PayPal beats estimates on online spending boost
July 28 (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)
