q120paypalearningsreleas

PAYPAL HOLDINGS, INC. (NASDAQ: PYPL) First Quarter 2020 Results San Jose, California, May 6, 2020 Q1’20: Solid results as the economy rapidly changed • 20.2 million net new active accounts added, including a one-time addition of 10.2 million in January from the acquisition of Honey; 10 million net new actives added–a Q1 record • 18% TPV growth (19% FX-neutral); 12% revenue growth (13% FX-neutral) • GAAP EPS of $0.07 and non-GAAP EPS of $0.66; includes $0.17 negative impact from increasing credit loss reserves due to revised macroeconomic projections • $1.5 billion in cash flow from operations with $1.3 billion in free cash flow Q2’20: Accelerating April business trends driving strong Q2 outlook • 7.4 million net new active accounts added in April ’20 growing 135%; ~250,000 daily net new active accounts added, on average • April ’20 revenue grew ~17% (~20% FX-neutral growth); expect ~15% FX-neutral revenue growth for Q2’20 • Expect GAAP EPS to decline by 28%–34% and non-GAAP EPS to grow by 15%–20% Q1’20 Results PayPal delivered revenue growth of 12% (13% on a foreign- As our platform sees record currency neutral basis or FX-neutral or FXN); 17% (18% FXN) increases in both new growth through February with 3% (5% FXN) growth in March; customer accounts and April revenue growth of ~17% (~20% FXN) transactions, it is clear that • On February 27, PayPal updated its Q1’20 revenue outlook indicating an PayPal’s products are more ~1% reduction in revenue growth, relative to the guidance provided on January 29, based primarily on COVID-19’s impact on international cross- important and relevant than border e-commerce. ever before. The strength of • In March, the deteriorating environment resulting from COVID-19 further our customer value proposition impacted PayPal’s business, affecting both volumes and revenue generated from combined with the acceleration travel and events verticals as well as impacting credit income. of digital payments adoption • GAAP and non-GAAP operating income was reduced by a $237 million increase significantly accelerated in in credit loss reserves due to revised macroeconomic projections. April, with increased demand • On a diluted EPS basis, the increase in credit loss reserves negatively affected GAAP and non-GAAP EPS by $0.17. and engagement.” • GAAP EPS was also negatively impacted by approximately $0.22 per diluted share from taxes primarily related to the acquisition of Honey, and $0.07 Dan Schulman President and CEO per diluted share of net unrealized losses (versus $0.12 of unrealized gains in Q1’19), driven primarily by PayPal’s strategic investment in MercadoLibre.

Q1 2020 Results 2 60% YoY $1.30B 13% Q1’20 $4.62B Q1’20 46% $1.50B 18% Q4’19 $4.96B +60% YoY 20% $1.09B Q4’19 19% 2 Q3’19 $4.38B 11% $1.26B 1 3 Free Cash Flow Free +13% ■ $1.30B $1.30B 12% Q2’19 $4.31B 20% $923M / Q3’19 ** $1.10B 12% Q1’19 YoY $4.13B 3 Net Revenues $4.62B 40% $1.04B CFO and EVP, Global Customer Operations Global Customer and EVP, CFO Operating Cash Flow Operating Cash Flow The diversity of our platform and of our platform The diversity productsbase across customer and positionsgeographies during us well cash this unprecedented Our free time. balance sheet allow and strong flow the to serve us to continue investing needs of our customers.” John Rainey ■ Q2’19 ** $1.17B +46% +46% 19% 3 Q1’20 $191B 10% $809M 12% —% YoY Q1’19 (3%) ** 22% Q4’19 (TPV) $199B $1.03B 1 Change Operating Cash Flow / Free Cash Flow / Free Operating Flow Cash $1.50B YoY 27% Q3’19 $179B Non-GAAP $0.66 $0.9B USD $ $4.62B 0% $0.66 +19% 26% Q2’19 $172B Q1’20 $0.07 (87%) 12% YoY YoY YoY 25% Q1’19 $161B (23%) (87%) Change Total Payment Volume Total $191B 27% $0.83 0% GAAP Q4’19 $0.43 (13%) $0.07 $0.4B USD $ $4.62B 17% 325M Q1’20 31% $0.66 $0.66 $0.76 Non-GAAP ■ / Q3’19 7% 14% Q4’19 305M $0.39 2 GAAP ■ YoY YoY YoY 27% 16% $0.71 Q3’19 295M Q2’19 58% $0.69 17% Q2’19 286M +17% (87%) (87%) 16% $0.66 17% Q1’19 Q1’19 277M EPS Operating Income Net Revenues Adjusted Free Cash Flow”GAAP financial measure. of this non-GAAP a reconciliation comparable for to the most directly financial measure Free Adjusted portfolio credit consumer to SYF sale of U.S. for Adjusted On an FX-neutral basis On an FX-neutral and Flow Cash Free to Flow of Operating non-GAAP Cash to the “Reconciliation are refer Please financial measures. Cash Flow Non-GAAP and Free EPS 34% $0.56 GAAP / Non-GAAP EPS 3. ** Not meaningful 1. 2. $0.07 325M 325M Total Active Accounts Active Total Key Financial and Operating Metrics Financial Key

