PayPal (PYPL) investor relations material

Strategic priorities and business model changes

• Five major changes underway include rebalancing focus from branded checkout to a broader financial services portfolio and increasing attention to the consumer side of the network.

• Growth opportunities identified in Venmo and Braintree, with a shift to high-value customers and new loyalty programs.

• BNPL is being integrated more deeply into the core offering, with geographic expansion and product enhancements planned.

• Segmenting the business into Checkout, Processing & Venmo, and Consumer Financial Services to clarify accountability and accelerate decision-making.

• Segment reporting will be introduced next year to align investor expectations with internal management.

Financial performance and macro environment

• U.S. demand remains strong, but European tariffs are having a greater and longer impact on cross-border business than expected, especially from China.

• Branded checkout growth is expected to be in the 1%-2% range for the quarter, but overall EPS and transaction margin guidance remains unchanged.

• Germany remains a key market, with focus on high-value customers, BNPL growth, and a new loyalty product to drive performance.

Product and technology initiatives

• Investments are being made in revitalizing the marketing platform and building local consumer teams in key countries.

• Venmo continues to deliver double-digit TPV growth, with expansion in debit card usage and Pay with Venmo seen as key short-term drivers.

• Braintree and PSP are focusing on increasing the connect rate of value-added services, with a specialized sales force being built and tangible progress expected through 2027.

• Cost savings of at least $1.5 billion over 2-3 years are targeted through organizational simplification, portfolio streamlining, and AI-driven automation, with savings reinvested in growth areas.

• Technology stack modernization is underway to integrate platforms and enable faster growth.