PAYPAL HOLDINGS, INC. (NASDAQ: PYPL)

Second Quarter 2020 Results

San Jose, California, July 29, 2020

Q2’20: Record performance across key operating and financial metrics • Total Payment Volume (TPV) of $222 billion, growing 29%, and 30% on an FX-neutral basis (FXN); revenue of $5.26 billion, growing 22%, and 25% FXN • GAAP EPS of $1.29, up 86% with non-GAAP EPS of $1.07, up 49% • Cash flow from operations of $2.4 billion, growing 103%, with free cash flow of $2.2 billion, growing 112% • 21.3 million Net New Active Accounts (NNAs) added; strongest quarter for NNAs in PayPal’s history

FY’20: Reinstating and raising full year guidance based on strong momentum • Q3’20 revenue growth expected to be ~23%, and ~25% FXN, consistent with Q2’20 • With year-to-date revenue growth of 17%, and 19% FXN, FY’20 revenue growth now expected to be ~20%, and ~22% FXN • FY’20 GAAP EPS growth expected to be ~25% with non-GAAP EPS growth of ~25% • Approximately 70 million NNAs expected to be added to PayPal’s platform in FY’20

Q2’20 Highlights

In the midst of the COVID-19 pandemic, GAAP Non-GAAP digital payments have become more YoY YoY important and essential than ever. Our USD $ Change USD $ Change record performance in the second quarter — our strongest quarter ever — reaffirms the Net Revenues $5.26B 22% $5.26B 25%* relevance of PayPal in the unfolding digital future. We’re committed to supporting our consumers and merchants as they work to Operating Income $0.95B 35% $1.49B 49% safely navigate this new reality.” Dan Schulman EPS $1.29 86% $1.07 49% President and CEO

* On an FXN basis Q2 2020 Results 2 112% $2.19B 25% Q2’20 YoY $5.26B Q2’20 103% Q2’20 3 $2.38B $5.26B 13% Q1’20 $4.62B YoY

60% $1.30B

Q1’20 4 18% Q4’19 Net $4.96B 46% $1.50B Revenues +129% $2.2B +112% 19% 20% Q3’19 $4.38B $1.09B / Q4’19 11% $1.26B 12% Q2’19 YoY Q2’15 $4.31B 5 Net Revenues +25% $5.26B $2.30B 20% $923M Free Cash Flow ■ Free ■ Operating Cash Flow Q3’19 ** $1.10B 5 30% Q2’20 $222B 40% $1.04B 3 Q2’19 Q2’20 ** 19% $222B Q1’20 $191B (TPV) $1.17B

Operating Cash Flow / Free Cash Flow / Free Operating Flow Cash +103% $2.4B YoY

22% Q4’19 $199B Volume +221% 49% $1.07 Total Payment Total 27% Q3’19 $179B * Q2’20 86% YoY YoY $1.29 26% Q2’19 $172B Q2’15 $69B Total Payment Volume Volume Payment Total $222B +30% 0% $0.66 Q1’20 $0.07 (87%) 137% Q2’20 21.3M 27% $0.83 $1.07 +49% 2 Q4’19 (NNAs) Q2’20 118% Q1’20 $0.43 (13%) 20.2M 21.3M 4 YoY

■ GAAP ■ Non-GAAP 1 YoY / YoY 31% $0.76 9.3M Q4’19 (33%) Q3’19 7% $0.39 Accounts +522% 7% 9.8M Q3’19 Net New Active

* 27% $0.71

17% Q2’19 9.0M Q2’19 58% $0.69 Q2’15 GAAP / Non-GAAP EPS $1.29 +86% $1.29 Net New Active Accounts Accounts Net New Active +137% 21.3M

3.4M Key Financial and Operating and Metrics Financial Key * Q2’15 NNAs and TPV as presented are based on the updated definitions of “Active Accounts” and “Total Payment Volume” disclosed in our Form 8-K filed with the Securities and Exchange Commission on April 10, 2018 Commission on April Exchange Form 8-K filed with the Securities and Volume” disclosed in our Payment Accounts” and “Active “Total based on the updated are as presented * Q2’15 NNAs and TPV definitions of

1. NNAs in Q4’18 (13.8M) included 2.9M NNAs from the acquisitions of Hyperwallet and iZettle 2. Includes one-time addition of 10.2 million accounts in January 2020 from the acquisition of Honey 3. On an FXN basis 4. For a For basis 4. an FXN On 3. the acquisition of Honey from million accounts in January 2020 included 2.9M the acquisitions of Hyperwallet NNAs from and iZettle 2. Includes one-time addition of 10.2 (13.8M) NNAs in Q4’18 1. press subsequent tables at the end of this and the Performance” please see the section titled“Non-GAAP Financial of Non-GAAP GAAP financial measures, reconciliation comparable of to the most directly Measures measures financial Financial portfolio credit consumer to Synchrony sale of U.S. for Adjusted 5. release ** Not meaningful Five Years of Growth Years Five Since becoming an independent public company in July 2015, PayPal’s platform has scaled rapidly platform PayPal’s Since becoming an independent public company in July 2015, Q2 2020 Results 3

John Rainey and EVP CFO Global Customer Operations Our secondOur performance quarter benefitshighlights the of PayPal’s and our and scale, diversification delivered We power. earnings resulting on a currency- growth 25% revenue in non-GAAP growth basis, 49% neutral perearnings $2.2 and generated share, flow.” cash in free billion dollars

Merchant ServicesMerchant 91% of TPV. a spot 28% on basis and 30% FXN, and represented grew volume 52%. growing TPV, $37 billion in approximately processed Venmo GAAP and non-GAAP EPS include an approximate $0.07 of GAAP and non-GAAP EPS include an approximate to related provisions credit increased impact from negative revised macroeconomic projections. macroeconomic revised gain of $0.58 on a net unrealized GAAP EPS also includes MercadoLibre primarily by driven strategic investments, (NASDAQ: MELI).