Q1 2020 Results 3 PayPal drew down $3.0 billion from its revolving credit facilities in March 2020. credit its revolving $3.0 billion from down PayPal drew 26% growth through February with 7% growth in March; April at ~22% growth FXN. in March; April at ~22% growth with 7% growth February through 26% growth ServicesMerchant 21% FXN. 20% and grew volume 48%. growing than $31 billion of TPV, more processed Venmo account on a trailing 40.7 payment transactions per active to Honey, related accounts the net new active Excluding 7%. months basis, up twelve A Q1 record of 10 million net new active accounts added with a one-time addition of 10.2 million net new active accounts net new active of 10 million A Q1 record accounts in January the acquisition of Honey. from GAAP EPS also includes a net unrealized loss of $0.07 on strategic investments, driven primarily by MercadoLibre MercadoLibre primarily by driven loss of $0.07 on strategic investments, a net unrealized GAAP EPS also includes (NASDAQ: MELI). to the acquisition primarily related taxes impact from $0.22 of negative an approximate GAAP EPS also includes of Honey. GAAP and non-GAAP EPS include $0.17 of negative impact from increased credit loss reserves due to macroeconomic due to macroeconomic loss reserves credit increased GAAP and non-GAAP impact from EPS include $0.17 of negative projections. PayPal’s cash, cash equivalents, and investments totaled $12.6 billion as of March 31, 2020. PayPal closed the acquisition cash, cash equivalents, and investments PayPal’s $3.6 billion in cash to fund the purchase. of Honey in January using approximately long-term debt totaled $8.0 billion as of March 31, 2020. PayPal’s • flow of $1.3 billion. free cash from operations of $1.5 billion and cash flow PayPal generated In the first quarter, • • • months basis, up 4%. on a trailing twelve account 39.4 payment transactions per active • 20.2 million net new active accounts, bringing total active accounts to 325 million accounts, up 17%. accounts to 325 million accounts, up accounts, bringing total active 20.2 million net new active • ~1.2 billion payment transactions in April, up 20%. 3.3 billion payment transactions, up 15%. (TPV), up 18% and 19% FXN. $191 billion in total payment volume • • of common stock, shares 7.5 million million to stockholders. $800 returning approximately Repurchased GAAP operating margin of 8.6% with non-GAAP operating margin of 19.7%. Credit loss reserves increased by $237 million by increased GAAP operating of 8.6% with non-GAAP margin loss reserves operating 19.7%. Credit of margin projections. macroeconomic due to revised 87%; non-GAAP decreasing GAAP EPS of $0.07, year. flat to last EPS of $0.66, • Revenue of $4.62 billion, growing 12% on a spot 12% and 13% FXN. basis of $4.62 billion, growing Revenue • • Strong balance sheet and cash-flow generation balance sheet Strong and cash-flow • • • • Double-digit driving increased engagement customer growth • • • Solid performance financial metrics across • • Balance Sheet and Liquidity Q1’20 Operating Highlights Q1’20 Financial Highlights Financial Q1’20

Q1 2020 Results 4 20% ~ Apr’20 5% Mar’20 20% 1 Feb’20 16% Jan’20 Net Revenue ~20% 22% ~ Apr’20 1 7% Mar’20 28% Feb’20 24% Jan’20 Total Payment Volume Total ~22% 7.4M Apr’20 3.9M Mar’20 3.1M Feb’20 3.0M Jan’20 Waiving certain fees for merchants through at least May through 31, 2020. Waiving certain fees for merchants to customer disputes. time to respond more merchants to give window the dispute resolution Increasing on all PayPal Business Debit purchases Mastercard reward doubled the instant cash back In partnership with Mastercard, for the month of April. Participating in the U.S. Small Business Administration’s Paycheck Protection Program to provide access to funding to access to funding to provide Program Protection Paycheck Administration’s Small Business Participating in the U.S. small businesses. Venmo. PayPal and stimulus payments through Department of the Treasury U.S. Enabling customers to receive Granting on business loans and cash advances at no additional cost. deferral of repayments ~1.2 billion payment transactions, up 20%. ~1.2 billion payment basis. up ~20% on a spot an FX-neutral basis and ~22% on ~$68 billion in TPV, partially experiences were checkout in PayPal and Venmo Strength basis. or ~20% on an FX-neutral growth ~17% revenue verticals and credit. events and travel from revenue by lower offset 7.4 million net new active accounts, growing 135%; ~250,000 daily net new active accounts added, on average. ~250,000 daily net new active 135%; accounts, growing active 7.4 million net new 7.4M Net New Active Accounts Net New Active FX-neutral growth rates growth FX-neutral • • • • • PayPal is helping its customers affected by COVID-19 affected PayPal is helping its customers • 1. • • Accelerating April business trends April business Accelerating • • Supporting Impacted by COVID-19 Customers April ‘20 Results April

Q1 2020 Results 5 13% 13% 19% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A FX-Neutral YoY Growth YoY 12% 12% 18% —% —% 46% 60% (87%) (87%) 61.1pts (5.1pts) (393bps) (296bps) YoY Growth YoY ** ** ** ** — — $477 $489 $490 $490 ($583) ($0.49) $29,075 7.0% $786 $667 $809 17.5% $0.56 $0.66 12.5% 22.6% $1,027 $4,128 $4,128 Q1 2019 $161,492 $84 8.6% $786 $0.07 $0.66 19.7% 68.1% 12.4% $1,298 $4,618 $4,618 $1,504 Q1 2020 $190,567 Effective tax rate tax Effective Net income perEarnings diluted share cash flow Free Net revenues Operating margin Net income perEarnings diluted share operating by activities Net cash provided Net revenues Operating margin rate tax Effective 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 Q1’20 Financial and Operating and Highlights Financial Q1’20

