Internet auction powerhouse eBay on Wednesday reported that quarterly revenue and profit boomed due in large part to its PayPal online financial transaction service.

The San Jose, California-based company said that net income climbed 20 percent to $570 million on revenue that soared 29 percent to $3.28 billion in the quarter to March 31.

"The first quarter was a strong start to the year for us with momentum continuing in our Marketplaces, PayPal and GSI Commerce (interactive marketing) businesses," said eBay Inc. chief executive John Donahoe.

"We believe that innovation in retail today is technology driven, and consumers are embracing smarter, easier, better ways to shop."

PayPal ended the quarter with 109.8 registered accounts in a 12 percent increase from the same period a year earlier. Revenue at the service was 32 percent greater than the same three months in 2011, according to eBay.

PayPal handled $34 billion worth of transactions in the quarter.

EBay's Marketplaces business grew to $16 billion, not counting car sales.

The price of eBay stock rose more than six percent to $38.18 in after-market trade that followed release of the earnings results.