PYPLNasdaqServices-Business Services, NECUS GAAP · USD

PayPal Holdings, Inc.

PayPal Holdings, Inc. operates a global digital payments network that connects consumers and merchants for online and in-person commerce, money transfers, and related financial services. Its platform includes the PayPal and Venmo brands, along with checkout, processing, buy now, pay later, and merchant tools across roughly 200 markets.

Revenue33.2bn USD
+4.3 %y/y
Operating profit (EBIT)6,065m USD
+13.9 %y/y
EBIT margin18.3%
+1.5 ppy/y
Net income5,233m USD
+26.2 %y/y
Free cash flow5,564m USD
−17.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

010203040bn USD2020: 21.5 bn USD2020: EBIT 3.3 bn USD20202021: 25.4 bn USD2021: EBIT 4.3 bn USD20212022: 27.5 bn USD2022: EBIT 3.8 bn USD20222023: 29.8 bn USD2023: EBIT 5.0 bn USD20232024: 31.8 bn USD2024: EBIT 5.3 bn USD20242025: 33.2 bn USD2025: EBIT 6.1 bn USD202533.26.1
RevenueOperating profit (EBIT)

Business

Share of revenue
Consumer payments40 %

Digital wallets, checkout, peer-to-peer transfers, and consumer payment tools.

Merchant payments35 %

Branded and unbranded checkout, processing, and merchant acceptance services.

Value-added services10 %

Gateway, subscription, referral, and partnership-related services.

Credit and BNPL10 %

Consumer and merchant credit products, including buy now, pay later.

Other transaction services5 %

Currency conversion, instant transfers, and cryptocurrency-related fees.

Products

Reported · share of revenue
89.8%10.2%FY2025100 %
  • Transaction Revenue89.8 %
  • Revenues From Other Value Added Services10.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

PayPal serves both consumers and merchants through a two-sided payments network. Consumers use the platform to shop, pay, send money, and manage balances, while merchants use it to accept payments, improve conversion, and access risk and financing tools.

Consumers

Individuals using PayPal and Venmo to shop, send money, hold balances, and manage payments.

Merchants

Online and in-person sellers that accept PayPal-branded or unbranded payments and use merchant tools.

Large enterprises

Enterprise merchants buying checkout, processing, payouts, and risk management capabilities.

Small and medium businesses

SMBs using PayPal for easy acceptance, cross-border reach, and conversion support.

Credit users

Consumers and merchants using BNPL and other credit-linked offerings.

Strategy

PayPal’s strategy centers on expanding the utility of its two-sided network across more commerce channels, payment methods, and use cases. It also emphasizes trust, security, and product breadth so consumers and merchants can use the platform for checkout, transfers, financing, and value-added services.

Broaden commerce acceptanceMedium term

More acceptance points increase network utility for both consumers and merchants.

Deepen merchant monetizationMedium term

Merchant services and value-added tools increase platform relevance beyond basic payments.

Extend consumer engagementMedium term

More consumer use cases support transaction frequency and account retention.

Support credit and financing offeringsMedium term

Credit products add use cases but require funding, underwriting, and liquidity discipline.

Geography

Q1/2026

PayPal operates globally and reports activity across approximately 200 markets, with services available in multiple currencies and payment corridors. The company’s cross-border model makes geography important because transaction mix, local regulation, and currency conversion all affect how the platform is used and monetized.

United States58 %
Other countries (US filing)42 %

Share of the revenue the company reports by geography.

Risks

PayPal faces cybersecurity, fraud, and platform reliability risks because it moves money and stores sensitive customer data at scale. It also faces regulatory, custody, and funding risks tied to its credit products, cryptocurrency offerings, and international licensing structure, which can affect operations and customer trust.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cybersecurity and security vulnerabilities1Cryptocurrency custody and reserve risk2Regulatory and licensing complexity3Credit funding and liquidity needs4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cybersecurity and security vulnerabilitiesImpact: HighLikelihood: Medium

    The platform handles payments, balances, and personal data across a large network.

    Exposure: Consumer and merchant payment flows

  2. Cryptocurrency custody and reserve riskImpact: HighLikelihood: Medium

    Customer crypto assets and PYUSD reserves rely on third-party custodians and issuers.

    Exposure: Crypto offerings and stablecoin-related services

  3. Regulatory and licensing complexityImpact: MediumLikelihood: Medium

    Cross-border operations require compliance with multiple local payment regimes.

    Exposure: Singapore-based international services and local branches

  4. Credit funding and liquidity needsImpact: MediumLikelihood: Low

    Loans receivable and credit products require ongoing funding sources.

    Exposure: Consumer and merchant credit portfolios

  5. Competition in digital paymentsImpact: Medium

    Consumers and merchants can switch to other wallets, processors, and checkout options.

    ExposureCheckoutP2PMerchant acceptance

Accounting

Judgemental items
Revenue recognition and principal-agent assessment

Determines whether transaction activity is reported gross or net and affects revenue comparability.

Impact: Can materially change reported net revenues

Incentive accounting

Consumer and merchant incentives may be treated as revenue reductions or accrued obligations.

Impact: Affects revenue timing and margin presentation

Allowance for transaction and credit losses

Credit products and payment risk require estimates for expected losses.

Impact: Affects provisions and balance sheet reserves

Crypto custody and reserve-related contingencies

Third-party custodians and reserve assets introduce valuation and loss-estimation issues.

Impact: Can affect liabilities, disclosures, and risk reserves

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026