Q1 2020 Results 6 Estimated non-GAAP amounts for the three months ending June 30, 2020, reflect adjustments of approximately adjustments of approximately Estimated non-GAAP months ending June 30, 2020, reflect amounts for the three in the range of taxes compensation payroll expense and related stock-based $465–$525 million, including estimated $310–$330 million. GoPay impact of the acquisitions of Honey and The dilutive is estimated to beGAAP in the range of $0.10–$0.12 on an estimated $0.02–$0.04 on non-GAAP and earnings per share, diluted earnings per diluted share. 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 PayPal’s or losses from gains does guidance GAAP earnings per not include any expectation share diluted of unrealized portfoliosecond quarter of 2020. in the strategic investment gains $0.14 of net unrealized perIn the second quarter of 2019, GAAP earnings included approximately diluted share portfolio. investment strategic PayPal’s from • • • • • PayPal expects revenue to grow ~13% at current spot and ~15% FXN. rates ~13% at current to grow PayPal expects revenue 15%–20%. PayPal expects non-GAAP 28%–34% and by decline by GAAP EPS to EPS to grow PayPal is withdrawing its full year 2020 revenue and earnings guidance. 2020 revenue its full year PayPal is withdrawing financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, can comparable GAAP measures, reconciliations of certain non-GAAP their most directly to financial information and measures of In addition, an archive at https://investor.paypal-corp.com. Relations website Investor the company’s be accessed through the same link.the webcast will be through accessible for 90 days Quarterly Conference Call and Webcast Quarterly Conference results and second quarter 2020 guidance at 2:00 2020 call to discuss first quarter PayPal Holdings, Inc. will host a conference that includes supplemental with a slide presentation call, together webcast of the conference A live Pacific Time today. p.m. Please see “Non-GAAP Financial Measures” and “Non-GAAP Measures of Financial Performance” for important additional information. • Second Quarter 2020 Revenue and Earnings Guidance and Earnings Revenue Second 2020 Quarter • Full Year 2020 Revenue and Earnings Guidance Earnings and Revenue 2020 Year Full • Financial Guidance Financial

Q1 2020 Results 7 could disrupt business, reduce revenue, increase costs, harm our competitive position or our reputation, or lead to liability; the position costs, harm our competitive or our reputation, increase revenue, could disrupt business, reduce the outcome of legal and regulatory proceedings and PayPal’s need and ability to manage regulatory, tax and litigation risks need and ability to manage regulatory, the outcome of legal and regulatory and PayPal’s proceedings changes to PayPal’s restrictive; jurisdictions and applicable laws become more in more and services offered as its products are capital allocation or management of operating the implementation and impact of the United cash; uncertainty surrounding Union; cyberattacks the European and services and security vulnerabilities in PayPal products withdrawal from that Kingdom’s into effect; the impact of PayPal’s customer choice initiatives, including on its funding mix and transaction expense; PayPal’s and transaction expense; including on its funding mix customer choice initiatives, PayPal’s into effect; the impact of PayPal’s and services,for its businesses, products, including environment ability to successfully compete competitive in an increasingly importance of digital and mobile payments and mobile commerce; and the increasing competition for consumers and merchants specific to PayPal’s payment platform, including the PayPal, PayPal Credit, Braintree, Venmo, Xoom, iZettle, Honey, and other Xoom, iZettle, Honey, Venmo, Braintree, payment platform, including the PayPal, PayPal Credit, specific to PayPal’s and services new products introduce and support and servicesproducts especially as PayPal continues to expand geographically, to payments and financial services technologies and payment methods related come across and as new laws and regulations even after the COVID-19 outbreak has subsided; the effect of political, business, economic, market, and trade conditions, after the COVID-19 has subsided; the effect of even political, business, economic, market, outbreak or crisis and any conditions that affect payments or e-commerce or general economic downturn including any regional growth; and other risks association-related payment card regulatory, rates; the competitive, exchange currency fluctuations in foreign press release, and are inherently subject to numerous risks and uncertainties. Accordingly, actual results could differ materially actual results risks and uncertainties. Accordingly, subject to numerous inherently and are release, press that could cause or contribute to such differences forward-looking statements. Factors or implied by those predicted from business, financial condition of the COVID-19 impact on PayPal’s and indirect outbreak not limited to: the direct include, but are and other business partners, customers, suppliers, vendors of operations as the operations as well of PayPal’s and results expressions. Forward-looking statements include, but are not limited to, statements regarding projected financial results for financial projected statements regarding not limited to, statements include, but are Forward-looking expressions. businesses. Forward-looking of PayPal’s growth future second quarter 2020, impact and timing of acquisitions, and projected to PayPal as of the date of this based upon as information known various estimates and assumptions, as well statements are financial condition, expectations, and plans of PayPal Holdings, Inc. and its consolidated subsidiaries that reflect PayPal’s current 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 similar “forecast,” “project,” “plan,” “opportunity,” “future,” “strategy,” “intend,” “estimate,” “believe,” “anticipate,” “expect,” This press release contains forward-looking statements relating to, among other things, the future results of operations, results among other things, the future contains forward-looking to, statements relating release This press Effective Tax Rate,” and “Reconciliation of Operating Cash Flow to Free “Reconciliation of Operating and to Free Cash Flow Free to Cash Flow.” Cash Flow Adjusted Tax Rate,” Effective Statements Forward-looking reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see “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 GAAP Measures of Financial Performance” included in this press release. These measures may be different from non-GAAP from may be different These measures release. GAAP Measures included in this press of Financial Performance” under any prepared is not of this financial information, which The presentation by other companies. used financial measures or as a substitute for, set of accounting rules or principles, is not intended to be in isolation of, considered comprehensive For a principles (GAAP). with generally accepted accounting in accordance and presented the financial information prepared This press release includes financial measures defined as “non-GAAP by the SEC including: non-GAAP includes financial measures measures” financial net release This press income, non-GAAP non-GAAP earnings per diluted share, operating non-GAAP income, operating non-GAAP margin, effective non-GAAP please see “Non- For an explanation of the foregoing measures, cash flow. and adjusted free cash flow tax rate, free Non-GAAP Measures Financial identification of events prior to the filing of our second quarter 2020 financial results on Form 10-Q with the results on the filing of our second quarter 2020 financial prior to identification of events Securities and Commission. Exchange amounts and rates may not sum or recalculate using the rounded dollar amounts provided. All financial and operating All data in provided. dollar amounts using the rounded not sum or recalculate amounts and rates may as results, including Actual these preliminary may differ materially from results April 2020 is preliminary. for release this press or adjustments, and the subsequent occurrence and normal quarter-end of the completion of procedures accounting a result translating the current period local currency results by the prior period exchange rate. FX-neutral growth rates are calculated by calculated by rates are growth FX-neutral rate. the prior period period by exchange the current translating results local currency hedging activities. All the impact from prior period with the excluding results results, periodcomparing the current FX-neutral as otherwise noted. As millions, except the nearest to certain dollars, rounded a result, in U.S. presented amounts in tables are Presentation calculated by are results as otherwise noted. FX-neutral comparisons, except year-over-year represent rates All growth

