Digital payments group PayPal Holdings Inc raised its profit expectations on Wednesday after publishing its better-than-expected quarterly outcomes, driven by development in clients and payment volumes.
The San Jose, California-based organisation, beat Wall Street’s outlook for both profit and revenue in the second quarter and raised its entire year adjusted earnings outlook from $1.74 per share to $1.79 per share, to a scope of $1.80 per share to $1.84 per share.
PayPal shares surged 2.9 percent to $60.50 in after-hours trading.
Since isolating from eBay Inc in 2015, PayPal has been making more partnerships and making acquisitions in a struggle to get an edge over rivals in the very competitive digital payments market.
On a telephone call with analysts, Chief Executive Officer Dan Schulman indicated efforts PayPal has made to improve client experience, particularly on mobile gadgets, and gives it has signed with Chinese digital provider Baidu Inc and No. 2 U.S. loan specialist Bank of America Corp to grow its client base.
Not long ago PayPal had dealt with JPMorgan Chase and Co. and, Apple Inc.
The organisation included 6.5 million accounts in the second quarter, up 80 percent from the year-prior. It is the biggest quarterly growth in three years.
The organisation handled $1.8 billion in entire payment volumes, up 23 percent from the second quarter of 2016. Mobile payments grew 50 percent to about $36 billion.
Volumes at Venmo, PayPal’s mobile peer-to-peer payment application popular with younger clients which dramatically increased to $8 billion.
The organisation is trying to leverage the application more, by enabling customers to use Venmo to pay at U.S. merchants who process fees through PayPal.
PayPal is keeping up an objective to make clients use its service twice every week, on average, something Schulman announced is “within our reach.”
For the second quarter, it published adjusted earnings of 46 cents per share, more than the average analyst guesstimate of 43 cents, according to Thomson Reuters I/B/E/S.
Income rose 18.3 percent to $3.14 billion, beating analysts’ average outlook of $3.09 billion.