PayPal’s cash, cash equivalents, and investments totaled $16.2 billion as of June 30, 2020. cash, cash equivalents, and investments PayPal’s effective Accessedweighted average notes at a in May 2020, raising $4.0 billion in senior fixed the public debt markets debt totaled $9.0 billion as of June 30, 2020. rate of 2.26%. PayPal’s interest 112%. growing of $2.2 billion, cash flow 103%, and free operations of $2.4 billion, growing from PayPal generated cash flow of common stock, 1.4 million shares $220 million to stockholders. returning approximately In Q2’20, repurchased 21.3 million NNAs accounts to 346 million accounts, up 21%. added, bringing total active 3.7 billion payment transactions, up 26%. up 29% on a spot basis and 30% FXN. $222 billion in TPV, • • months basis, flat to Q2’19. on a trailing twelve account 39.2 payment transactions per active for the acquisition Adjusting of Honey in January months basis, up 4%. 2020, 40.7 payment transactions per account on a trailing twelve active Revenue of $5.26 billion; growing 22% on a spot 22% and 25% FXN. basis of $5.26 billion; growing Revenue GAAP operating of 18.1%, expanding 170 basis points; margin non-GAAP operating expanding 504 basis points. of 28.2%, margin due to recorded of $117 million were provisions credit Increased projections. macroeconomic revised up 86%; non-GAAPGAAP EPS of $1.29, up 49%. EPS of $1.07, •

•

• • • • Strong balance sheet growth and cash-flow generation and cash-flow balance sheetStrong growth • Record growth in NNAs and strong engagement driving sustained engagement momentum strong in NNAs and growth Record • • • • • Strongest quarterly performance in PayPal’s history quarterly performance in PayPal’s Strongest • Balance Sheet and Liquidity Balance Sheet and

Q2’20 Operating Highlights Q2’20 Financial Highlights Financial Q2’20 Q2 2020 Results 4

In June, PayPal announced a $530 million commitment to supportIn June, PayPal announced a $530 million Black and minority-owned businesses and communities COVID-19. hit by commitment This includes short-term, medium-term, and long-term especially those hardest in the U.S., inequality. economic in businesses and communities to address investments Paycheck Small Business Administration’s the U.S. than $2 billion in loans through access to more PayPal has also provided U.S. than 76,000 small businesses in the (PPP) to more Program Protection since customers, partners and employees billion in donations from $5.6 The PayPal Giving Platform has facilitated over COVID-19 fundraising donations, PayPal’s the PayPal platform to process early March. leveraging This includes charities giving campaigns and corporate matching dollars, employee PayPal’s at checkout, funds donated campaigns in 12 markets, Nextdoor and Google. Nation, Spotify, Facebook, Live companies like Airbnb, fundraising from partner and PayPal’s In May, PayPal announced the deployment of QR code technology in 28 markets globally. The introduction of the QR code The introduction of QR code globally. announced the deployment PayPal technology in 28 markets In May, way to buy or sell in person, customers with a touch-free safely and apps provides and Venmo functionality in the PayPal Venmo QR codes at to use PayPal and chain that will offer customers the ability retail Pharmacy is the first CVS securely. the end of the year. by This experience to all stores will be in Q4’20, with rollout introduced in the U.S. checkout with Gojek, relationship into a commercial In June, PayPal entered a multi-service platform and leader in mobile commerce in Southeast Asia, than 170 million users. with more that allows a new offering Profiles, also launched Business users. Venmo deposit for Venmo direct In April, PayPal enabled platform. on Venmo’s presence a professional have and casual sellers to sole proprietors for shoppers Mexico. in Brazil and In online checkout as a payment option within Mercado available PayPal is now Pago’s in Brazil and Mexico. marketplace transactions in MercadoLibre’s border a payment option for cross addition, PayPal is now access to funds for small businesses, consumers globally to accelerate real-time partnership PayPal expanded its Visa Direct services platform. PayPal will also be enabled to extend global white label payout Visa Direct PayPal’s and partners across Hyperwallet PayPal, Braintree, and iZettle. through

Amaurys and Roselyn Grullon and Roselyn Amaurys Bronx Native Founders, U.S. Bronx, New York, “PayPal helped us continue to spark that flame and and seeing spread our mission of changing the narrative ours thrive.” communities like

Prior to the pandemic, PayPal helped a clothing Prior Bronx Native, line with two retail locations, accept in-store and online Capital loan. When payments and expand using a Working the pandemic hit, a PPP loan from PayPal helped Amaurys their and Roselyn Grullon maintain their stores and keep online, the PayPal checkout business running. As sales moved button allowed customers to easily and securely shop. Bronx Native Supporting our employees, customers and communities customers Supporting our employees, • • • • • • • Advancing our priorities our priorities Advancing •

Our Values in Action Our Values Strategic Initiatives and Business Updates and Business Initiatives Strategic Q2 2020 Results 5 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 25% 25% 30% FXN YoY Growth YoY 22% 22% 29% 86% 86% 49% 49% 112% 103% 170bps 223bps 504bps (410bps) YoY Growth YoY ** ** ** ** $415 $707 $956 $956 $0.36 $0.60 $1,155 $1,209 $49,372 $823 $0.71 $848 $0.69 12.7% 16.7% 16.4% $1,174 23.2% $1,035 $4,305 $4,305 Q2 2019 $172,359 $1.07 $1.29 18.1% 12.6% 15.0% 28.2% $5,261 $5,261 $1,263 $2,190 $1,530 $2,383 $221,731 Q2 2020

Net revenues Operating margin rate tax Effective Net income perEarnings diluted share cash flow Free Net revenues Operating margin rate tax Effective Net income perEarnings diluted share Net cash provided by operating by activities Net cash provided

