PayPal : Third Quarter 2023 Investor Update

Q3-23

Investor Update

November 1, 2023

Non-GAAP Financial Measures; Forward-Looking Statements

This presentation contains non-GAAP measures relating to our performance. These measures may exclude certain expenses, gains and losses that may not be indicative of our core operating results and business outlook, and, in each case, may be different from the non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles. You can find the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the Supplemental Information at the end of this presentation.

As previously disclosed, beginning with the first quarter of 2020, we modified the presentation of our non-GAAP results to exclude the impact of all gains and losses on our strategic investments. In addition, beginning with the fourth quarter of 2020, certain cash flows related to customer balances were reclassified from cash flows from operating activities to cash flows from investing activities or financing activities within the consolidated statements of cash flows, and beginning with the fourth quarter of 2022, certain cash flows related to collateral security arrangements for derivative instruments were reclassified from cash flows from operating activities to cash flows from investing activities or financing activities within the consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current period presentation.

All growth rates represent year-over-year comparisons, except as otherwise noted. FX-Neutral (which we also refer to as FXN or currency-neutral) results are calculated by translating the current period's local currency results by the prior period's exchange rate. FX-Neutral growth rates are calculated by comparing the current period's FX-Neutral results with the prior period's results, excluding the impact from currency hedging activities.

This presentation contains forward-looking statements relating to, among other things, the future results of operations, financial condition, expectations and plans of PayPal Holdings, Inc. and its consolidated subsidiaries ("PayPal") that reflect current projections and forecasts. Forward-looking statements can be identified by words such as "may," "will," "would," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "continue," "strategy," "future," "opportunity," "plan," "project," "forecast" and other similar expressions. Forward-looking statements may include, but are not limited to, statements regarding our guidance and projected financial results for fourth quarter and full year 2023; our capital return program; the impact and timing of product launches and acquisitions; and the projected future growth of PayPal's businesses. Forward-looking statements are based upon various estimates and assumptions, as well as information known to PayPal as of the date of this presentation and are inherently subject to numerous risks and uncertainties. Our actual results could differ materially from those estimated or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to compete in markets that are highly competitive and subject to rapid technological change, and to develop and deliver new or enhanced products and services on a timely basis; cyberattacks and security vulnerabilities, and associated impacts; the effect of global and regional political, economic, market and trade conditions including military conflicts, supply chain issues and related events that affect payments or commerce activity, including inflation and rising interest rates; the impact of catastrophic events, such as global pandemics, that may disrupt our business, as well as our customers, suppliers, vendors and other business partners; the stability, security and performance of our payments platform; the effect of extensive government regulation and oversight related to our business, products and services in a variety of areas, including, but not limited to, laws covering payments, lending and consumer protection; the impact of complex and changing laws and regulations worldwide, including, but not limited to, laws covering privacy, data protection, and cybersecurity; the impact of payment card, bank, or other network rules or practices; risks related to our credit products, including customer default rates and the ability to realize benefits from our agreements with third parties, such as our agreement to sell our European loan receivables; changes in how consumers fund transactions; our ability to effectively detect and prevent the use of our services for fraud, abusive behaviors, illegal activities, or improper purposes; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; our reliance on third parties in many aspects of our business; damage to our reputation or brands; fluctuations in foreign currency exchange rates; changes in tax rates and exposure to additional tax liabilities; changes to our capital allocation, management of operating cash or incurrence of indebtedness; our ability to timely develop and upgrade our technology systems, infrastructure and customer service capabilities; the impact of proposed or completed acquisitions, divestitures, strategic investments, or entries into new businesses or markets; and our ability to attract, hire, and retain talented employees. The forward-looking statements in this presentation do not include the potential impact of any acquisitions or divestitures that may be announced and/or contemplated after the date of this presentation.

More information about factors that could adversely affect PayPal's results of operations, financial condition and prospects or that could cause actual results to differ from those expressed or implied in forward-looking statements is included under the captions "Risk Factors", "Legal Proceedings," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in PayPal's most recent annual report on Form 10-K, and its subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting PayPal's Investor Relations website at https://investor.pypl.com or the SEC's website at www.sec.gov. All information in this presentation is as of November 1, 2023. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this presentation. PayPal assumes no obligation to update such forward-looking statements.

