Paypal Holdings, Inc. 2211 North First Street San Jose, California 95131

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Paypal Holdings, Inc. 2211 North First Street San Jose, California 95131 PayPal Holdings, Inc. 2211 North First Street San Jose, California 95131 United States Prospectus for the public offer of 52,964,978 shares of PayPal Holdings, Inc. common stock each with a par value of $0.0001 under the PayPal Holdings, Inc. Amended and Restated Employee Stock Purchase Plan to the employees of certain European Economic Area (“EEA”) subsidiaries of PayPal Holdings, Inc. March 21, 2019 International Securities Identification Number (ISIN) US70450Y1038 German Securities Code Number (Wertpapier-Kenn-Nummer) A14R7U CUSIP Number: 70450Y 10 3 TABLE OF CONTENTS Page Prospektzusammenfassung 4 Abschnitt A – Einleitung und Warnhinweise ................................................................................................ 4 Abschnitt B – Emittent .................................................................................................................................... 4 Abschnitt C — Wertpapiere ........................................................................................................................... 7 Abschnitt D — Risiken .................................................................................................................................... 8 Abschnitt E — Das Angebot ......................................................................................................................... 10 Prospectus Summary 14 Section A — Introduction and Warnings .................................................................................................... 14 Section B — Issuer ......................................................................................................................................... 14 Section C — Securities .................................................................................................................................. 17 Section D — Risks .......................................................................................................................................... 18 Section E — Offer .......................................................................................................................................... 20 Risk Factors 23 General Information 49 Responsibility for Contents of the Prospectus ............................................................................................. 49 Subject Matter of the Offering ..................................................................................................................... 49 Forward-Looking Statements ....................................................................................................................... 49 Currency References ..................................................................................................................................... 49 Documents Available for Inspection ............................................................................................................ 49 The Offering 51 Information Concerning the Shares to be Offered ..................................................................................... 51 The Offering under the ESPP ....................................................................................................................... 51 Terms and Conditions ................................................................................................................................... 52 Reasons for the Offering and Use of Proceeds 56 Purpose of the Plan ........................................................................................................................................ 56 Proceeds and Use of Proceeds ....................................................................................................................... 56 Dilution 57 Dividend Policy 58 Capitalization 59 Capitalization and Indebtedness .................................................................................................................. 59 Commitments and Contingencies ................................................................................................................. 60 Working Capital Statement .......................................................................................................................... 61 Selected Consolidated Financial Data 62 Legal and Arbitration Proceedings 64 2 Shareholdings and Stock Options of Members of the Administrative, Management and Supervisory Bodies 67 General Information on PayPal Holdings, Inc. 69 Company Name .............................................................................................................................................. 69 General Information on PayPal and its Business ........................................................................................ 69 Auditors .......................................................................................................................................................... 69 Description of the Securities 70 Type and Class of Securities being offered, including the Security Identification Code ......................... 70 Legislation under which the Securities have been Created/Regulation of the Shares ............................. 70 Form of Securities, Name and Address of the Entity in Charge of Keeping the Records ....................... 70 Commission .................................................................................................................................................... 71 Currency of the Securities Issue ................................................................................................................... 71 Rights Attached to the Securities .................................................................................................................. 71 Change of Shareholders’ Rights ................................................................................................................... 72 Transferability ............................................................................................................................................... 72 Applicable Squeeze-out and Sell-out Rules ................................................................................................. 72 Stock Based Compensation Plans ................................................................................................................. 72 Stock Repurchase Activity ............................................................................................................................ 74 Information on the Governing Bodies of PayPal Holdings, Inc. 75 The Company’s Directors as of the Date of this Prospectus ...................................................................... 75 The Company’s Executive Officers as of the Date of this Prospectus ....................................................... 77 Good Standing of Directors and Executive Officers ................................................................................... 78 Potential Conflicts of Interest Between Any Duties to the Issuer of Directors or Executive Officers of the Company and Their Private Interests and/or Other Duties....................................................................... 78 Disposal Restrictions Agreed by Directors and Executive Officers of the Company............................... 78 Taxation in the Federal Republic of Germany 79 Taxation in Ireland 81 Taxation in Sweden 83 Taxation in the United Kingdom 85 Taxes on Income from the Securities Withheld at Source under US Federal Tax Laws 87 Recent Developments and Outlook 88 Recent Developments since December 31, 2018 .......................................................................................... 88 Trend Information ......................................................................................................................................... 88 3 PROSPEKTZUSAMMENFASSUNG Hinweis an den Leser Zusammenfassungen bestehen aus verschiedenen Offenlegungselementen, die als „Angaben“ bezeichnet werden. Diese Angaben sind unten in den Abschnitten A – E enthalten (A.1 – E.7). Diese Zusammenfassung enthält alle Angaben, die in einer Zusammenfassung für die angebotene Art von Wertpa- pieren und diesen Emittenten erforderlich sind. Da bestimmte Angaben in der Zusammenfassung nicht enthalten sein müssen, können in der Nummerierung der Angaben Lücken auftreten. Es kann vorkommen, dass im Hinblick auf eine bestimmte Angabe keine relevanten Informationen zur Verfügung gestellt werden können, obwohl die entsprechenden Informationen aufgrund der Art der angebotenen Wertpapiere und des Emittenten eigentlich zwingend in die Zusammenfassung aufzunehmen sind. In einem solchen Fall ist in der Zusammenfassung eine kurze Umschreibung der Angabe enthalten und mit der Bezeichnung „entfällt“ kenntlich gemacht. Abschnitt A – Einleitung und Warnhinweise A.1 Einleitung und Diese Zusammenfassung sollte als Einführung zum Prospekt verstanden werden. Der Warnhinweise Anleger sollte jede Entscheidung zur Anlage in die betreffenden Wertpapiere auf die Prüfung des gesamten Prospekts stützen. Für den Fall, dass vor einem Gericht An- sprüche auf Grund der in diesem Prospekt enthaltenen Informationen geltend gemacht werden, könnte der als Kläger auftretende Anleger in Anwendung der einzelstaatli- chen Rechtsvorschriften der Staaten des Europäischen Wirtschaftsraums („EWR“) die Kosten für eine etwaige Übersetzung des Prospekts vor Prozessbeginn zu tragen ha- ben. Diejenigen Personen, die die Verantwortung für die Zusammenfassung ein-
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