Non-GAAP Total Payment Volume (TPV) Payment Volume Total GAAP ** Not meaningful

Presented in millions, except per share data and percentages per share in millions, except Presented Q2’20 Financial and Operating Highlights Financial Q2’20 Q2 2020 Results 6

approximately $2.11 billion, including estimated stock-based compensation expense and related payroll taxes taxes compensation payroll expense and related $2.11 billion, including estimated stock-based approximately $1.47 billion. of approximately and $0.62 on GAAP earnings per diluted share, impact of acquisitions is estimated to beThe dilutive approximately $0.11 on non-GAAP earnings per diluted share. approximately GAAP and non-GAAP earnings per diluted share exclude the impact of incremental credit loss reserves due to due loss reserves credit the impact of incremental GAAP and non-GAAP exclude earnings per share diluted projections. macroeconomic in the first and second gains recognized guidance includes $0.51 of net unrealized GAAP earnings per diluted share portfolio. investment strategic to PayPal’s quarters of 2020 related to PayPal’s related gains $0.14 of net unrealized included approximately In 2019, GAAP earnings per diluted share portfolio. strategic investment months ending DecemberEstimated non-GAAP adjustments of amounts for the twelve reflect 31, 2020 GAAP and non-GAAP earnings per diluted share exclude the impact of incremental credit loss reserves due to loss reserves credit the impact of incremental GAAP and non-GAAP exclude earnings per diluted share projections. macroeconomic gains unrealized and the impact of net realized excludes of 2020, GAAP earnings per quarter In the third share diluted portfolio. investment strategic and losses on PayPal’s losses $0.15 of net unrealized approximately included of 2019, GAAP earnings per quarter In the third share diluted portfolio. investment strategic PayPal’s from Estimated non-GAAP months ending September amounts for the three adjustments of 30, 2020 reflect taxes compensation payroll expense and related including estimated stock-based $530 million, approximately $370 million. of approximately and GAAP earnings per $0.11 on diluted share, impact of acquisitions is estimated to beThe dilutive approximately non-GAAP $0.04 on earnings per diluted share. approximately

• PayPal expects TPV growth on a percentage basis to be on a percentage in high 20s. PayPal expects TPV growth spot rates and ~22% on an FXN basis. ~20% at current to grow PayPal expects revenue ~25%. ~25%, and non-GAAP to grow PayPal expects earnings per to grow GAAP earnings per diluted share diluted share • • • • PayPal expects TPV growth of ~30%. PayPal expects TPV growth spot and ~25% on an FXN basis. rates ~23% at current to grow PayPal expects revenue ~25%. non-GAAP ~45% and PayPal expects to grow earnings per to grow per GAAP earnings diluted share diluted share • • • • •

PayPal Holdings, Inc. will host a conference call to discuss second quarter 2020 results at 2:00 p.m. Pacific Time today. A Time today. Pacific at 2:00 p.m. call to discuss second quarter 2020 results PayPal Holdings, Inc. will host a conference that includes supplemental financial information and a slide presentation call, together with webcast of the conference live can be comparable GAAP measures, accessed through of certain non-GAAP to their most directly reconciliations measures of the webcast will be an archive In addition, at https://investor.paypal-corp.com. Relations website Investor the company’s the same link. through accessible for 90 days Conference Call and Webcast Please see “Non-GAAP Measures” Financial and “Non-GAAP Measures for important of Financial Performance” additional information. Full Year 2020 Revenue and Earnings Guidance and Earnings Revenue 2020 Year Full • • • • • Third Quarter 2020 Revenue and Earnings Guidance and Earnings Revenue Quarter 2020 Third • Financial Guidance Financial Q2 2020 Results 7

Forward-Looking Statements Forward-Looking of operations, results among other things, the future contains forward-looking to, statements relating release This press current financial condition, expectations,reflect PayPal’s and its consolidated subsidiaries that and plans of PayPal Holdings, Inc. “could,” “should,” “would,” “will,” such as “may,” words by can be statements identified Forward-looking and forecasts. projections and other “forecast,” “project,” “plan,” “opportunity,” “future,” “strategy,” “intend,” “estimate,” “believe,” “anticipate,” “expect,” results financial projected statements regarding not limited to, statements include, but are Forward-looking similar expressions. businesses. of PayPal’s growth future impact and timing of acquisitions, and projected 2020, quarter and full year for the third to PayPal as of based upon as information known as well various estimates and assumptions, statements are Forward-looking could actual results risks and uncertainties. Accordingly, to numerous subject inherently and are release, the date of this press Factors that could cause or contribute to by forward-looking statements. or implied those predicted differ materially from business, impact of the COVID-19 on PayPal’s and indirect outbreak not limited to: the direct include, but are such differences vendors and other customers, suppliers, results of operationswell as the operations as financial condition and of PayPal’s and after the COVID-19 has subsided; the effect of business partners, even political, business, economic, market, outbreak that affect payments or or crisis and any conditions or general economic downturn trade conditions, including any regional association- payment card regulatory, rates; the competitive, exchange currency fluctuations in foreign e-commerce growth; Xoom, Venmo, Braintree, PayPal, PayPal Credit, including core payment platform, and other risks specific to PayPal’s related new products introduce Hyperwallet especially and other products, as PayPal continues to expand geographically, iZettle, Honey, to payments and financial technologies and payment methods related and support across and as new laws and regulations including on its funding mix and transaction customer choice initiatives, services come into effect; the impact of PayPal’s and for its businesses, products, environment ability to successfully compete competitive in an increasingly expense; PayPal’s services, importanceand mobile payments and of digital the increasing and including competition for consumers and merchants tax and need and ability to manage regulatory, the outcome of legal and regulatory and PayPal’s proceedings mobile commerce; changes restrictive; jurisdictions and applicable laws become more in more and services offered litigation risks as its products are capital allocation or management of operating the implementation and impact of the cash; uncertainty surrounding to PayPal’s Union; cyberattacks the European and services and security vulnerabilities in PayPal products withdrawal from United Kingdom’s or lead to liability; position costs, harm our competitive or our reputation, increase revenue, that could disrupt business, reduce and service to its product offerings; any changes PayPal may make the effect of management changes and business initiatives; customers; the effect of any natural disasters, the COVID-19 or other business interruptions on PayPal or PayPal’s outbreak and customer service its technology infrastructure, ability to timely upgrade and develop capabilities at systems, PayPal’s and performance of its Payments Platform and Honey security, ability to maintain the stability, cost; PayPal’s reasonable

