NEW YORK, Feb 4 — PayPal Holdings Inc beat Wall Street estimates for quarterly profit on Wednesday, with a coronavirus-driven shift to online shopping and digital transactions driving record levels of payment volumes for both the quarter and the year.
PayPal said it was expecting an addition of about 50 million active users in 2021 and forecast annual revenue of about US$25.5 billion, well above the US$21.4 billion estimated by analysts. Its shares were up 5 per cent in trading after the bell.
“At the beginning of the pandemic, consumers amid lockdown had no choice but to do all of their shopping online,” Chief Executive Officer Dan Schulman said.
“Today, the vast majority of consumers state that post pandemic, they will continue to shop online at their current elevated levels because it is more convenient, easier and saves time,” Schulman added.
Online payments have got a boost since the start of the pandemic as people stuck indoors rely on mobile apps for shopping and paying bills.
San Jose, California-based PayPal said 2020 was its strongest ever annual performance as it processed a record US$936 billion in payments.
US holiday sales jumped 8.3 per cent last year to record their best growth in at least 19 years, the National Retail Federation said last month.
PayPal’s processed payments in the latest quarter rose 39 per cent to US$277.1 billion, with an additional 16 million net new active customers.
Venmo, PayPal’s service that allows individuals in the United States to send each other money through an app, processed 60 per cent more in payments in the quarter.
Quarterly revenue rose about 23 per cent to US$6.12 billion, topping estimates.
The company reported adjusted earnings of US$1.08 per share in the fourth quarter ended December 31, higher than analysts’ average estimate of US$1 per share, according to Refinitiv IBES.
Schulman said PayPal saw an exceptional response for its new cryptocurrency offering. — Reuters
Source: Malay Mail
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