Operates a global digital payments platform that connects consumers and businesses for payments, money movement, and commerce.
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Growing
What PayPal does
PayPal operates a global digital payments platform connecting consumers and businesses.
Founded
1998
San Jose, California
CEO
Enrique Lores
Since 2026
Market cap
$45.39B
#360 in the world
Revenue (FY25)
$33.17B
+4.3% YoY
30-Second Summary
A plain-English explanation of PayPal's business model
If you only remember one thing
PayPal makes money by processing digital payments between consumers and businesses. It earns transaction revenue from payment activity and also generates revenue from services such as partnerships, subscriptions, gateway services, currency conversion, consumer and merchant credit, and other value-added services.
Business Segments
Where PayPal's $33.17B Fiscal year 2025 (ended December 31, 2025) comes from
$33.17B
Fiscal year 2025
57% of revenue ·+3% YoY
43% of revenue ·+6% YoY
PayPal does not disclose revenue amounts for its current three-business operating model in the FY2025 financial statements. For Scope's visualization, revenue is shown using the geographic categories disclosed by PayPal: U.S. and Other Countries.
Fiscal year 2025 ended December 31, 2025. U.S. and Other Countries are geographic revenue categories, not separate operating segments. PayPal announced a three-business operating model in April 2026.
Business Model
How PayPal makes money — the ecosystem flywheel
Connect Consumers & Merchants
Process Digital Payments
Strengths & Risks
What makes PayPal strong — and what could go wrong
Global Payments Platform
PayPal operates a global two-sided network connecting consumers and merchants across approximately 200 markets.
Large User Network
PayPal had 439 million active accounts at the end of 2025.
Large Payment Volume
PayPal processed approximately $1.79 trillion of total payment volume during 2025.
Multiple Payment Products
The platform includes PayPal, Venmo, Braintree, Xoom, PayPal Pay Later and other payment and commerce services.
Multiple Revenue Streams
PayPal generates transaction revenue as well as revenue from value-added services, partnerships, gateway services, subscriptions, and credit products.
Financial Overview
Fiscal year 2025 (ended December 31, 2025)
$33.17B
+4.3% YoY
FY25
$5.23B
+26.2% YoY
FY25
$5.56B
-17.8% YoY
FY25
PayPal generated $33.2B of net revenue in fiscal 2025. GAAP net income was $5.2B and free cash flow was $5.6B.
Financial History
5-year trend, fiscal years 2021–2025
$33.17B
+31% since FY21
Business Ecosystem
Who PayPal depends on — and who depends on PayPal
Merchants
Businesses use PayPal and its payment processing products to accept digital payments and support commerce.
Consumers
Consumers use PayPal and Venmo to pay, send and receive money, manage payment methods, and access related financial services.
Financial Institutions
Banks and financial institutions participate in the payment ecosystem through funding sources, payment processing, and other financial relationships.
PayPal
Global digital payments platform
Competitors
Companies that compete with PayPal across digital payments, payment networks, merchant services, and financial technology. Market caps use an October 1, 2026 snapshot.
Visa
$660.54B
Payments competitor — Visa operates a global payments technology network connecting consumers, merchants, and financial institutions.
Mastercard
$481.81B
Payments competitor — Mastercard operates a global payments technology network connecting consumers, merchants, and financial institutions.
American Express
$204B
Payments competitor — American Express operates a global payments network and financial services business.
Visa Inc.
Operates a global payments technology network connecting consumers, businesses, financial institutions, and governments.
Mastercard Incorporated
Operates a global payments technology network that connects consumers, businesses, financial institutions, and governments.
JPMorgan Chase & Co.
