PayPal Holdings, Inc. | North America Preserving Optionality

Research evidence excerpt

PayPal Holdings, Inc. | North America Preserving Optionality

ling $850–$900 million (later reported) TaxJar and Stripe had worked closely for approximately TaxJar became part of Stripe Tax; founders later departed and the product

five years remained focused on US SMB use cases.

Oct 15, 2020 Paystack Full-company acquisition African payments infrastructure $200 million (reported) Stripe led Paystack’s 2018 Series A alongside Visa; Paystack continued operating with its brand and local team as part of

multi-year relationship Stripe.

Source: Stripe and Target Company Filings and Websites, Morgan Stanley Research

Key Highlights from the 2Q26 Print:

• Branded checkout stabilized at +2% with a modestly better outlook.

Online branded checkout TPV grew 2% in 2Q (same as 1Q), helped by the

World Cup, broadly healthy US eComm trends, improvement in the travel

vertical through the quarter, and BNPL and Pay with Venmo contribution.

Management raised the full-year outlook to low-single-digit growth (from

slight positive to LSD prior).

• Venmo showing momentum, but some near-term lift may be promotion-

driven. Pay with Venmo grew 44%, and monthly active Venmo debit

accounts rose more than 50%. Recently launched rewards, marketing and

product-adoption incentives may be supporting some of the near-term

acceleration.

• Focusing on credit and financial services; BNPL is viewed as key growth

engine. BNPL volume accelerated to 26% growth YoY, helping lift branded

checkout. PayPal is expanding distribution through upstream presentment,

new geographies and partnerships, and management highlighted that

financial services revenue is expected to grow at least twice as fast as the

company this year.

• Cost savings on track. PayPal said it remains on track for at least $1.5 billion