PayPal Holdings Inc has reported a substantial increase in profit for the second quarter of 2020, with a remarkable 86% surge compared to the same period last year. The surge in profit can be attributed to the widespread shift towards online spending prompted by the ongoing coronavirus pandemic.

For the quarter that concluded on June 30, PayPal disclosed net income of $1.53 billion, or $1.29 per share, in contrast to $823 million, or 69 cents per share, during the corresponding period in 2019. It is important to note that these figures include an unrealized investment gain of 58 cents per share. Furthermore, to address potential loan losses, the company took measures that led to an addition of 7 cents per share to loan loss reserves. However, this is a drop from the reserve addition of 17 cents per share observed in the first quarter of this year.

On an adjusted basis, PayPal’s net income reached $1.26 billion, or $1.07 per share, demonstrating a noticeable rise from $848 million, or 71 cents per share, in the second quarter of 2019.

The global implementation of lockdowns and restrictions due to COVID-19 has resulted in a significant increase in e-commerce spending. As people turned to online platforms to fulfill their essential and discretionary purchasing needs, companies like PayPal, which facilitate these transactions, have experienced significant gains. Even as physical stores begin to reopen around the world, the trend of increased e-spending is anticipated to continue.

Looking ahead, PayPal is expected to continue benefiting from the sustained growth of e-commerce in the coming months.

Helpful links:
PayPal’s official website: Access PayPal’s official website for more information on their services and offerings.
Online Payment in India: This article provides insights into the growth and potential of online payments in India, which can be useful in understanding the global expansion of e-commerce and its impact on companies like PayPal.