How PayPal Makes Money—Financial & Key Business Statistics
A breakdown of PayPal's products, business model, and key business metrics.
Updated quarterly. Last updated: August 20, 2021.
PayPal Overview
| Ticker | PYPL |
|---|---|
| Industry | Financial Services |
| CEO | Dan Schulman |
| Year Founded | 1998 |
| IPO Date | February 15, 2002 |
| TTM Revenue | $22.8 billion |
| TTM EBITDA | $4.9 billion |
| TTM FCF | $4.7 billion |
What PayPal Does
PayPal is a digital payments company that serves both consumers and businesses.
Consumer products:
- PayPal-Its first product. The OG!
- Venmo-Lets you send money to people and merchants via a mobile app.
- Xoom-Lets you send money abroad.
- Honey-Helps you find coupon codes on 30,000+ sites. (PayPal acquired Honey for $4 billion in January 2020)
- PayPal Credit-Its version of buy now, pay later (BNPL).
B2B products:
- Braintree-Helps online businesses accept payments through software.
- Zettle-A point of sale solution for merchants.
- Hyperwallet-Helps businesses send payments to contractors, freelancers, and sellers around the world.
PayPal's Revenue, Gross Profit, EBITDA, and FCF
How PayPal Makes Money—Its Business Model
PayPal makes money two ways:
- Transaction fees-Fees charged to merchants and consumers for transacting on its platform.
- Fees from value-added services-Earned from partnerships, subscription fees, gateway fees, and other services. They also earn interest on merchant and consumer loans.
Revenue breakdown
PayPal's Key Business Metrics
PayPal tracks four metrics to measure the health of its business.
- Active accounts
- Total payment volume
- Payment transactions
- Payment transaction per active account
Active accounts
- Active accounts are accounts registered with PayPal or one of its platform partners that has completed a transaction in the past twelve months. (This includes the Honey platform)
Total payment volume (TPV)
- Total payment volume is the total value of payments, net of reversals, processed on its platform.
Number of payment transactions
- Number of payment transactions is the total number of payments, net of reversals.
Number of payment transactions per active account
- Number of payment transactions per active account is the total number of payment transactions during the previous twelve-month period, divided by active accounts at the end of the period.
PayPal's Competitors
On the consumer side:
On the B2B side: