PayPal shares rose after the company announced strong quarterly results indicating that its profits tripled with the increasing adoption and use of electronic payment methods, as PayPal recorded net revenue of $ 1.57 billion for the quarter ending in December,
Moreover, the company’s profit is more than tripled from net revenues in 2019, which amounted to only 507 million dollars.
The company’s earnings per share on GAAP principles rose to $1.32, beating expectations of about $0.66 per share, and the company’s revenue increased 23% to $6.1 billion during the past quarter, and added 16 million new active accounts to its subscribers, bringing the total accounts to 377 million accounts.
PayPal expects fiscal year 2021 revenue to reach $25.5 billion, exceeding expectations and achieving a steady growth rate of more than 20%. The company expects GAAP earnings of about $0.7 per share, compared to the $0.07 it achieved during the same period last year.
The online payments giant PayPal will continue to benefit from the wave of online shopping even after the pandemic crisis has passed, and the company’s CEO, speaking about the reality of the new digital currency transactions, said that the old current financial system is “outdated” as he described it, and that transactions must take place within minutes, not days.
PayPal turned to the cryptocurrency market last October when it announced that it would allow its customers to pay with cryptocurrency starting in 2021 and partnered with startup Paxos.
The cryptocurrency market is a big goal for PayPal in developing its business and services, and the company added that it will integrate with the Venmo platform for digital transactions in the coming months. According to the trading market, PayPal shares rose by 5.68% to reach $251.9 during pre-market trading on Thursday.