©2023 PayPal Holdings, Inc.

Q3-23 Investor Update • 2

Solid Q3 performance with ongoing disciplined execution of cost initiatives and capital allocation strategy

Q3-23: Revenue outperformed FXN outlook, with continued double-digit TPV growth and 20% non-GAAP EPS growth

• Revenue of $7.4B, growing 8% at spot and 9% FXN1, ~1 pt above FXN guidance
• Ongoing operating discipline, with non-transaction related expenses declining 12% y/y
• Non-GAAPEPS of $1.30, growing 20%, $0.07 above the midpoint of guidance range
• Total payment volume (TPV) of $388B, growing 15% at spot and 13% FXN
• • Branded checkout TPV growing ~6% FXN, compared to ~5% in Q2-23 and ~6.5% in Q1-23
  • PSP2 TPV (unbranded processing) accelerated sequentially, growing ~32% FXN, compared to ~28% in Q2-23 and ~30% in Q1-23

Executing a disciplined capital allocation strategy

• Returned $1.4B to stockholders through share repurchases in Q3-23 and $5.4B on a trailing 12-month basis, reducing weighted average shares by 5% y/y
• Closed on first tranche of back book credit receivables sale to KKR in October, receiving ~$1.4B in proceeds
• Announced divestiture of Happy Returns for $465M in cash proceeds, enabling greater focus on the core business and strategic priorities

FY-23: Ongoing operating discipline driving earnings growth

• FY-23non-GAAP EPS now expected to grow ~21% to ~$4.98
• FY-23share repurchases expected to reach ~$5B, with ~$4.6B of free cash flow (FCF)
• Q4-23revenue expected to grow ~7%-8% FXN; Q4-23non-GAAP EPS expected to grow ~10% to ~$1.36

	Non-GAAP operating margin, non-GAAP EPS, and free cash flow are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-
©2023 PayPal Holdings, Inc.	GAAP financial measures to the most directly comparable GAAP financial measures.	Q3-23 Investor Update • 3
	(1) Foreign currency-neutral. (2) Primarily comprises Braintree full-stack volume and does not include gateway-exclusive volume. Also includes unbranded credit and debit card
	processing on the PayPal platform.

Third quarter 2023 summary

FXN revenue growth and non-GAAP EPS above guidance

Transactions

6.3B

11% transaction growth

56.6

13% transactions per active account (TPA) growth, driven primarily by Braintree transaction growth

Total payment volume

$388B

15% spot and 13% FXN growth, driven by Braintree, PayPal branded checkout and Venmo

Revenue

$7.4B

8% spot and 9% FXN growth

In line with spot guidance and above FXN guidance

Non-GAAP operating income1Non-GAAP EPS1

$1.6B	$1.30
8% increase	20% increase
22.2%	$0.07 above the midpoint of guidance
YTD non-GAAP EPS growth of 25%
Operating margin contraction of ~20bps

Free cash flow1

$1.1B

Includes a $0.8B negative impact from European BNPL loans originated as held for sale (HFS)

$5.2B FCF on a trailing 12-month basis excluding the impact of HFS in Q2-23 and Q3-23

©2023 PayPal Holdings, Inc.	(1) Non-GAAP operating income, operating margin, earnings per share and free cash flow are non-GAAP financial measures. Please see the	Q3-23 Investor Update • 4
	Supplemental Information for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

PayPal has a global, two-sided network at scale and

is one of the world's most trusted brands

~430M

Active consumer and merchant accounts1

200+

Global

markets

Scale

$1.5T

Total payment volume2

Reach

150

Send

currencies

Trust

24B

Payment transactions2

25

Hold

currencies

©2023 PayPal Holdings, Inc.	(1) As of Q3-23	Q3-23 Investor Update • 5
	(2) Last twelve months TPV and transactions (Q4-22 to Q3-23)

PayPal has a diversified and complementary portfolio of assets

Wallet and Commerce

Network

Payment Service Provider (PSP)

P2P Friends	Remittances	Checkout	Recurring	Processing	Risk as a
and Family	Service
Debit/Credit	Offers	PayPal Credit	Buy Now,	In Store	Merchant
Pay Later	Lending
Crypto	Savings/	Donations	P2P Goods	Payouts	Invoicing
Bill Pay	and Services

Consumer Value Proposition

Merchant Value Proposition

©2023 PayPal Holdings, Inc.

