PYPL
PayPal Holdings Inc
Paypal's Business Model
How Do They Make Money?Paypal's mission is to revolutionize commerce globally.
They make money really one major way... through Transaction fees.
Transaction feeds make up $28 of the $31B in revenue.
PayPal charges merchants a fee when a customer pays using:
PayPal Checkout (pay with PayPal wallet, pay later, card stored, etc.)
Braintree (PayPal’s “behind-the-scenes” card processing for apps/websites)
Venmo merchant payments (Venmo used at checkout)
Typical structure: % of the transaction + a fixed fee. Cross-border transactions cost more.
Then the other way is from "Revenues from other value added services":
This includes products that sit on top of payments, like:
PayPal Complete Payments / advanced checkout features
Fraud prevention + risk tools
Chargeback/dispute handling services
Subscription billing, invoicing, payout tools
Merchant financial services / working capital-like products (where available)
I'm not seeing anything in the annual report on PayPal Pay Later. I'm curious how much revenue that generates... but I'm in San Antonio for my dayjob and have to run out to an event, so this is my reminder to edit this later!
Hope everyone is having a great week!