Q1 2020 Results 8 Media Relations Contact Media Relations Amanda Miller amandacmiller@paypal.com 408.219.0563 © 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 amoorthy@paypal.com Investor Relations Contacts Relations Investor Gabrielle Rabinovitch grabinovitch@paypal.com The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these investors be these channels may The information that is posted Accordingly, deemed material. through filings with the Commission (“SEC”), releases, press Securities and Exchange public conference channels in addition to PayPal’s calls, and webcasts. paypal), Dan Schulman’s LinkedIn profile (https://www.linkedin.com/in/dan-schulman/), John Rainey’s LinkedIn profile (www. profile LinkedIn John Rainey’s (https://www.linkedin.com/in/dan-schulman/), profile LinkedIn paypal), Dan Schulman’s as page (https://www.facebook.com/DanSchulmanPayPal/) Facebook Dan and Schulman’s linkedin.com/in/john-rainey-pypl) a means of disclosing information about obligations under Regulation FD. and for complying with its disclosure the company PayPal Holdings, Inc. uses its Investor Relations website (https://investor.paypal-corp.com), its PayPal Newsroom (https:// its PayPal Newsroom (https://investor.paypal-corp.com), website Relations PayPal Holdings, Inc. uses its Investor page (https://www.linkedin.com/ handles (@PayPal and @PayPalNews), LinkedIn Twitter newsroom.paypal-corp.com), channel (https://www.youtube.com/ YouTube page (https://www.facebook.com/PayPalUSA/), Facebook company/paypal), make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering more than more is empowering the PayPal platform and secure, affordable, convenient, financial services more and commerce make information, more For in the global economy. to join and thrive than 200 markets in more 300 million consumers and merchants visit paypal.com. About PayPal technology By leveraging to than 20 years. for more of the digital payment revolution at the forefront PayPal has remained the forward-looking statements in this press release. PayPal assumes no obligation to update PayPal assumes no obligation such forward-looking release. the forward-looking statements. statements in this press most recent annual report on Form 10-K and its subsequent quarterly reports on Form 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 should not place undue reliance you discussed above, the reasons speaks as of Mayinformation in this release 2020. For 6, 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” forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be not include the potential do forward-looking in this release statements or divestitures impact of any acquisitions completed after the date hereof. announced and/or adding new products and features in a timely fashion; risks that planned acquisitions will not be that planned acquisitions a timely fashion; risks in and features on contemplated completed products adding new may not perform with its expectations; that any businesses PayPal may acquire terms, or at all, and in accordance and PayPal’s The in the future. or may be acquired acquired been businesses that have manage, and grow integrate, ability to profitably effect of management changes and business initiatives; any changes PayPal may make to its product and service product to its the offerings; PayPal may make any changes and business initiatives; management changes effect of PayPal’s customers; the COVID-19any natural disasters, effect of on PayPal or PayPal’s interruptions or other business outbreak service and customer technology its infrastructure, upgrade and develop ability to timely reasonable capabilities at systems, and performance Honey Platform while Platform and of its Payments security, stability, to maintain the ability cost; PayPal’s

