PayPal Holdings Inc. boosted its annual profit forecast after it continued adding new accounts at a near record pace in the third quarter, helped by the ongoing boom in online shopping.

As retailers around the world face a raft of new lockdown orders to stem the spread of the coronavirus pandemic, the payments company added 15.2 million net new active accounts, a 55 per cent increase from a year ago.

Key Insights

• Spending on its platform surged 36 per cent to US$247 billion, topping the US$232 billion average of analyst estimates. That includes US$44 billion in payments made on PayPal’s person-to-person platform Venmo, which posted its best quarter ever in the three months ended Sept. 30.
• PayPal now sees adjusted profit climbing 27 per cent to 28 per cent this year, more than the 25 per centjump previously forecast. The firm still expects to add 70 million active accounts this year, but it now anticipates revenue for the full year to climb by 21 per cent to 22 per cent excluding the impact of currency swings, compared to the 22 per cent it previously expected.

Market Reaction

• PayPal shares rose 1.6 per cent to US$190.75 at 4:22 p.m. in late trading in New York. The stock has surged 74 per cent this year, outpacing the 21 per cent advance of the S&P 500 Information Technology Index.