PayPal reports better-than-expected results in Q2.

(Reuters)- PayPal reported second-quarter profits on Wednesday that exceeded analysts' expectations, but estimated that third-quarter revenue may fall short of expectations.

The company's net income rose to $526 million, or $0,44 per share, compared to $411 million, or $0,34 per share, a year earlier. Revenue increased from $3,13 billion to $3,86 billion.

On an adjusted basis, PayPal reported earnings of $0,58 per share, compared to analysts' expectations of $0,57, according to Thomson Reuters I/B/E/S data.

For the third quarter, PayPal expects revenue between $3,62 billion and $3,67 billion, compared to analysts' expectations of $3,71 billion.

Since separating from eBay in 2015, PayPal has struggled to become more than just a payment button on e-commerce websites.

The company has been expanding its service portfolio through an aggressive strategy of partnerships and acquisitions as it seeks to stay ahead of rivals in the increasingly competitive digital payments market.

In May, PayPal announced the purchase of the Swedish company iZettle for $2,2 billion, its largest acquisition ever. The following month, the company announced an agreement to buy the predictive analytics platform Jetlore, the fraud prevention startup Simility, and HyperWallet Systems, a company that helps individuals and small businesses accept electronic payments.

PayPal processed $139 billion in payments in the second quarter, a 29 percent increase over the same period last year.