Q1 2020 Results 9 ) ) 73 — — 44 435 800 778 232 31, (173 7,349 3,412 3,972 2,863 1,693 6,212 1,292 2,087 2,520 4,965 8,342 (6,872 22,527 38,495 51,333 24,527 26,919 34,404 15,588 16,885 16,929 51,333 2019 December $ $ $ $ ) ) — — 44 412 217 139 (120 7,854 2,332 3,712 1,057 2,366 1,646 9,124 1,369 1,577 2,276 2,839 7,967 8,258 (7,672 38,184 27,449 38,255 16,011 22,817 54,266 24,817 15,501 15,967 54,266 2020 millions, except par value) par (In millions, except 31, March $ $ $ $ PayPal Holdings, Inc. Holdings, PayPal equity Unaudited CondensedUnaudited Sheets Balance Consolidated current assets Total assets Total current liabilities Total liabilities Total PayPal Stockholders’ Total equity Total liabilities and equity Total Cash and cash equivalents Short-term investments net Accounts receivable, net Loans and interest receivable, customer accounts Funds receivable and other current assets Prepaid expenses and Accounts payable Funds payable and amounts due to customers Accrued expenses and other current liabilities Income taxes payable Long-term investments Property and equipment, net Goodwill Intangible assets, net Other assets AND EQUITY LIABILITIES Current liabilities: liabilities Deferred tax liability and other long-term Long-term debt Equity: as of Common stock, $0.0001 par value; 4,000 shares authorized; 1,173 shares outstanding both March 31, 2020 and December 31, 2019 Preferred stock, $0.0001 par value; 100 shares authorized, unissued as of March 31, 2020 and December 31, 2019, and 105 shares at cost, 113 stock Treasury respectively Additional paid-in-capital Retained earnings Accumulated other comprehensive income (loss) Noncontrolling interest ASSETS Current assets:

Q1 2020 Results 10 73 50 48 32 93 81 341 388 329 511 419 518 199 717 667 254 0.57 0.56 4,128 1,549 3,610 1,171 1,188 2019 $ $ $ $ $ ) 29 84 52 39 87 591 399 371 605 486 398 263 179 113 291 0.07 0.07 (135 1,739 1,173 1,185 4,618 4,220 2020 Three Months Ended March 31, March Months Ended Three (In millions, except per share data) share except per (In millions, $ $ $ $ $ PayPal Holdings, Inc. Holdings, PayPal (1) (1) Unaudited CondensedUnaudited of Income Statements Consolidated (1) (1) Total operating expenses Total Transaction expense Transaction and credit losses Transaction operations Customer support and Sales and marketing and development Technology General and administrative Restructuring and other charges Basic Diluted Basic Diluted Customer support and operations Sales and marketing and development Technology General and administrative Includes stock-based compensation as follows: Includes stock-based compensation as (1) Operating expenses: Operating income Other income (expense), net Income before income taxes Income tax expense Net income Net income per share: average shares: Weighted Net revenues

Q1 2020 Results 11 ) ) ) ) ) ) ) ) ) ) ) ) ) 4 7 1 (3 74 14 — — — — 20 22 (44 (96 667 341 230 247 (180 (227 (218 (357 (756 (309 1,027 6,028 2,560 1,502 (8,138 (2,175 (4,860 (2,330 13,233 10,903 2019 $ $ $ $ ) ) ) ) ) ) ) ) ) ) ) ) ) 1 84 77 — 51 11 30 (79 (32 (21 (15 591 293 283 151 106 119 457 999 (206 (386 (401 (800 (402 (178 (In millions) 1,504 5,511 3,000 2,241 (3,593 (3,612 (2,568 15,743 16,742 2020 Three Months Ended March 31, March Months Ended Three $ $ $ $ PayPal Holdings, Inc. Holdings, PayPal Unaudited Condensed Consolidated Statements of Cash Flows of Cash Statements Consolidated Condensed Unaudited Transaction and credit losses and Transaction Depreciation and amortization Stock-based compensation Deferred income taxes Unrealized losses (gains) on strategic investments Unrealized losses (gains) 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: Net income Adjustments: Purchases of property and equipment Proceeds from sales of property and equipment Changes in principal loans receivable, net Purchases of investments Maturities and sales of investments Acquisitions, net of cash and restricted cash acquired Funds receivable Proceeds from issuance of common stock Purchases of treasury stock Tax withholdings related to net share settlements of equity awards withholdings related to net share settlements of Tax Borrowings under financing arrangements Funds payable and amounts due to customers Other financing activities Cash paid for interest Cash paid for income taxes, net Cash flows from operating activities: Cash flows from operating Net cash provided by operating activities Cash flows from investing activities: Net cash used in investing activities Cash flows from financing activities: Net cash provided by financing activities of exchange rate changes on cash, cash equivalents, and restricted cash Effect Net change in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at beginning of period Cash, cash equivalents, and restricted cash at end of period Supplemental cash flow disclosures:

