PayPal beats estimates on online spending boost

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FILE PHOTO: FILE PHOTO: PayPal app is seen on a smartphone in this illustration taken
FILE PHOTO: PayPal app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

July 28, 2021

(Reuters) – PayPal Holdings Inc reported better-than-expected quarterly results on Wednesday, benefiting from a pandemic-driven shift to online shopping and digital transactions and a rise in consumer spending as economies reopen.

San Jose, California-based PayPal processed a total of $311 billion in payments in the second quarter ended June 30, up 40% from a year earlier, and added 11.4 million net new active accounts.

The company said it now expects annual total payment volumes to rise between 33% and 35%.

PayPal has been among the big winners of the COVID-19 pandemic as people afraid to catch the virus used its payment services to shop and pay bills online from the safety of their homes.

The company reported a net income of $1.18 billion, or $1 per share, in the second quarter.

On an adjusted basis, PayPal earned a profit of $1.15 per share, compared with analysts’ expectations of $1.12 per share, according to Refinitiv data.

Total revenue rose 19% to $6.24 billion, above estimates of $6.27 billion.

Venmo, PayPal’s app that allows individuals in the United States to send and receive money, processed $58 billion in payments, up 58% from a year earlier.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli)