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SAN JOSE, California – PayPal Holdings Inc has reported a better-than-expected quarterly profit and says it is on track to vastly exceed estimates of it’s full-year earnings.

The company says it has increased it’s number of clients during the quarter by 9.8 million, taking the total of current accounts to 295 million, a 16% gain.

Revenue rose to $4.38 billion, a gain of 19%.

Shares in San Jose-based PayPal on Wednesday, ahead of the report, closed down 0.72 cents or 0.74% at $96.64. Once the earnings report hit the wires, extended trading was pushing the share price several dollars higher.

“We had an excellent quarter financially and operationally, reporting 19% revenue growth, more than 200 basis points of operating margin expansion, accelerating TPV growth and nearly 10 million net new active accounts,” Dan Schulman, President and CEO of PayPal said in a statement accompanying the report.

“This quarter we also announced that we will be the first foreign payments platform to be licensed to provide online payment services in China, a very significant development that has the potential to meaningfully expand our addressable market,” he said.

Operating highlights for third quarter 2019

• 9.8 million net new active accounts, bringing total active accounts to 295 million accounts, up 16%.
• 3.1 billion payment transactions, up 25%.
• $179 billion in total payment volume (TPV), up 25%, or 27% on an FX-neutral basis.
• 39.8 payment transactions per active account on a trailing twelve months basis, up 9%.

In September, PayPal announced its plans to acquire a 70% equity interest in Guofubao Information Technology Co., Ltd. (GoPay), a holder of a payment business license in China. Upon closing, PayPal will be the first foreign payments company to be licensed to provide online payment services in China. The transaction is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions, Wednesday’s earnings report said.

In October, PayPal and Synchrony announced an agreement to expand and extend their strategic consumer credit relationship. As part of the agreement, Synchrony will become the exclusive issuer of a Venmo co-branded consumer credit card, which is expected to launch in the second half of 2020.