The online payment provider giant PayPal has reported decent earnings for the second quarter, and it may continue amid the pandemic.
Due to the global health crisis, it looks like PayPal has stepped up its game as it has become a crucial factor when it comes to handling online payments.
A recent report last May showed a surge in user activity in PayPal with users of over 50 years old. In addition, they are looking into cryptocurrency to boost their presence in the digital payment world.
The seamless transition to digital payments
CEO Dan Schulman told Jim Cramer in an interview in CNBC’s Mad Money:
“What I think what’s happened is the world has accelerated from physical to digital across almost every industry.”
He further added that health institutions are taking advantage of telemedicine, and schools are shifting to remote learning platforms. Most of the retailers are also converting their brick-and-mortar businesses online and setting up contactless payment systems.
Restaurants are also relying mostly on take-out and delivery service, which also involves the use of online payments, and PayPal has been dominant across all sectors.
Second-quarter earnings report a 22% revenue growth
Despite the ongoing pandemic, PayPal is also seeing a higher revenue forecast for the months to come.
The latest report estimates that third-quarter revenue growth would be on par with the second quarter, projecting 23%.
Their second-quarter operating highlights also said that they had 21.3 million new active accounts, and it became the strongest quarter in PayPal’s history.
As of this writing, the stock price of PayPal has been up more than 70% year-to-date.
With more online businesses emerging amidst this pandemic, PayPal will likely continue to become one of the most reliable payment providers in the world.