Online payments company PayPal has reported strong earnings for Q3, thanks to the rise in e-commerce prompted by the pandemic.
PayPal reports “one of the strongest” quarters in his Q3 results: Company reports “one of the strongest” quarters
The company described the results for the quarter ending 30 September as showing the “strongest growth in total payment volume and revenue in PayPal’s history”, with total payment volume growing by 38%.
Revenue grew by 25%, reaching $5.46bn during the quarter, beating analysts’ expectations.
PayPal added 15.2 million net new active accounts, an increase of 22%, bring the total number of active accounts to 361 million.
PayPal recorded 4 billion payment transactions, up 30%, while Venmo, a mobile payment service owned by PayPal, saw transactions grow by 61%. In October, Venmo introduced the Venmo Credit Card, issued by Synchrony and powered by the Visa network.
As well as a boom in e-commcerce, the PayPal results also suggest that consumers are increasingly turning to fintech products like PayPal’s when making purchases.
“PayPal’s third quarter was one of the strongest in our history,” said President and CEO Dan Schulman. “Our growth reinforces the essential role we play in our customers’ daily lives during this pandemic. Going forward, we are investing to create the most compelling and expansive digital wallet that embraces all forms of digital currencies and payments, and operates seamlessly in both the physical and online worlds.”
Looking to the next quarter, PayPal expects revenue to grow by 20%–25%. After the announcement, Paypal’s shares fell on Monday after its “holiday-quarter earnings outlook came up light” according to MarketWatch.
For 2020 as a whole, PayPal expects total payment volume growth of around 30%, and revenue to grow by 20%–21%.
“Our business again outperformed with sustained momentum through the third quarter. The strong results we are reporting today demonstrate the strength of our diversified platform, the scalability of our business, and our earnings power” said PayPal CFO and EVP, Global Customer Operations John Rainey.
Last month, PayPal announced that customers will be able to buy and sell and hold cryptocurrencies including Bitcoin through their PayPal accounts.