Q3-23 Investor Update • 6

New ways to use PayPal's digital wallet

Early fraud alerts offers free 24/7 early fraud detection for eligible cards in a user's PayPal wallet

• Early fraud alerts lets users know when PayPal detects potential card fraud attempts with the eligible credit or debit card in a customer's PayPal wallet, often allowing a user to report fraud before significant financial damage is done.
• Through the end of this year, this feature will be enhanced to include additional early signs of fraud PayPal detects through branded and unbranded payment processing.

Customers can now add their eligible PayPal and Venmo credit and debit cards to Apple Wallet

• PayPal and Venmo credit and debit cardholders can make payments quickly and securely in-store, online, or in-app using Apple Pay across their Apple devices.
• When making payments with Apple Pay, customers can still earn the same cashback and rewards on eligible purchases.
• All eligible cards can be added through the Apple Wallet app; eligible PayPal credit and debit cards can also be added to Apple Wallet through the PayPal app.1

©2023 PayPal Holdings, Inc.	(1) In the US. In the coming months, customers will also have the option to add a PayPal Business Debit Card and	Q3-23 Investor Update • 7
	Venmo credit and debit cards to Apple Wallet by following the steps in the PayPal or Venmo apps.

Introducing more ways to gift with Venmo

Send and receive	Easily and securely
customizable gift	gift money with
cards from popular	Venmo in a
brands through the	physical Hallmark
Venmo app	card

Eligible Venmo customers can send gift cards from popular brands, including Starbucks, Amazon, Sephora, DoorDash, Target, Chipotle and Uber, with an animated design and personal note.

Hallmark + Venmo Cards are now available at thousands of retail locations including CVS, Walgreens and more.

©2023 PayPal Holdings, Inc.

Q3-23 Investor Update • 8

PayPal launches U.S. dollar-denominated stablecoin, PayPal USD

Fully-backed, regulated stablecoin to seamlessly connect fiat and digital currencies

Eligible U.S. PayPal and Venmo customers can:

• Transfer PayPal USD between PayPal, Venmo and compatible external wallets
• Send wallet-to-wallet transfers with PayPal USD
• Fund purchases by selecting PayPal USD at checkout1
• Convert any of PayPal's supported cryptocurrencies to and from PayPal USD

©2023 PayPal Holdings, Inc.	(1) PayPal's Checkout with Crypto feature allows customers to convert
cryptocurrency to fiat currency at checkout. Transactions are settled in fiat.

Distribution

Only stablecoin supported throughout PayPal's payment ecosystem

Fiat to Digital Connectivity

Buy and redeem in the PayPal and

Venmo wallet, and explore Web3

Brand Trust

Supported by PayPal's trusted, mainstream brand

Security

Advanced, proactive fraud monitoring

Compliance

PayPal and the issuer Paxos are both regulated by New York State Department of Financial Services

Q4Q3-234-23InvestorInvestorUpdateUpdate• 9• 9

Strengthening business relationships to drive growth

Since 2010, PayPal and Meta (then Facebook) have enjoyed collaborating across various business and product areas. Meta began offering PayPal as a payment option for Facebook Games to give their customers choice and flexibility in how they pay, and expanded PayPal as a payment option to their advertising business in 2014, followed by various customer use cases on both Facebook and Instagram.

When Meta introduced Instagram and Facebook Shops, they engaged with PayPal to power the end-to-end payments experience for a subset of sellers. Meta also uses PayPal Hyperwallet for some payouts to their creator community in several markets.

Recently, PayPal expanded their offerings to Meta by enabling Braintree as a card processor for Meta's advertising business. Meta also utilizes PayPal Giving Fund to support donations benefiting nonprofits in the US, UK, Canada, and Australia. By working together, PayPal and Meta are able to provide better experiences for their customers and support important causes through charitable giving.

©2023 PayPal Holdings, Inc.

Q3-23 Investor Update • 10