PayPal Holdings has reported a third-quarter profit that beat analysts' estimates as the company signed up more new customers and volume of payments processed rose.

Net income rose to $436 million in the third quarter, from $380 million a year earlier. Revenue rose to $3.68 billion from $3.24 billion.

For the fourth quarter, PayPal expects revenue between $4.20 billion and $4.28 billion, in line with analysts' estimates of $4.21 billion estimate.

Shares of the company, which separated from e-commerce site eBay in 2015, were up 7% in trading after the bell on Thursday.

In September it completed the purchase of Swedish payments firm iZettle, its largest ever acquisition.

"As pleased as I am with our financials, the highlight of the quarter was our growth in net new actives and engagement," PayPal Chief Executive Dan Schulman said on a call with analysts.

The company added a record 9.1 million new active accounts in the third quarter, compared to an increase of 8.2 million a year earlier.

PayPal processed $143 billion in payments over the period, up 24% from a year earlier.

Venmo, its peer-to-peer payment app popular with younger consumers, processed $17 billion of payments in the third quarter, growing 78%.

"And while it is still early, our monetization efforts appear to be reaching a tipping point," Schulman said.

He added that 24% of Venmo users have now participated in a "monetizable action," up from 17% last quarter.