Payment processor PayPal Holdings reported higher-than-expected quarterly profit and revenue on Wednesday, helped by an increase in payment processing volumes and customer additions.
The company, which also raised its full-year profit forecast to $ 1.28-$ 1.33 per share from $ 1.26-$ 1.31, said its board authorized a $ 5 billion share buyback program.
PayPal’s shares jumped nearly 7 percent to $ 47.45 in after-hours trading.
The San Jose, California-based company has been expanding partnerships and acquiring new services to gain advantage over rivals in a highly competitive digital payments market.
PayPal struck a deal with Alphabet Inc’s Google last week in a move to bring its payment wallet to brick-and-mortar stores.
PayPal, which spun off from e-commerce firm eBay Inc in 2015, also agreed to buy Canadian bill payment processor TIO Networks Corp for about $ 233 million in February.
The company’s net income rose to $ 384 million, or 32 cents per share, in the first quarter ended March 31, from $ 365 million, or 30 cents per share, a year earlier.
On an adjusted basis, PayPal earned 44 cents per share, above the average analyst estimate of 41 cents, according to Thomson Reuters I/B/E/S.
Revenue rose to $ 2.98 billion from $ 2.54 billion, beating analysts’ average estimate of $ 2.94 billion.
PayPal’s total payments volume jumped 22.5 percent to $ 99.33 billion, beating research firm FactSet StreetAccount’s estimate of $ 99.20 billion.
Active customer accounts rose 10.3 percent to 203 million.
PayPal’s mobile payments volume rose 51 percent to about $ 32 billion in the quarter. Payment volumes at Venmo, a mobile peer-to-peer payment platform popular with younger customers, more than doubled to $ 6.8 billion in the first quarter.
Up to Wednesday’s close, the company’s stock had risen 12.5 percent since the start of the year.
NOW WATCH: The disturbing reason some people turn red when they drink alcohol
