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.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDigital wallets, checkout, peer-to-peer transfers, and consumer payment tools.
Branded and unbranded checkout, processing, and merchant acceptance services.
Gateway, subscription, referral, and partnership-related services.
Consumer and merchant credit products, including buy now, pay later.
Currency conversion, instant transfers, and cryptocurrency-related fees.
Products
Reported · share of revenue- 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.
Individuals using PayPal and Venmo to shop, send money, hold balances, and manage payments.
Online and in-person sellers that accept PayPal-branded or unbranded payments and use merchant tools.
Enterprise merchants buying checkout, processing, payouts, and risk management capabilities.
SMBs using PayPal for easy acceptance, cross-border reach, and conversion support.
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.
More acceptance points increase network utility for both consumers and merchants.
Merchant services and value-added tools increase platform relevance beyond basic payments.
More consumer use cases support transaction frequency and account retention.
Credit products add use cases but require funding, underwriting, and liquidity discipline.
Geography
Q1/2026PayPal 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.
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.
- Cybersecurity and security vulnerabilitiesImpact: HighLikelihood: Medium
The platform handles payments, balances, and personal data across a large network.
Exposure: Consumer and merchant payment flows
- 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
- Regulatory and licensing complexityImpact: MediumLikelihood: Medium
Cross-border operations require compliance with multiple local payment regimes.
Exposure: Singapore-based international services and local branches
- Credit funding and liquidity needsImpact: MediumLikelihood: Low
Loans receivable and credit products require ongoing funding sources.
Exposure: Consumer and merchant credit portfolios
- Competition in digital paymentsImpact: Medium
Consumers and merchants can switch to other wallets, processors, and checkout options.
Exposure
Accounting
Judgemental itemsDetermines whether transaction activity is reported gross or net and affects revenue comparability.
Impact: Can materially change reported net revenues
Consumer and merchant incentives may be treated as revenue reductions or accrued obligations.
Impact: Affects revenue timing and margin presentation
Credit products and payment risk require estimates for expected losses.
Impact: Affects provisions and balance sheet reserves
Third-party custodians and reserve assets introduce valuation and loss-estimation issues.
Impact: Can affect liabilities, disclosures, and risk reserves
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Last updated: 24/09/2026