PayPal turned in one of its strongest quarters ever for the three-month period ending September 30, 2020. The company said it now has 361 million active accounts on its platform. On a trailing 12 months basis, PayPal said it is seeing roughly 40.1 payment transactions per active account.
In its latest financial release, PayPal reported revenue of $5.46 billion and earnings of $0.86 per share, up 25 percent and 121 percent compared to the year-ago period, respectively. Total payment volume, meanwhile, soared 36 percent YoY to $247 billion.
One key revenue driver was user growth. The financial services company said it added 15.2 million net new active (NNA) accounts during the quarter, an increase of 55 percent compared to the third quarter of 2019.
Looking ahead, PayPal said it expects revenue to grow between 20 percent and 25 percent in the fourth quarter. For the fiscal year, PayPal is expecting to add 70 million NNAs.
PayPal is one of several businesses that have capitalized on the ongoing Covid-19 pandemic as consumers stay at home and increasingly rely on the Internet to purchase goods. That’s expected to continue through the holiday quarter and with PayPal hopping aboard the cryptocurrency bandwagon, the future is looking plenty bright for the financial services company.