Q1 2020 Results 12 % % % % % % % % % % % % % )% )% )% )% )% 8 6 (2 (5 — 12 12 53 17 17 47 (2 (3 12 17 90 10 (19 397 4,128 2,187 1,941 4,128 3,731 2019 2019 31, March 31, March $ $ $ $ % % % % % % % % % % % % % % % % % 4 5 7 3 )% 12 12 53 18 18 47 4 4 8 12 17 90 10 (21 427 4,305 2,008 2,297 4,305 3,878 2019 2019 June 30, June 30, $ $ $ $ % % % % % % % % % % % % % % % % % 2 1 2 )% 19 19 19 53 19 20 47 2 2 30, 30, (1 19 18 90 24 10 423 4,378 2,051 2,327 4,378 3,955 2019 2019 September $ $ September $ $ Three Months Ended Three Three Months Ended Three % % % % % % % % % % % % % % % % % % 1 9 13 17 18 12 19 53 15 16 17 47 13 17 15 18 91 14 31, 31, 426 (In millions, except percentages) (In millions, except percentages) 4,961 2,355 2,606 4,961 4,535 2019 2019 December December $ $ $ $ % % % % % % % % % % % % )% )% )% )% )% )% 2 9 (7 (7 (5 (7 (5 (9 12 13 91 12 13 13 53 11 14 47 403 4,618 4,215 2,149 4,618 2,469 2020 2020 31, March 31, March $ $ $ $ PayPal Holdings, Inc. Holdings, PayPal Unaudited SummaryUnaudited Revenues Net of Consolidated : Net revenues transaction Transaction fees charged to merchants and consumers on a transaction basis primarily based on the volume or of activity, ("TPV"), Payment Total Volume completed on our Payments Platform, including our PayPal, PayPal Credit, Braintree, (i.e., Venmo, transactions Xoom, cross-border enable and we when conversion, iZettle currency perform we where transactions on fees additional earn We services. and products PayPal their from customers our for funds of transfer instant the facilitate to countries), different in are consumer and merchant the where transactions and other miscellaneous fees. account to their debit card or bank account, Venmo or Other value added services: Net revenues derived primarily from revenue earned through partnerships, referral fees, subscription fees, gateway fees, and other account services customer we PayPal provide certain to on our merchants earned and interest also customers. and We earn advances, revenues from and interest loans and certain fees in earned interest primarily on participation our of PayPal sale credit on gain receivable, loans of portfolio balances. • • Current quarter vs prior quarter Current quarter vs prior year quarter Current Current quarter vs prior quarter Current quarter vs prior year quarter Current of total Percentage quarter vs prior quarter Current quarter vs prior year quarter Current of total Percentage Current quarter vs prior quarter Current quarter vs prior year quarter Current year quarter quarter vs prior (FXN) Current Current quarter vs prior quarter Current quarter vs prior year quarter Current of total Percentage quarter vs prior quarter Current quarter vs prior year quarter Current year quarter quarter vs prior (FXN) Current of total Percentage Net Revenues by Type Net Revenues by Other value added services Other net revenues Total Transaction revenues Transaction International net revenues net revenues Total U.S. net revenues Net Revenues by Geography We earn revenue from the following types of transactions: types of transactions: revenue from the following earn We

Q1 2020 Results 13 % % % % % % % % % % )% )% 9 3 3 (1 (1 25 22 17 28 277 0.96 0.21 54.2 37.9 2,838 2019 161,492 31, March $ % % % % % % % % % % % % 7 9 3 5 3 26 24 17 28 286 0.94 0.18 54.8 39.0 2,973 172,359 2019 June 30, $ % % % % % % % % % % % % 4 9 3 4 2 27 25 16 25 30, 295 0.95 0.19 53.4 39.8 3,090 178,670 2019 September $ Three Months Ended Three % % % % % % % % % % % % 3 2 22 12 22 14 10 12 21 31, (In millions, except percentages) (In millions, 305 0.96 0.19 53.8 40.6 3,461 199,404 2019 December $ % % % % % % % % % )% )% )% 4 7 (4 (6 (3 19 18 17 15 325 0.91 0.31 49.5 39.4 3,261 2020 190,567 PayPal Holdings, Inc. Holdings, PayPal 31, March $ Unaudited Supplemental Operating Data Operating Supplemental Unaudited (3) (2) (6) (5) (4) (7) (1) 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. is total revenue less transaction expense margin Transaction Transaction expense rate is calculated by dividing transaction expense by TPV. TPV. expense by dividing transaction expense rate is calculated by Transaction TPV. and credit loss by by dividing transaction and credit loss rate is calculated Transaction Number of payment transactions per active account reflects the total number of payment transactions within the previous 12-month period, divided by active by divided period, 12-month previous the within transactions payment of number total the reflects account active per transactions payment of Number Transaction Payment Volume (TPV) is Transaction Payment the Volume value of payments, net of payment reversals, successfully completed on our Payments Platform or enabled by through our Honey Platform, not including gateway-exclusive transactions, within the past 12 months. through our Honey Platform, not including gateway-exclusive accounts at the end of the period. (6) (7) (4) (5) (2) (3) Amounts in the table are rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts rounded the using recalculate not may amounts certain result, a As noted. otherwise as except million, nearest the to rounded are table the in Amounts provided. (1) by PayPal via a partner payment solution, not including gateway-exclusive transactions. by PayPal via a partner payment solution, not including PayPal via a partner payment solution, not including gateway-exclusive transactions. PayPal via a partner payment solution, not including (FXN) Current quarter vs prior year quarter (FXN) Current Current quarter vs prior quarter Current quarter vs prior year quarter Current Current quarter vs prior year quarter quarter Current quarter vs prior year quarter Current Current quarter vs prior quarter quarter Current vs prior quarter quarter Current vs prior year quarter quarter Current vs prior quarter quarter Current Transaction Expense Rate Transaction Active accounts Number of payment transactions Number Volume Payment Total and Credit Loss Rate Transaction Margin Transaction Payment transactions per active account per Payment transactions

