Case 74 PayPal Holdings, Inc

PayPal Holdings, Inc. is a leading technology platform for digital payments for merchants and consumers worldwide. The basic aim of the company is to enable merchants and consumers to manage and make money transactions anywhere in the world in the markets, anytime, on any platform using any device while sending payments or getting paid which includes person to person (P2P) payments. The company offers services which enable customers to use their PayPal or Venmo accounts to purchase and receive payments for goods and services and provide other services such as the ability to transfer and withdraw funds. PayPal enables consumers to exchange funds with merchants using different funding sources such as bank account, PayPal or Venmo account balance, PayPal and Venmo branded credit products which include installment products, credit card, debit card, cryptocurrencies, and products such as gift cards and eligible rewards. PayPal, Venmo, and Xoom products facilitate people to transfer funds to each other. PayPal is at the forefront of digital payment revolution for over 20 years. The PayPal platform facilitates millions of people and businesses across the globe to deal with financial transactions with over 430 million active accounts composed of 392 million active consumer accounts and 34 million active merchant accounts in more than 200 markets. PayPal aims to be a trusted everyday app for consumers and an essential tool to help small- and medium-sized businesses (SMBs). In 2022, PayPal processed 22.3 billion payment transactions and $1.36 trillion in total payment volume across its platform. The company returned over $4.2 billion to stockholders through share repurchases in the year 2022 which represented 80% of its free cash flow. In 2022, PayPal processed 22.3 billion payment transactions and $1.36 trillion in total payment volume across the platforms. The company had provided access to more than $4 billion in capital through its merchant lending services. PayPal had launched PayPal Rewards and Honey extension to consumers to save money on everyday purchases. The company has enabled secure passwordless login to PayPal accounts across platforms and devices with passkeys. PayPal earns revenues primarily by charging fees for payment transactions by customers and other payment related services. Revenues are also generated from customers through fees charged for foreign currency conversion, instant transfers from their PayPal or Venmo account to their bank account or debit card. Revenues are also earned through partnerships, interest and fees from merchant and consumer credit products, interest earned on certain assets signifying customer balances, referral fees, subscription fees, and gateway services.