Non-GAAP Measures Financial defined as “non-GAAP non-GAAP by the SEC including: financial measures includes financial measures” net release This press income, non-GAAP non-GAAPearnings per diluted share, operating income, non-GAAP operating non-GAAP margin, effective non-GAAP please see For an explanation of the foregoing measures, cash flow. and adjusted free cash flow, tax rate, free non- from may be different These measures “Non-GAAP release. Measures of Financial Performance” included in this press under prepared information, which is not of this financial by other companies. The presentation used GAAP financial measures or as a substitute for, intended to be set of accounting rules or principles, is not in isolation of, considered any comprehensive For a principles (GAAP). with generally accepted accounting in accordance and presented the financial information prepared “Non-GAAP see GAAP measures, comparable of these non-GAAP to the most directly reconciliation financial measures Measures “Reconciliation of GAAP “Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin,” of Financial Performance,” Tax Rate to Non-GAAP Net Income to Non-GAAP Net Income, GAAP Diluted EPS to Non-GAAP Diluted EPS and GAAP Effective “Reconciliation of Operating and and Free Cash Flow Free Cash Flow.” to Cash Flow Adjusted Tax Rate,” Effective Presentation translating by calculated as otherwise are noted. FXN results comparisons, except year-over-year represent rates All growth the comparing by calculated rates are growth rate. FXN prior period the period by exchange the current results local currency amounts in tables are hedging activities. All the impact from period with the prior period excluding current results FXN results, as otherwise Asnoted. millions, except to the nearest certain amounts and rates may dollars, rounded a result, in U.S. presented provided. dollar amounts using the rounded not sum or recalculate Q2 2020 Results 8 Media Relations Contacts Media Relations Amanda Miller amandacmiller@paypal.com 408.219.0563 Josh Criscoe [email protected] 646.667.5065

© 1999-2020 PayPal Holdings, Inc. All rights reserved. Other company and product names may be trademarks of their respective owners. names may be Other company and product © 1999-2020 PayPal Holdings, Inc. All rights reserved. trademarks of their respective Akila Moorthy [email protected] Investor Relations Contacts Relations Investor Gabrielle Rabinovitch [email protected]

PayPal Holdings, Inc. uses its Investor Relations website (https://investor.paypal-corp.com), the PayPal Newsroom (https:// the PayPal Newsroom (https://investor.paypal-corp.com), website Relations PayPal Holdings, Inc. uses its Investor (@PayPal and @ handles Twitter PayPal Stories Blog (https://www.paypal.com/stories/us), newsroom.paypal-corp.com/), page (https://www.facebook.com/ Facebook page (https://www.linkedin.com/company/paypal), PayPalNews), LinkedIn (https://www.linkedin. profile LinkedIn Dan Schulman’s channel (https://www.youtube.com/paypal), PayPalUSA/), YouTube Facebook Dan Schulman’s (www.linkedin.com/in/john-rainey-pypl), profile LinkedIn John Rainey’s com/ in/dan-schulman/), Instagram page (https://www.instagram.com/ and Dan Schulman’s page (https://www.facebook.com/DanSchulmanPayPal/) information aboutdan_schulman/) as a means of disclosing obligations under its disclosure the company and for complying with should investors these channels may be The information that is posted deemed material. Accordingly, through Regulation FD. with the filings Commission (“SEC”), releases, press Securities and Exchange monitor these channels in addition to PayPal’s calls, and webcasts. public conference Disclosure Channels Disclosure More information about factors that could adversely affect PayPal’s results of operations, financial condition and prospects,results of operations,or financial condition and information aboutMore affect PayPal’s factors that could adversely or implied in forward-looking included under the statements is those expressed to differ from results that could cause actual and Results of Operations” Condition of Financial Discussion and Analysis in PayPal’s and “Management’s captions “Risk Factors” 10-Q, copies of which may be on Form its subsequent quarterly reports 10-K and obtained Form on annual report most recent All at www.sec.gov. website or the SEC’s at https://investor.paypal-corp.com Relations website Investor PayPal’s visiting by on place undue reliance should not you above, discussed the reasons speaks as of July 29, 2020. For information in this release assumes no obligation to update PayPal such forward-looking release. the forward-looking statements. statements in this press Platform while adding new products and features in a timely fashion; risks that planned acquisitions will not be planned acquisitions fashion; risks that in a timely features and on completed adding new products Platform while may not perform its expectations; with PayPal may acquire and that any businesses terms, or at all, contemplated accordance in in the may or be acquired been acquired that have businesses manage, and grow integrate, ability to profitably and PayPal’s not include the potential do The forward-looking in this release statements or divestitures impact of any acquisitions future. date hereof. completed after the that may be and/or announced Q2 2020 Results 9 2019 December 31, $ 7,349 3,412 435 3,972 22,527 800 38,495 2,863 1,693 6,212 $ 778 1,292 51,333 $ 232 24,527 2,087 26,919 73 2,520 4,965 34,404 — — (6,872) 15,588 8,342 (173) 16,885 $ 16,929 44 51,333 2020 June 30, (In millions, except par value) (In millions, $ 6,353 6,695 446 3,135 29,031 840 46,500 3,175 1,717 9,118 $ 1,254 1,402 63,166 $ 252 31,031 2,119 327 33,729 2,819 8,934 45,482 — — (7,892) 15,914 9,788 (170) 17,640 $ 17,684 44 63,166 PayPal Holdings, Inc. Holdings, PayPal Unaudited Condensed Consolidated Balance Sheets Consolidated Condensed Unaudited Total current assets Total assets Total current liabilities Total liabilities equity Stockholders’ PayPal Total Total equity Total liabilities and equity Cash and cash equivalents cash and Cash investments Short-term net receivable, Accounts net receivable, interest and Loans accounts customer and Funds receivable assets current other and expenses Prepaid payable Accounts customers to due amounts and Funds payable liabilities current other and expenses Accrued payable taxes Income Long-term investments net equipment, and Property Goodwill net assets, Intangible assets Other AND EQUITY LIABILITIES Current liabilities: Deferred tax liability and other long-term liabilities debt Long-term Equity: of as outstanding 1,173 shares authorized; 4,000 shares value; $0.0001 par stock, Common 31, 2019 December 30, 2020 and June both unissued authorized, 100 shares value; $0.0001 par stock, Preferred 31, 2019, December 30, 2020 and June of as 105 shares 114 and cost, at stock Treasury respectively Additional paid-in-capital Retained earnings (loss) income comprehensive other Accumulated interest Noncontrolling ASSETS assets: Current

