Key Partners
- Card networks, processors and issuing banks that fund each payment (FACT 10-K).
- Independent chartered bank behind US PayPal Credit and PayPal/Venmo credit cards (FACT).
- Blue Owl funds — ~$7B of US Pay in 4 loans over two years (FACT).
- A third-party issuer behind the PayPal USD (PYUSD) stablecoin (FACT 10-K).
- Merchant and AI partners — Temu, Home Depot Canada, OpenAI, Perplexity (FACT).
Key Activities
- Process ~6.8B payments per quarter (FACT Q2 2026).
- Fraud and risk — transaction losses ~7 basis points of volume (FACT).
- Underwrite credit and BNPL; sell receivables to investors (FACT).
- Unify Braintree, PayPal Complete Payments and Hyperwallet (FACT).
- Cloud migration, AI in software delivery, three fewer layers (FACT).
Key Resources
- Brands — PayPal, Venmo, Braintree, Xoom, Hyperwallet, Honey, Paidy (FACT 10-K).
- 439M active accounts; 228M monthly actives (FACT).
- Two-sided purchase data, now sold as PayPal Ads (FACT).
- Money transmitter licenses + Luxembourg credit institution (FACT).
- $15.3B cash and investments; ~23,800 people (FACT).
Value Propositions
- Pay without retyping a card; buyer and seller protection (FACT).
- Pay Later — BNPL volume over $40B in 2025, up 20%+ (FACT Annual Report).
- Venmo — free P2P plus debit card and Pay with Venmo (FACT).
- Braintree — enterprise processing + payouts, risk, optimization (FACT).
- Coming bets — agentic checkout in AI chats, PYUSD, digital identity (FACT).
Customer Relationships
- Self-serve apps for consumers and small sellers (FACT).
- Buyer protection, dispute resolution, cash-back rewards (FACT 10-K).
- Venmo Debit + Pay with Venmo users — 9×+ revenue of P2P-only (FACT).
- Transactions per active account ex-PSP up 7% (FACT Q2 2026).
- Dedicated technical sales for large merchants (FACT).
Channels
- PayPal button on merchant checkouts, online and in apps (FACT).
- Venmo peer-to-peer invites (viral growth).
- Debit card + tap to pay — spend up 60%+ in Q2 2026 (FACT).
- Pay later shown earlier in checkout (Home Depot Canada) (FACT).
- AI chats — Perplexity live; ChatGPT limited after OpenAI pullback (FACT / SECONDARY).
Customer Segments
- Consumers — 439M active accounts, 228M monthly active (FACT).
- Highest-value consumer cohort — majority of volume (FACT).
- Venmo users in the US (FACT).
- Small and mid-size merchants on the PayPal button (FACT).
- Enterprises, marketplaces and platforms via Braintree (FACT).
Cost Structure
- Transaction expense $16.0B in 2025 (FACT).
- Transaction expense ~0.90% of volume in Q2 2026 (FACT).
- Tech & development $3.1B; sales & marketing $2.3B (FACT 2025).
- Transaction and credit losses $1.7B in 2025 (FACT).
- $1.5B+ gross run-rate savings over 2–3 years (FACT).
- Possible $120–140M transformation charge in 2H 2026 (FACT).
Revenue Streams
- Transaction revenue $7.83B of $8.68B in Q2 2026 (FACT).
- Take rate 1.61% of volume, down 7 bps (FACT).
- Transaction margin 44.9%; TM$ $3.9B (+1%) (FACT).
- Credit and BNPL — growing at least 2× the company (FACT).
- Venmo revenue ~$1.7B in 2025, +~20% (FACT).
- Interest on customer balances $281M, down with rates (FACT).