Q1 2020 Results 14 s cash These are The company believes that results to investors, the company believes results to investors, the s local currency results with the prior period’s . The company excludes these amounts from its s FX-neutral results by the prior period’s results, s FX-neutral results by the prior period’s , buildings, and equipment, which can then be used to, s operations and evaluating growth in net revenues and This consists of expenses for equity awards under our equity This consists measures. , the company’s management uses financial measures that do not include , the company’s PayPal Holdings, Inc. Holdings, PayPal Measures of Financial Performance of Financial Measures We exclude such gains and losses in full because we lack control over the operations We . We record gains and losses on our strategic investments related to our interest in companies related to our interest in record gains and losses on our strategic investments We . Non-GAAP These consist of expenses for employee severance and other exit and disposal costs. The company excludes significant of expenses for employee severance and other exit and disposal costs. These consist operating results. core not indicative of the company’s that are Certain other significant gains, losses, benefits, or charges incentive plans. We exclude stock-based compensation expense from our non-GAAP measures primarily because they are non-cash exclude stock-based compensation expense from our non-GAAP We incentive plans. of exercises and vesting of related employer payroll taxes are dependent on our stock price and the timing and size The expenses. limited to no control, and as such management does not believe it correlates to the equity awards, over which management has operation of our business. the acquisition or from intangible assets, impairment of goodwill, and transaction expenses Amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions of acquired amortization or impairment incur disposal of a business. We transactional expenses from the acquisition or disposal of a business and therefore exclude and may incur significant gains or losses or they are reflective of our exclude these items because management does not believe We measures. these amounts from our non-GAAP ongoing operating results. Restructuring. because management does not believe they are reflective of ongoing operating results. primarily restructuring charges during a period that are the result of isolated events or transactions which have not significant gains, losses, benefits, or charges occurred frequently in the past and are not expected to occur regularly in the future. management does not believe they are indicative of our current or ongoing operating results. results because non-GAAP is made to present stock-based compensation and the other amounts described This adjustment adjustments. effect of non-GAAP Tax net income with the presentation of non-GAAP basis consistent above on an after-tax Stock-based compensation expense and related employer payroll taxes. employer payroll Stock-based compensation expense and related over which we have limited control and visibility. results. of the investee and the related gains and losses are not indicative of our ongoing operating Gains and losses on strategic investments changes in foreign currency exchange rates are not indicative of the company’ assessment of these measures to both operating expenses on an FX-neutral basis provides an additional meaningful and comparable period’ management and investors. FX-neutral results are calculated by translating the current exchange rate. FX-neutral growth rates are calculated by comparing the current period’ excluding the impact from hedging activities. In addition to the non-GAAP measures discussed above, the company also analyzes certain measures, including net revenues and operating measures discussed above, In addition to the non-GAAP between periods. expenses, on an FX-neutral basis to better measure the comparability of operating results The company also uses free cash flow, a non-GAAP measure. Free cash flow represents operating cash flows less purchases of property and measure. Free cash flow represents operating cash flows less a non-GAAP The company also uses free cash flow, The company considers free cash flow to be a liquidity measure that provides useful information to management and investors equipment. about the amount of cash generated by the business after the purchases of property among other things, invest in the company’s business, make strategic acquisitions and investments, and repurchase stock. A limitation of the A business, make strategic acquisitions and investments, and repurchase stock. among other things, invest in the company’s the total increase or decrease in the company’ utility of free cash flow as a measure of financial performance is that it does not represent stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible payroll taxes on stock-based compensation, amortization or impairment of acquired stock-based compensation expense, employer that are not indicative of the losses, benefits, or charges certain other gains, charges, assets, impairment of goodwill, restructuring-related measures, the with the foregoing. In addition to the corresponding GAAP core operating results, and the income taxes associated company’s measures in reviewing the financial results of the company. management also uses the foregoing non-GAAP company’s operating earnings per share, non-GAAP diluted net income, non-GAAP from non-GAAP The company excludes the following items tax rate: effective and non-GAAP operating margin, income, non-GAAP that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting. financial provides consistency in the company’s measures that the inclusion of non-GAAP further below For its internal budgeting process, and as discussed balance for the period. To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting with generally presented in accordance financial statements condensed consolidated the company’s supplement To measures These non-GAAP of financial performance. certain components measures of the company uses non-GAAP or GAAP, principles, non- operating margin, non-GAAP operating income, per share, non-GAAP diluted earnings non-GAAP net income, include non-GAAP adjusted free cash flow. and flow, tax rate, free cash effective GAAP and may be with GAAP in accordance to, measures prepared with, or an alternative are not in accordance measures These non-GAAP on any comprehensive set measures are not based non-GAAP used by other companies. In addition, these measures from non-GAAP different with the do not reflect all of the amounts associated measures have limitations in that they principles. Non-GAAP of accounting rules or should only be used to evaluate the company’s These measures in accordance with GAAP. results of operations as determined company’s conjunction with the corresponding GAAP results of operations in Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release can be found in the measures included measure of all non-GAAP directly comparable GAAP Reconciliation to the most press release. tables included in this financial performance and its current overall understanding of the company’s measures are provided to enhance investors’ These non-GAAP information to both management and measures provide useful the company believes the non-GAAP Specifically, prospects for the future. its core operating results and case may be, that may not be indicative of certain expenses, gains and losses, as the investors by excluding reported certain non-GAAP because the company has historically business outlook. In addition,

Q1 2020 Results 15 31, 2018. 31, 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 December 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 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 • The three months ended for the periods presented, as applicable, 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 20 24 23 23 23 22 21 21 22 $ $ $ $ $ $ $ $ $ Non-GAAP operating income operating Non-GAAP 908 1,173 1,026 998 934 913 787 820 829 adjustments 295 248 297 315 416 293 329 374 510 Total non-GAAP operating income operating non-GAAP Total Acquisition related transaction expense transaction related Acquisition — — 17 7 — — — 3 20 ) ) Other — — 28 12 (5 (2 — 23 11 (1) Restructuring 25 — — — 78 — — — 29 Amortization of acquired intangible assets intangible acquired of Amortization 29 25 33 59 57 51 52 51 114 employer payroll taxes payroll employer 241 223 219 237 286 244 277 297 336 Stock-based compensation expense and related and expense compensation Stock-based $ $ $ $ $ $ $ $ $ GAAP operating income operating GAAP 534 572 490 598 518 705 697 799 398 (unaudited) (In millions, except percentages) except millions, (In 2020 2019 2019 2019 2018 2018 2019 2018 2018 31, March 30, September 31, December 30, 30, June 30, September 31, December 31, March 30, June 31, March Three Months Ended Months Three Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin Operating Non-GAAP to Margin Operating GAAP of Reconciliation PayPal Holdings, Inc. Holdings, PayPal Q1 2020 Results 15 15 Results 2020 Q1