Q2 2020 Results 10 93 64 71 173 154 659 787 685 994 838 437 170 2019 $ 484

$ 8,433 3,176 7,210 1,223 $ 1,660 1,490 $ $ 1.27 1.25 1,173 1,188 86 76 116 246 203 822 785 998 713 448 Six Months Ended June 30, Six Months 2020 $ 651

$ 9,879 3,582 1,031 1,236 8,530 1,349 $ 2,062 1,614 $ $ 1.38 1.36 1,173 1,185 (2) 45 32 80 73 318 399 356 483 419 705 238 943 120 2019 (In millions, except per share data) (In millions, $ 230

$ 4,305 1,627 3,600 $ $ 823 $ 0.70 0.69 1,175 1,187 64 47 47 133 116 440 423 414 631 512 951 848 269 2020 Three Months Ended June 30, Three Months PayPal Holdings, Inc. Holdings, PayPal $ 360

$ 5,261 1,843 4,310 $ 1,799 1,530 $ $ 1.30 1.29 1,173 1,184 (1) (1) Unaudited Condensed Consolidated Statements of Income Statements Consolidated Condensed Unaudited (1) (1) Total operating expenses operating Total Transaction expense Transaction losses credit and Transaction Customer support and operations and support Customer Sales and marketing development and Technology General and administrative charges other and Restructuring Basic Diluted Basic Diluted Sales and marketing development and Technology General and administrative Customer support and operations and support Customer Includes stock-based compensation as follows: as compensation stock-based Includes (1) Operating expenses: Operating Net revenues Net

Operating income Operating net (expense), income Other taxes income before Income expense tax Income Net income share: per income Net shares: average Weighted Q2 2020 Results 11 4 (1) (7) 45 — — 74 — — 35 (92) (66) (49) 500 659 458 470 (449) (756) (732) (357) (398) (303) 2019 $ 176 $ $ 11,974 13,233 (1,259)

2,498

3,129

(5,957) (2,214)

10,537 (13,191)

2,201

$ 1,490 3 70 78 71 47 31 — (72) (15) (27) (48) 120 590 635 114 639 (421) (399) (739) 2020 Six Months Ended June 30, Six Months $ $ $ 18,004 15,743 2,261

8,519

5,918 (3,000) 6,966

(1,000)

(10,073) (1,134) (3,612) 9,793 (14,844)

3,887 1,031

$ 1,614 (2) 25 — — — 67 — — 30 — (39) (39) (48) (46) (21) (76) 996 569 500 318 228 223 (140) (375) (139) (218) (In millions) 2019 $ 154 $ $ 11,974 10,903 1,071

(1,097)

4,509 (5,053)

1,174

$ 823 1 5 40 67 — 70 — — 63 (19) (30) (27) 106 389 440 297 352 110 533 (200) (733) (193) (890) 2020 Three Months Ended June 30, Three Months $ $ $ 18,004 16,742 1,262

6,278

5,461 (3,000) 3,966

(7,505)

4,282 (11,251)

2,383

$ 1,530 PayPal Holdings, Inc. Holdings, PayPal Unaudited Condensed Consolidated Statements of Cash Flows of Cash Statements Consolidated Condensed Unaudited Transaction and credit losses Depreciation and amortization Stock-based compensation Deferred income taxes investments Unrealized gains on strategic Other Accounts receivable sale, net Changes in loans and interest receivable held for Accounts payable Income taxes payable Other assets and liabilities Changes in assets and liabilities: Cash paid for income taxes, net Cash paid for interest Other financing activities Funds payable and amounts due to customers Repayments under financing arrangements Borrowings under financing arrangements Tax withholdings related to net share settlements of equity awards Tax withholdings related to net share settlements Purchases of treasury stock Proceeds from issuance of common stock Funds receivable Acquisitions, net of cash and restricted cash acquired Maturities and sales of investments Purchases of investments Changes in principal loans receivable, net Proceeds from sales of property and equipment Purchases of property and equipment Adjustments: Net income Supplemental cash flow disclosures: Cash, cash equivalents, and restricted cash at end of period Cash, cash equivalents, and restricted cash at beginning of period Net change in cash, cash equivalents, and restricted cash Effect of exchange rate changes on cash, cash equivalents, and restricted cash Net cash provided by financing activities Cash flows from financing activities: Net cash used in investing activities Cash flows from investing activities: Net cash provided by operating activities operating activities: Cash flows from

Q2 2020 Results 12 5 % 7 % 3 % 4 % 4 % 8 % 4 % 53 % 18 % 18 % 47 % 12 % 12 % 17 % 90 % 10 % 12 % (21) % (21) 2019 2019 June 30, June 30, $ 2,297 2,008 $ 4,305 $ 3,878 427 $ 4,305 1 % 2 % 2 % 2 % 2 % 19 % 53 % 19 % 20 % 47 % 19 % 19 % (1) % (1) 18 % 90 % 24 % 10 % 19 % 2019 2019 September 30, $ 2,327 2,051 $ 4,378 September 30, $ 3,955 423 $ 4,378 1 % 9 % 12 % 19 % 53 % 15 % 16 % 17 % 47 % 13 % 17 % 18 % 15 % 18 % 91 % 14 % 13 % 17 % 2019 2019 December 31, December 31, $ 2,606 2,355 $ 4,961 $ 4,535 426 $ 4,961 Three Months Ended Three Months Ended 2 % 9 % (5) % (5) (9) % (9) (7) % (7) (7) % (7) (5) % (5) (7) % (7) 13 % 53 % 11 % 14 % 47 % 12 % 13 % 13 % 91 % 12 % (In millions, except percentages) (In millions, except percentages) 2020 2020 March 31, March 31, $ 4,215 403 $ 4,618 $ 2,469 2,149 $ 4,618 6 % 7 % 17 % 28 % 94 % 14 % 22 % 15 % 50 % 21 % 30 % 36 % 50 % 14 % 22 % 25 % (22) % (22) (26) % (26) 2020 2020 June 30, June 30, $ 4,945 316 $ 5,261 $ 2,651 2,610 $ 5,261 PayPal Holdings, Inc. Holdings, PayPal : Net revenues derived primarily from revenue earned through partnerships, referral fees, subscription Unaudited Summary of Consolidated Net Revenues of Consolidated Summary Unaudited : Net transaction fees charged to merchants and consumers on a transaction basis primarily based on the volume of activity, or Transaction revenues Total Payment Volume ("TPV"), completed on our Payments Platform, including our PayPal, PayPal Credit, Braintree, Venmo, Xoom, iZettle, and Hyperwallet products and services. We earn additional fees on transactions where we perform currency conversion, when transactions we enable (i.e., cross-border transactions where the merchant miscellaneous fees. or Venmo account to their debit card or bank account, and other customers from their PayPal and consumer are in different countries), to facilitate the instant transfer of Revenues funds from other for value added our services fees, gateway fees, and other services we provide to our merchants and consumers. We also earn revenues from interest and fees earned primarily on balances. and interest earned on certain assets underlying customer our portfolio of loans receivable, • • Current quarter vs prior quarter Current quarter vs prior year quarter Percentage of total Current quarter vs prior quarter Percentage of total Current quarter vs prior year quarter Current quarter vs prior quarter Current quarter vs prior year quarter Current quarter vs prior quarter Current quarter vs prior year quarter Percentage of total Current quarter vs prior quarter Current quarter vs prior year quarter (FXN) Current quarter vs prior year quarter Percentage of total Current quarter vs prior quarter Current quarter vs prior year quarter (FXN) Current quarter vs prior year quarter Net Revenues by Type Transaction revenues Revenues from other value added services Total net revenues Net Revenues by Geography U.S. net revenues International net revenues Total net revenues

We earn revenue from the following types of transactions: from the following We earn revenue Q2 2020 Results 13 5 % 7 % 3 % 3 % 9 % 28 % 24 % 26 % 17 % 0.94 % 0.18 % 54.8 % 2019 June 30, 286 2,973 39.0 $ 172,359 4 % 4 % 3 % 2 % 9 % 25 % 25 % 27 % 16 % 0.95 % 0.19 % 53.4 % 2019 September 30, September 295 3,090 39.8 $ 178,670 3 % 2 % 12 % 12 % 21 % 22 % 22 % 14 % 10 % 0.96 % 0.19 % 53.8 % 2019 December 31, 305 3,461 40.6 $ 199,404 Three Months Ended Three Months 7 % 4 % (6) % (6) % (4) (3) % (3) 15 % 18 % 19 % 17 % (In millions, except percentages) (In millions, 0.91 % 0.31 % 49.5 % 2020 March 31, 325 3,261 39.4 $ 190,567 7 % (1) % (1) — % 26 % 29 % 15 % 16 % 30 % 21 % 0.83 % 0.20 % 56.6 % 2020 June 30, PayPal Holdings, Inc. Holdings, PayPal $ 221,731 346 3,742 39.2 Unaudited Supplemental Operating Data Operating Supplemental Unaudited (3) (2) (6) (5) (TPV) is the value of payments, net of payment reversals, successfully completed on our Payments Platform or enabled by PayPal (4) (7) (1) Number of payment transactions per active account reflects the total number of payment transactions within the previous 12-month period, divided by An active account is an account registered directly with PayPal or a platform access partner that has completed a transaction on our Payments Platform or Number of payment transactions are the total number of payments, net of payment reversals, successfully completed on our Payments Platform or enabled Transaction margin is total revenue less transaction expense and transaction and credit loss, divided by total revenue. Transaction expense rate is calculated by dividing transaction expense by TPV. Transaction expense rate is calculated by dividing Transaction and credit loss rate is calculated by dividing transaction and credit loss by TPV. Total Payment Volume Current quarter vs prior year quarter Current quarter vs prior Current quarter vs prior year quarter Current quarter vs prior quarter Current quarter vs prior quarter Current quarter vs prior quarter Current quarter vs prior Current quarter vs prior quarter (FXN) Current quarter vs prior year quarter Current quarter vs prior year quarter Current quarter vs prior Current quarter vs prior year quarter active accounts at the end of the period. (6) (7) (4) (5) through our Honey Platform, not including gateway-exclusive transactions, within the past 12 months. through our Honey Platform, not including gateway-exclusive (2) (3) Amounts in the table are rounded to the nearest million, amounts provided. except as otherwise noted. As a result, certain amounts (1) may not recalculate using the rounded by PayPal via a partner payment solution, not including gateway-exclusive transactions. by PayPal via a partner payment solution, not including transactions. via a partner payment solution, not including gateway-exclusive Active accounts Transaction and Credit Loss Rate Transaction Margin Payment transactions per active account Payment transactions Transaction Expense Rate Number of payment transactions Number of payment Total Payment Volume Q2 2020 Results 14 These are

. This consists of expenses for equity awards under our equity This consists of expenses for equity awards PayPal Holdings, Inc. Holdings, PayPal . We record gains and losses on our strategic investments related to our interest in companies . We record gains and losses on our strategic Non-GAAP Measures of Financial Performance of Financial Measures Non-GAAP This adjustment is made to present stock-based compensation and the other amounts described ts and goodwill in connection with acquisitions intangible assets and goodwill in connection with acquisitions We incur amortization or impairment of acquired

