PayPal Inc. posted another strong financial performance during the second quarter, driven primarily by continued merchant and consumer adoption, the payments unit of parent eBay Inc. announced July 18.

PayPal’s revenue increased 26% for the quarter ended June 30, to $1.35 million from $1.07 million a year earlier.

PayPal closed the quarter with 113.2 million active registered accounts, up 13% from 100.3 million a year earlier, eBay said. PayPal's net total payment volume grew 20%, to $34.5 billion from $28.7 billion.

As a company, eBay reported $3.4 billion in revenue, up 26% from $2.7 billion. The company posted $730 million in net income, up 16% from $631 million a year earlier.

PayPal unveiled numerous partnership announcements during the quarter as it continued to grow, adding point-of-sale presence at Home Depot stores and expanding its traditional online-payment services into the mobile payments realm with PayPal Here.

Many other brand-name U.S. retailers also announced their intent to work with PayPal on point-of-sale initiatives.

The PayPal point-of-sale payment system gives shoppers the opportunity to pay using just their mobile phone number or a PayPal payment card and PIN. The company introduced the plan in Abercrombie & Fitch and Jos. A. Bank stores in the U.S. beginning in the quarter, eBay reported.

“Mobile continues to be a game changer,” John Donahue, eBay president and CEO, stated in the company’s earnings release. “We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012–that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago.”

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry