PayPal profit tops estimates as pandemic drives online spending to record levels

PayPal Holdings Inc beat Wall Street estimates for quarterly profit, with a coronavirus-driven shift to online shopping and digital transactions driving record levels of payment volumes for both the quarter and the year.
PayPal said it was expecting an addition of about 50 million active users in 2021 and forecast annual revenue of about $25.5 billion, well above the $21.4 billion estimated by analysts. Its shares were up 5% in trading after the bell.
“At the beginning of the pandemic, consumers amid lockdown had no choice but to do all of their shopping online,” Chief Executive Officer Dan Schulman said.
“Today, the vast majority of consumers state that post pandemic, they will continue to shop online at their current elevated levels because it is more convenient, easier and saves time,” Schulman added.