PayPal Holdings Inc. Monday reported a third-quarter profit above Wall Street estimates, as more people used digital modes of payment to shop and transactions rose through its peer-to-peer payment service Venmo.

PayPal emerged as one of the big winners of the COVID-19 pandemic as businesses increasingly moved online and consumers preferred using phones and other digital means to pay bills and shop online.

The San Jose, California-based digital payments company's net income rose to $1.09 billion, or 92 cents per share, in the three months ended Sept. 30, from $1.02 billion, or 86 cents per share, a year earlier.

On an adjusted basis, PayPal earned $1.11 per share, above analyst estimates of $1.07 per share, according to IBES data from Refinitiv.

Net revenue in the third quarter rose over 13% to $6.18 billion.

The payments giant has been beefing up its offerings with acquisitions. In September, the company announced it was buying Japanese buy now, pay later (BNPL) company Paidy in a $2.7 billion deal, a month after rival Square Inc's $29 billion deal for Australian BNPL firm Afterpay. However, PayPal said last month it was not pursuing a buyout of digital pinboard site Pinterest Inc, after media reports said it was in talks to buy the social media platform for as much as $45 billion.

Shares of PayPal were up 4% in trading after the bell.