PayPal posted its best quarter as a public company amid an acceleration in the use of digital payments that it believes is irreversible.
PayPal executives said the company’s second-quarter results indicate the COVID-19 pandemic has moved society a crucial step closer toward the “death of cash,” with 70% of consumers now fearing that paying in stores could be unsafe.
“The world has moved to a digital-first economy and I don’t think there is any going back,” CEO Dan Schulman told MarketWatch. Without the pandemic, he noted, the acceleration in e-commerce penetration over the past three to five months could have taken three to five years.
For the second quarter, PayPal posted net income of $1.53 billion, or $1.29 a share, up from $823 million, 69 cents a share, a year earlier. Adjusted earnings per share came in at $1.07 a share, well ahead of analysts’ estimates of 87 cents a share.
Revenue increased 25% to $5.26 billion and payment volume rose to $222 billion from $172 billion. Analysts had expected revenue of $4.99 billion and $210 billion in payment volume.