What happened

Shares of PayPal Holdings (PYPL 0.33%) climbed 4.3% to a new closing high of $192.51 on Thursday, following the online payment processing giant's strong second-quarter results. 

So what

PayPal's total payment volume jumped 29% to $222 billion, while its revenue leapt 22% to $5.3 billion. The gains were fueled in part by a surge in e-commerce sales during the COVID-19 crisis, as stay-at-home orders and other social distancing guidelines drove more people to shop online than ever before.

"In the midst of the COVID-19 pandemic, digital payments have become more important and essential than ever," CEO Dan Schulman said in a press release. "Our record performance in the second quarter -- our strongest quarter ever -- reaffirms the relevance of PayPal in the unfolding digital future."

A person is pointing to an upwardly sloping digital chart.

PayPal's stock hit a record high on Thursday. Image source: Getty Images.

Better still, PayPal is growing more profitable as it expands its revenue base. Its adjusted operating income and earnings per share both surged 49%, to $1.5 billion and $1.07. PayPal's cash flow generation was even more impressive; its operating and free cash flow soared 103% and 112%, respectively, to $2.4 billion and $2.2 billion.

Now what 

PayPal is clearly one of the winners in the migration away from cash and toward digital transactions. COVID-19 is only serving to accelerate this global trend, and PayPal is doing its best to make the most of its current opportunities.

"This is our time," Schulman said during a conference call with analysts. "We intend to seize the moment."