t and disposal costs. The company excludes significant and other exit and disposal costs. The company excludes These consist of expenses for employee severance om our non-GAAP measures primarily because they are non-cash expense from our non-GAAP measures primarily because incentive plans. We exclude stock-based compensation of exercises and ve are dependent on our stock price and the timing and size sting of expenses. The related employer payroll taxes it correlates to the limited to no control, and as such management does not believe equity awards, over which management has operation of our business. from the acquisiti assets, impairment of goodwill, and transaction expenseson or Amortization or impairment of acquired intangible disposal of a business. h have not significant gains, losses, benefits, or charges during a period that are the result of isolated events or transactions whic its occurred frequently in the past and are not expected to occur regularly in the future. The company excludes these amounts from non-GAAP results because management does not believe they are indicative of our current or ongoing operating results. Tax effect of non-GAAP adjustments. above on an after-tax basis consistent with the presentation of non-GAAP net income Stock-based compensation expense and related employer payroll taxes. Stock-based compensation expense and related and theref transactional expenses from the acquisition or disposal of a businessore exclude and may incur significant gains or losses or are reflective of our We exclude these items because management does not believe they these amounts from our non-GAAP measures. ongoing operating results. Restructuring. results. does not believe they are reflective of ongoing operating restructuring charges primarily because management Gains and losses on strategic investments uch gains and losses in full because we lack control over the We exclude such gains and losses in full because we lack operations over which we have limited control and visibility. of the investee and the related gains and losses are not indicative of our ongoing operating results. Certain other significant gains, losses, benefits, or charges that are not indicative of the company’s core operating results. nd operating In addition to the non-GAAP measures discussed above, the company also analyzes certain measures, including net revenues a ves that expenses, on an FX-neutral basis to better measure the comparability of operating results between periods. The company belie nues and changes in foreign currency exchange rates are not indicative of the company’s operations and evaluating growth in net reve h operating expenses on an FX-neutral basis provides an additional meaningful and comparable assessment of these measures to bot th the prior period’s management and investors. FX-neutral results are calculated by translating the current period’s local currency results wi od’s results, exchange rate. FX-neutral growth rates are calculated by comparing the current period’s FX-neutral results by the prior peri excluding the impact from hedging activities. operty and The company also uses free cash flow, a non-GAAP measure. Free cash flow represents operating cash flows less purchases of pr nvestors equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and i n be used to, about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can the itation of the among other things, invest in the company’s business, make strategic acquisitions and investments, and repurchase stock. A lim n the company’s cash utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease i balance for the period. atements presented in accordance with generally accepted accounting with generally accepted in accordance financial statements presented consolidated the company’s condensed To supplement measures These non-GAAP of financial performance. of certain components uses non-GAAP measures or GAAP, the company principles, margin, non- non-GAAP operating operating income, per share, non-GAAP non-GAAP diluted earnings net income, include non-GAAP free cash flow. flow, and adjusted tax rate, free cash GAAP effective and may be with GAAP prepared in accordance or an alternative to, measures in accordance with, measures are not These non-GAAP measures are not based on any comprehensive set addition, these non-GAAP measures used by other companies. In different from non-GAAP not reflect all of the amounts associated with the ations in that they do principles. Non-GAAP measures have limit of accounting rules or should only be used to evaluate the company’s h GAAP. These measures as determined in accordance wit company’s results of operations P measures. conjunction with the corresponding GAA results of operations in included in this press release can be found in the all non-GAAP measures directly comparable GAAP measure of Reconciliation to the most press release. tables included in this company’s current financial performance and its all understanding of the are provided to enhance investors’ over These non-GAAP measures ent and provide useful information to both managem Specifically, the company believes the non-GAAP measures prospects for the future. ng results and not be indicative of its core operati certain expenses, gains and losses, as the case may be, that may investors by excluding ny believes that results to investors, the compa because the company has historically reported certain non-GAAP business outlook. In addition, reporting. company’s financial measures provides consistency in the the inclusion of non-GAAP measures that further below, the company’s management uses financial do not include For its internal budgeting process, and as discussed of acquire payroll taxes on stock-based compensation, amortization or impairmentd intangible stock-based compensation expense, employer that are charges, certain other gains, losses, benefits, or charges not indicative of the assets, impairment of goodwill, restructuring-related GAAP measures, the taxes associated with the foregoing. In addition to the corresponding company’s core operating results, and the income non-GAAP measures in reviewing the financial results of the company. company’s management also uses the foregoing non-GAAP operating from non-GAAP net income, non-GAAP diluted earnings per share, The company excludes the following items non-GAAP effective tax rate: income, non-GAAP operating margin, and

Q2 2020 Results 15

December 31, 2018. 31, December

June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018 include (gains) losses related to the sale of our U.S. consumer credit receivables portfolio executed during the year ended ended year the during executed portfolio receivables credit consumer U.S. our of sale the to related losses (gains) include 2018 30, September and 2018, 31, December 2019, 31, March 2019, 30, June •

December 31, 2019 includes an award for a legal proceeding. proceeding. legal a for award an includes 2019 31, December •

for a legal proceeding based on the final settlement. settlement. final the on based proceeding legal a for

March 31, 2020 includes $15 million of expenses related to pre-acquisition contingencies of an acquired company identified outside of the measurement period and an adjustment of $4 million to an award award an to million $4 of adjustment an and period measurement the of outside identified company acquired an of contingencies pre-acquisition to related expenses of million $15 includes 2020 31, March •

ovements in conjunction with exiting certain leased properties. leased certain exiting with conjunction in ovements impr leasehold related and asset lease right-of-use for charges

June 30, 2020 includes $7 million of additional expenses related to pre-acquisition contingencies of an acquired company identified outside of the measurement period period measurement the of outside identified company acquired an of contingencies pre-acquisition to related expenses additional of million $7 includes 2020 30, June • $21 million of asset impairment impairment asset of million $21 and

, include the following: following: the include , applicable as presented, periods the for ended months three The

(1) (1)

Non-GAAP operating margin operating Non-GAAP 21 % 21 % 21 % 22 % 23 % 23 % 23 % 24 % 20 % 28

Non-GAAP operating income operating Non-GAAP $ 820 820 $ 787 $ 913 $ 934 $ 998 $ 1,026 $ 1,173 $ 908 $ 1,485 $

adjustments 248 248 297 315 416 293 329 374 510 534

Total non-GAAP operating income income operating non-GAAP Total

Acquisition related transaction expense transaction related Acquisition — — 17 7 — — — 3 20 —

— — 28 12 (5) (2) — 23 11 28 Other

(1)

Restructuring — — — — 78 — — — 29 26

Amortization of acquired intangible assets intangible acquired of Amortization 25 25 33 59 57 51 52 51 114 115

employer payroll taxes payroll employer 223 223 219 237 286 244 277 297 336 365

Stock-based compensation expense and related related and expense compensation Stock-based

