PayPal profit jumps 86% on pandemic-driven online spending shift

PayPal Holdings Inc reported an 86% jump in second-quarter profit on Wednesday as the e-commerce payments processor benefited from the shift to online spending amid the coronavirus pandemic.

Net income increased to $1.53 billion, or $1.29 per share, in the quarter ended June 30, from $823 million, or 69 cents per share, a year earlier.

The results reflected an unrealized investment gain worth 58 cents a share and included additional loan loss reserves amounting to 7 cents a share, down from the 17-cent reserve addition in the first quarter.

On an adjusted basis, the company said net income rose to $1.26 billion, or $1.07 per share, from $848 million, or 71 cents per share, a year earlier.

E-spending surged during lockdowns in multiple countries and those who facilitate that -- such as PayPal -- benefited as much as the e-tailers from whom consumers were buying their essentials and discretionary items. And they're likely to continue to benefit with predictions that higher e-spending will carry on, even as physical stores reopen worldwide.

Additional reporting by Sandra Halliday