How Do They Make Money?

At PayPal Holdings, Inc., our mission is to revolutionize commerce globally.

We provide consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which may include a bank account, a PayPal or Venmo account balance, our consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products such as gift cards, and eligible rewards.

We help merchants connect with customers, increase conversion rates and sales, and grow their businesses in the markets where our services are available.

We provide large enterprises and small and medium businesses with online branded checkout solutions, including PayPal and Venmo; online unbranded payments processing, including Braintree and PayPal Complete Payments; our buy now, pay later solutions, which we refer to as PayPal Pay Later; in-person point of sale systems, including Zettle; business financing, including PayPal Working Capital (“PPWC”) and PayPal Business Loan (“PPBL”); payouts capabilities; and risk tools.

We operate a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets as of December 31, 2024.

We earn revenues primarily by charging fees for completing payment transactions for our customers and other payment-related services, which are typically based on the volume of activity processed on our payments platform.

We also generate revenue from customers for currency conversion, for instant transfers from their PayPal or Venmo account to their bank account or debit card, and to facilitate the purchase and sale of cryptocurrencies; however, we generally do not charge customers to fund or draw from their accounts.

We also earn revenue by providing other value added services, which primarily comprise revenue earned through partnerships, interest and fees from our consumer and merchant credit products, interest earned on certain assets underlying customer balances, referral fees, subscription fees, and gateway services.

PayPal started in 1998 to deliver digital and mobile payment solutions. In 2024, PayPal processes transactions through platforms like Venmo. Most of the company's revenue is earned through transaction fees to merchants and consumers for each transaction completed on its payments platform.

PayPal and Venmo are incorporating artificial intelligence (AI) to benefit merchants and consumers

In late 2023, PayPay reorganized its operations to align with consumers, small businesses, and large enterprises to deliver more efficient end-to-end experiences.

In May 2024, PayPal announced a new leadership team to create a new advertising platform and strengthen its consumer group and global marketing and communications.

List of Owned Services

1. Paypal
2. Venmo
3. Braintree
4. Paypal Complete Payments
5. Paypal Pay Later
6. Zettle
7. Paypal Working Capital
8. Paypal Business Loan