SAN JOSE, California: The online payment platform PayPal posted earnings of $1.22 per share in the first quarter of 2021, topping Wall Street projections of $1.01 per share.
The increase in earnings was attributed to the coronavirus pandemic, which fueled a surge in online shopping and digital payments which drove up payment volumes to record levels.
"Our strong first-quarter results demonstrate sustained momentum in our business as the world shifts into the digital economy," chief executive officer Dan Schulman said in a statement, as reported by Reuters.
PayPal, which had also reported record payment volumes in 2020, processed $285 billion in payments in the first quarter, a 50 percent increase compared to the year-ago period, as the pandemic forced more people to stay indoors, while shopping and paying bills online.
Venmo, a PayPal app that allows users in the United States to send money to each other, processed $51 billion in payments in the quarter, an increase of 63 percent year-on-year.
PayPal also recorded a 31-percent jump in revenues, topping estimates, and added 14.5 million new customers during the quarter.
The payments provider has projected a 30 percent increase in total payments volume in 2021, and said it hopes to add 5255 million new accounts during 2021.
The company had predicted in February that its active user base would swell by some 50 million in 2021.
According to Refinitiv IBES data, the company expects annual revenues and diluted earnings per share to also beat analyst estimates.