by adding all the amounts transacted in the period in which you want to measure . Let's assume that a payment gateway called x needs to find out its TPV for the year 2024. In this case, the following is added:

the total amount transacted in 2024 on the credit card;
the total amount transacted in 2024 on Pix;
the total transacted in 2024 on the debit card.
Adding the 3 indexes together we have the TPV: a number that is the ultimate example of how to use metrics to benefit your business .

Why is POS important for your business?
analysis reportTPV is extremely relevant as an indicator of consumer behavior, sales tracking and the financial market. By analyzing this index monthly, it is possible to know, for example, which method has grown the most and which is the most used.

Furthermore, it is an important parameter of market participation, what we call market share in Marketing . This is the indicator that helps to understand the positioning of each solution in relation to its market competitors — helping to outline a strategic vision of the business.