PayPal shares jumped nearly 5% after the market closed on Wednesday when the payments giant announced record revenues of $ 5.26 billion for the second quarter, saying it added 1.7 million new merchants during this period.
In a conversation that discussed the results, PayPal executives said that society has reached a "turning point" in terms of "the death of cash," noting that 70% of consumers now fear for their health when it comes to paying in stores .
"Consumers no longer want to deal with cash or payment methods that require physical contact at checkout," Schulman said.
He also cited an explosion in the use of PayPal-owned Venmo in the second quarter, saying that the popular payment app now has over 60 million users. Schulman noted that the use of Venmo had long been about social occasions ̵
Meanwhile, the company says it is seeing an explosion in online payments from new cohorts and industries, particularly the elderly and online healthcare services.
"The pace of e-commerce has accelerated by several years in one quarter," said PayPal CFO John Rainey.
In response to these trends, the company says it is investing heavily to improve its digital wallet, which it hopes will become a daily part of the lives of many consumers. PayPal is particularly focused on promoting the use of QR codes from sellers and Venmo users.
The company also hopes to start earning more money from Venmo – which has brought PayPal many users but little in the way of revenue – in part through products such as direct deposits and credit cards.
PayPal's blowout quarter also led the company to reintroduce financial guidance for the rest of the year after, like many other companies, withdrawing guidance due to the pandemic.
On Wednesday, the company said it expected earnings to grow at 25% for the rest of the year, and earnings per share to swell by 45% (25% on a non-GAAP basis).
One topic that PayPal executives did not discuss was cryptocurrency. The company largely expects to make Bitcoin and other digital currencies available this year, in partnership with a startup called Paxos.
While they did not mention Bitcoin directly, Rainey may have referred to it in the citation of the impending launch of "other financial services I will not go into today."
PayPal shares traded close to $ 185 from 19 : 00 ET after opening the day around $ 179.
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