PayPal experienced a pandemic boost, posting one of the strongest quarters in its history Monday, driven by new users and a record number of payment transactions.
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"Our growth reinforces the essential role we play in our customers’ daily lives during this pandemic," Paypal president and CEO Dan Schulman said in the earnings release.
Overall, the company had 4 billion payment transactions in the quarter and reported 15.2 million new net active accounts, ending with a total of 361 million active accounts.
Still, the stock declined in extended trading after the company's forecast fell short of expectations.
This after reporting third-quarter net income of $1.02 billion, or 86 cents a share, and net revenue of $5.46 billion, up 25 percent year over year compared to $4.37 billion a year ago. Paypal's total payment volume came in at $247 billion, up 36% year-over-year compared to $178 billion a year ago.
Approximately $44 billion in total payment volume was processed by Venmo, growing 61 percent, while PayPal's merchant services grew 40 percent.
PayPal forecasts revenue for Venmo will approach $900 million in 2021, driven by investments in new capabilities, and reach profitability in 2022.
In addition, Schulman said the PayPal's cryptocurrency feature, which was announced last month, was rolled out to 10% of the company's customers in the United States and has seen strong early demand. To meet that demand, the company will increase its $10,000 purchase limit per day to $15,000 per day, which will be rolled out throughout the United States in the next two to three weeks and the Venmo platform in the first half of next year.
Meanwhile, Venmo's first credit card, also announced last month, is expected to fully roll out to all PayPal customers in the first quarter of 2021 which Schulman says will be a "true extension of the Venmo app and fully linked to its capabilities."