PayPal Holdings Inc. reported record earnings during the second quarter as consumers and merchants rapidly embraced a shift towards digital payments amid massive retail shutdowns and a surge in remote, e-commerce purchases due to the COVID-19 pandemic.

The San Jose, California-based company reported a 49% increase in adjusted earnings to $1.07 per share compared with the year-ago quarter.

Revenue increased 25% year-over-year to $5.26 billion.

"Simply put, our business has never been more relevant and important than it is today," Dan Schulman, president and chief executive officer at PayPal, told analysts on the company's quarterly conference call.

Total payment volume rose 30% to $222 billion in the quarter. Schulman said business during the quarter was so strong that it rivaled volumes usually seen during the Black Friday weekend through Cyber Monday.

PayPal reported a 137% year-over-year increase in net new active accounts to a record 21.3 million in the quarter, the most in its history.

PayPal reported 3.7 billion payment transactions, up 26% from a year ago.

The company reported 39.2 payment transactions per active account on a trailing 12-month basis, which was flat compared with year-ago figures.

The company reported that Venmo, its social payments unit, processed $37 billion in TPV, an increase of 52% from the year-ago period.

The company reinstated and raised its guidance for the third quarter and fiscal year, forecasting third-quarter revenue growth of 23% to 25%. Fiscal 2020 earnings per-share growth is expected to be about 25%, while revenue growth is expected in the range of 20% to 22%.