Total Payment Volume (TPV)
Formula
Sum of the value of all payments processed in the period
Definition
Total Payment Volume measures the total value of payments processed through a platform over a period.
TPV is a measure of transaction volume rather than revenue. Payments businesses typically earn a portion of TPV through transaction fees or other forms of monetization.
Interpretation
Growth in TPV indicates increasing payment activity on the platform and can result from more customers, more transactions, higher transaction values, or a combination of these factors.
TPV should be evaluated alongside take rate and Gross Profit Take Rate to understand how effectively payment volume converts into company economics.
In MetricFrame
TPV is a user-supplied volume metric. MetricFrame uses it to calculate KPIs including take rate, Gross Profit Take Rate, run-rate TPV, year-over-year growth, and TTM year-over-year growth.