(Reuters) - Payment processor PayPal Holdings Inc (>> Paypal Holdings Inc) reported higher-than-expected quarterly profit and revenue on Wednesday, helped by an increase in payment processing volumes and customer additions.
The company, which also raised its full-year profit forecast to $1.28-$1.33 per share from $1.26-$1.31, said its board authorized a $5 billion share buyback program.
PayPal's shares jumped nearly 7 percent to $47.45 in after-hours trading.
The San Jose, California-based company has been expanding partnerships and acquiring new services to gain advantage over rivals in a highly competitive digital payments market.
PayPal struck a deal with Alphabet Inc's Google (>> Alphabet Inc) last week in a move to bring its payment wallet to brick-and-mortar stores.
Consumers will be able to use their PayPal accounts with Google's mobile payments platform Android Pay at retailers such as WalGreens Boots (>> Walgreens Boots Alliance Inc) and Dunkin' Donuts (>> Dunkin Brands Group Inc).
PayPal, which spun off from e-commerce firm eBay Inc (>> eBay Inc) in 2015, also agreed to buy Canadian bill payment processor TIO Networks Corp (>> TIO Networks Corp) for about $233 million in February.
The company's net income rose to $384 million, or 32 cents per share, in the first quarter ended March 31, from $365 million, or 30 cents per share, a year earlier.
On an adjusted basis, PayPal earned 44 cents per share, above the average analyst estimate of 41 cents, according to Thomson Reuters I/B/E/S.
Revenue rose to $2.98 billion from $2.54 billion, beating analysts' average estimate of $2.94 billion.
PayPal's total payments volume jumped 22.5 percent to $99.33 billion, beating research firm FactSet StreetAccount's estimate of $99.20 billion.
Active customer accounts rose 10.3 percent to 203 million.
PayPal's mobile payments volume rose 51 percent to about $32 billion in the quarter. Payment volumes at Venmo, a mobile peer-to-peer payment platform popular with younger customers, more than doubled to $6.8 billion in the first quarter.
Up to Wednesday's close, the company's stock had risen 12.5 percent since the start of the year.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Martina D'Couto)