Q1 2020 Results 16 June 30, 2018 and March 31, 2018 include tax expense related to the the to related expense tax include 2018 31, March and 2018 30, June • Tax Act. Tax September 30, 2018 includes tax expense of $3 million related to the the to related million $3 of expense tax includes 2018 30, September • Tax Act and $11 million related to intra-group transfer of intellectual property. intellectual of transfer intra-group to related million $11 and Act Tax December 31, 2018 includes tax benefit of $15 million related to the the to related million $15 of benefit tax includes 2018 31, December • Tax Cuts and Jobs Act ("Tax Act") and tax expense of $9 million related to intra-group transfer of intellectual property. intellectual of transfer intra-group to related million $9 of expense tax and Act") ("Tax Act Jobs and Cuts Tax March 31, 2020 and December 31, 2019 include tax expense related to intra-group transfer of intellectual property intellectual of transfer intra-group to related expense tax include 2019 31, December and 2020 31, March • . The three months ended for the periods presented, as applicable, include the following: following: the include applicable, as presented, periods the for ended months three The (2) (2) Reflects the impact of reclassification as described in our Form 8-K filed with the SEC on April 9, 2020. 9, April on SEC the with filed 8-K Form our in described as reclassification of impact the Reflects (1) (1) % % % % % % % % % Non-GAAP effective tax rate tax effective Non-GAAP 12 17 14 17 18 17 16 18 18 )% )% % % % % )% % % Tax effect of non-GAAP adjustments to net income net to adjustments non-GAAP of effect Tax (56 (24 9 4 11 2 (2 4 11 % % % % % % % % % GAAP effective tax rate tax effective GAAP 68 41 5 13 7 15 18 14 7 Shares used in non-GAAP diluted share calculation share diluted non-GAAP in used Shares 1,217 1,202 1,199 1,196 1,188 1,187 1,188 1,187 1,185 Shares used in GAAP diluted share calculation share diluted GAAP in used Shares 1,217 1,202 1,199 1,196 1,188 1,187 1,188 1,187 1,185 $ $ $ $ $ $ $ $ $ Non-GAAP 0.66 0.83 0.76 0.71 0.66 0.65 0.58 0.56 0.57 $ $ $ $ $ $ $ $ $ GAAP 0.07 0.43 0.39 0.69 0.56 0.49 0.36 0.44 0.42 Diluted net income per share: per income net Diluted $ $ $ $ $ $ $ $ $ Non-GAAP net income net Non-GAAP 786 988 900 848 786 783 695 676 692 ) ) ) ) $ ) ) ) ) ) Tax effect of non-GAAP adjustments non-GAAP of effect Tax (191 (85 (119 (50 (117 (54 (52 (99 (117 (1) ) Other 3 32 14 (6 — — — 230 259 (2) (Gains) losses on strategic investments strategic on losses (Gains) ) ) ) ) ) — (31 — (56 (180 (218 228 (38 124 (1) table above) table 295 248 297 315 416 293 329 374 510 Non-GAAP operating income adjustments (see adjustments income operating Non-GAAP Non-GAAP adjustments to net income: net to adjustments Non-GAAP GAAP net income net GAAP 511 526 436 584 667 823 462 507 84 GAAP income tax expense tax income GAAP 37 83 97 102 50 120 22 347 179 $ $ $ $ $ $ $ $ $ GAAP income before income taxes income before income GAAP 548 609 533 686 717 943 484 854 263 (unaudited) (In millions, except per share data and percentages) and data share per except millions, (In 2019 2019 2020 2019 2018 2018 2019 2018 2018 30, September 31, December 31, March 30, 30, June 30, September 31, December 31, March 30, 30, June 31, March 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 Q1 2020 Results 16 16 Results 2020 Q1

Q1 2020 Results 17 $ $ $ $ $ $ $ $ $ Adjusted free cash flow cash free Adjusted 733 737 772 910 809 1,035 923 1,090 1,298 ) portfolio on cash flow from operating activities operating from flow cash on portfolio 1,260 907 (3,675 — — — — — — related to our U.S. consumer credit receivables credit consumer U.S. our to related Impact of held for sale accounting presentation accounting sale for held of Impact ) $ ) $ $ $ $ $ $ $ $ Free cash flow cash Free (527 (170 4,447 910 809 1,035 923 1,090 1,298 ) ) ) ) ) ) ) ) ) Less: Purchases of property and equipment and property of Purchases Less: (178 (198 (223 (224 (218 (139 (173 (174 (206 ) $ $ $ $ $ $ $ $ $ Net cash provided by operating activities operating by provided cash Net (349 28 4,670 1,134 1,027 1,174 1,096 1,264 1,504 (In millions/unaudited) (In 2020 2019 2019 2019 2018 2018 2019 2018 2018 31, March 30, September 31, December 30, 30, June 30, September 31, December 31, March 30, 30, June 31, March Three Months Ended Months Three Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow Cash Free Adjusted and Flow Cash Free to Flow Cash Operating of Reconciliation PayPal Holdings, Inc. Holdings, PayPal Q1 2020 Results 17 17 Results 2020 Q1