GAAP operating income operating GAAP $ 572 572 $ 490 $ 598 $ 518 $ 705 $ 697 $ 799 $ 398 $ 951 $

(unaudited)

(In millions, except percentages) except millions, (In

2019 2020 2020 2019 2018 2018 2019 2019 2018

December 31, 31, December 31, March 30, June September 30, September September 30, 30, September 31, December 31, March 30, June June 30, 30, June

Three Months Ended Months Three

argin M Operating Non-GAAP to Margin Operating GAAP of Reconciliation PayPal Holdings, Inc. Holdings, PayPal Q2 2020 Results 15 15 Results 2020 Q2

Q2 2020 Results 16

June 30, 2018 includes tax expense related to the Tax Act. Tax the to related expense tax includes 2018 30, June •

of intellectual property. intellectual of transfer intra-group to related million $11 and Act Tax the o t related million $3 of expense tax includes 2018 30, September •

y. propert intellectual of transfer intra-group to related illion m $9 of expense tax and Act") ("Tax Act Jobs and Cuts Tax the o t related million $15 of benefit tax includes 2018 31, December •

tual property. tual intellec of transfer intra-group to related expense (benefit) x ta include 2019 31, December and 2020, 31, March 2020, 30, June •

, include the following: following: the include , applicable as presented, periods the for ended months three The

(2) (2)

m 8-K filed with the SEC on April 9, 2020. 9, April on SEC the with filed 8-K m For our in described as reclassification of impact the Reflects

(1) (1)

Non-GAAP effective tax rate tax effective Non-GAAP 18 % 18 % 16 % 17 % 18 % 17 % 14 % 17 % 12 % 13

income 4 % 4 % (2) % 2 % 11 % 4 % 9 % (24) % (56) % (2)

Tax effect of non-GAAP adjustments to net net to adjustments non-GAAP of effect Tax

GAAP effective tax rate tax effective GAAP 14 % 14 % 18 % 15 % 7 % 13 % 5 % 41 % 68 % 15

calculation 1,202 1,202 1,199 1,196 1,188 1,187 1,188 1,187 1,185 1,184

Shares used in non-GAAP diluted share share diluted non-GAAP in used Shares

Shares used in GAAP diluted share calculation share diluted GAAP in used Shares 1,202 1,202 1,199 1,196 1,188 1,187 1,188 1,187 1,185 1,184

Non-GAAP Non-GAAP $ 0.56 0.56 $ 0.58 $ 0.65 $ 0.66 $ 0.71 $ 0.76 $ 0.83 $ 0.66 $ 1.07 $

GAAP GAAP $ 0.44 0.44 $ 0.36 $ 0.49 $ 0.56 $ 0.69 $ 0.39 $ 0.43 $ 0.07 $ 1.29 $

Diluted net income per share: per income net Diluted

Non-GAAP net income net Non-GAAP $ 676 676 $ 695 $ 783 $ 786 $ 848 $ 900 $ 988 $ 786 $ 1,263 $

(99) (99) (52) (54) (117) $ (50) (119) (85) (191) 104 Tax effect of non-GAAP adjustments non-GAAP of effect Tax

(1)

32 32 14 (6) — — — 230 259 (17) Other

(2)

(31) (31) — (56) (180) (218) 228 (38) 124 (888) (Gains) losses on strategic investments strategic on losses (Gains)

(1)

(see table above) table (see 248 248 297 315 416 293 329 374 510 534

Non-GAAP operating income adjustments adjustments income operating Non-GAAP

Non-GAAP adjustments to net income: net to adjustments Non-GAAP

GAAP net income net GAAP 526 526 436 584 667 823 462 507 84 1,530

GAAP income tax expense tax income GAAP 83 83 97 102 50 120 22 347 179 269

GAAP income before income taxes income before income GAAP $ 609 609 $ 533 $ 686 $ 717 $ 943 $ 484 $ 854 $ 263 $ 1,799 $

(unaudited)

(In millions, except per share data and percentages) and data share per except millions, (In

2020 2019 2020 2019 2018 2019 2019 2018 2018

June 30, 30, June December 31, 31, December 31, March September 30, September December 31, 31, December 31, March 30, June September 30, September June 30, June

Three Months Ended Months Three

and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate Tax Effective Non-GAAP to Rate Tax Effective GAAP and

GAAP Diluted EPS to Non-GAAP Diluted EPS, EPS, Diluted Non-GAAP to EPS Diluted GAAP Reconciliation of GAAP Net Income to Non-GAAP Net Income, Income, Net Non-GAAP to Income Net GAAP of Reconciliation Q2 2020 Results 16 16 Results 2020 Q2

Q2 2020 Results 17

Adjusted free cash flow cash free Adjusted $ 737 737 $ 772 $ 910 $ 809 $ 1,035 $ 923 $ 1,090 $ 1,298 $ 2,190 $

portfolio on cash flow from operating activities operating from flow cash on portfolio 907 907 (3,675) — — — — — — —

related to our U.S. consumer credit receivables receivables credit consumer U.S. our to related

Impact of held for sale accounting presentation presentation accounting sale for held of Impact

Free cash flow cash Free $ (170) (170) $ 4,447 $ 910 $ 809 $ 1,035 $ 923 $ 1,090 $ 1,298 $ 2,190 $

Less: Purchases of property and equipment and property of Purchases Less: (198) (198) (223) (224) (218) (139) (173) (174) (206) (193)

Net cash provided by operating activities operating by provided cash Net $ 28 28 $ 4,670 $ 1,134 $ 1,027 $ 1,174 $ 1,096 $ 1,264 $ 1,504 $ 2,383 $

(In millions/unaudited) (In

2019 2020 2020 2019 2018 2019 2019 2018 2018

December 31, 31, December 31, March 30, June September 30, September December 31, 31, December 31, March 30, June September 30, September June 30, 30, June

Three Months Ended Months Three

usted Free Cash Flow Cash Free usted Adj and Flow Cash Free to Flow Cash Operating of Reconciliation PayPal Holdings, Inc. Holdings, PayPal Q2 2020 Results 17 17 Results 2020 Q2