Online payment firm PayPal has reported a 17 per cent increase in revenue during the fourth quarter of 2015, up to $2.6bn (£1.8bn), while revenue for the year grew by 15 per cent to $9.2bn. The company also saw an increase in the number of customers using its services on a mobile device, similarly to Facebook which also reported tonight.
The firm, which was spun off from online retail group eBay last summer, beat expectations, with analysts projecting that the firm would post quarterly revenue of $2.51bn.
The group grew its active account base by 6.6m in the fourth quarter, and ended 2015 with 179m active customer accounts. The company also said it had gained market share, processing $82bn in total payment volume, $20bn of which was mobile payment volume. This represents an increase of 45 per cent in mobile usage.
"We exited 2015 with great momentum," said president and chief exec Dan Schulman. "Our strong results reflect PayPal's progress in delivering on our strategy to drive the digital payments revolution. In the face of a slow global economy and foreign exchange headwinds, PayPal exceeded its full year revenue, earnings, and free cash flow commitments to shareholders.
As money becomes digital and the world goes mobile, we see tremendous opportunity ahead to expand our leadership, transform the way people move and manage their money and deliver increased value to shareholders.
PayPal also announced that its board of directors has authorised a new share repurchase program, which could see the company repurchase up to $2bn in outstanding common stock.
"We have proven our ability to generate cash, and this share repurchase authorization demonstrates our confidence in our strategic plan and long-term growth," said finance chief John Rainey.
Shares in the company rose by over six per cent in after hours trading.