What happened

PayPal (PYPL 0.33%) reported its third-quarter earnings yesterday afternoon, and it appears that the market is happy with the results. As of 11 a.m. EDT on Thursday, the payment processing and fintech giant's stock price had risen by more than 7%.

So what

PayPal beat expectations on both the top and bottom lines. Not only was the company's $4.38 billion in revenue and $0.61 per share in earnings better than analysts had projected, but they represented strong year-over-year growth as well.

Woman holding a smartphone with dollar sign icons floating around it.

Image source: Getty Images.

Total payment volume (TPV) increased 25% from the prior-year quarter to $178.7 billion, and the average active account is now using PayPal for 9% more payment transactions. So not only is the company doing a good job of adding new users (9.8 million new active accounts for the quarter), but it's getting existing users to complete more of their everyday payment transaction needs on the platform.

Venmo has been a particularly strong area of growth for PayPal, and this quarter was no exception. The person-to-person platform processed over $27 billion of TPV during Q3, which represented a staggering 64% year-over-year growth rate.

Now what

PayPal's guidance for the rest of 2019 is higher than analysts had expected, and the company is now expecting adjusted earnings of $3.06-$3.08 per share. If PayPal continues to grow and is successful at monetizing its Venmo users, there could be much more room to grow in the years to come.