# PayPal: Digital payments transformation

Source: https://www.bankingnewsai.com/fintech/paypal/digital-payments-transformation
Last updated: Oct 19, 2026

*Part of the [PayPal AI strategy profile](https://www.bankingnewsai.com/fintech/paypal).*

## What is PayPal's role in the digital payments transformation?

PayPal runs a two-sided digital wallet and processing network whose growth has moved from the online checkout button toward Venmo, in-store payments, buy now, pay later, cross-border wallets and stablecoins. It processed $1.79 trillion of total payment volume in 2025, up 7%, across 25.4 billion payment transactions, down 4%, with 439 million active accounts in approximately 200 markets; 37% of TPV came from outside the U.S. and 12% was cross-border. In the second quarter of 2026 TPV rose 10% to $486.4 billion and payment transactions 8% to 6.8 billion. Online branded checkout grew 2% on a currency-neutral basis that quarter, while Pay with Venmo grew 44% and buy now, pay later 26%, per PYMNTS' report of the call; BNPL passed $40 billion of TPV in 2025. Across borders, PayPal World, announced July 23, 2025, links PayPal and Venmo with UPI, Tenpay Global and Mercado Pago; Venmo reached 90 countries in March 2026; and the PYUSD stablecoin became available in 70 markets on March 17, 2026. AI sits in risk control: the transaction loss rate held at 0.07% of TPV in 2025. ([PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm), [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000080/pypl2q-26earningsrelease.htm), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/), [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/), [PayPal](https://newsroom.paypal-corp.com/2025-07-23-Introducing-PayPal-World-a-global-platform-connecting-the-worlds-largest-payment-systems-and-digital-wallets,-starting-with-interoperability-to-PayPal-and-Venmo), [American Banker](https://www.americanbanker.com/payments/news/paypal-takes-venmo-global), [PayPal](https://newsroom.paypal-corp.com/2026-03-17-PAYPAL-BRINGS-PAYPAL-USD-TO-USERS-ACROSS-70-MARKETS))

## How much does PayPal process, and how fast is it growing?

From PayPal's 10-K and its quarterly earnings releases (8-K Exhibit 99.1), with call figures where the filings are silent. Active accounts (12-month, 439 million) and monthly active accounts are different measures.

| Metric | Value | Period | Sources |
| --- | --- | --- | --- |
| Total payment volume (TPV) | $1.79 trillion in 2025, up 7%; $1.68 trillion in 2024 | 2024–2025 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |
| Payment transactions | 25.4 billion in 2025, down 4%; 26.3 billion in 2024 | 2024–2025 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |
| Active accounts | 439 million at December 31, 2025, up 1% from 434 million | 2025 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |
| Transactions per active account | 57.7 in 2025; 60.6 in 2024; 58.7 in 2023 | 2023–2025 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |
| Geography | Cross-border TPV 12% of the total in each of 2023, 2024 and 2025; TPV generated outside the U.S. 37% in 2025 and 2024, 36% in 2023 | 2023–2025 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |
| TPV and transactions, Q1 2026 | TPV $464.0 billion, up 11% (8% FXN); payment transactions 6.5 billion, up 7% | Q1 2026 | [U.S. Securities and Exchange Commission (EDGAR)](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000065/pypl1q-26earningsrelease.htm) |
| TPV and transactions, Q2 2026 | TPV $486.4 billion, up 10% (9% FXN); payment transactions 6.8 billion, up 8%; transactions per active account 60.0 | Q2 2026 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000080/pypl2q-26earningsrelease.htm) |
| Monthly active accounts | 231 million (Q4 2025 call); 228 million, up 1% (Q2 2026, per PYMNTS) | 2025–2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/) |
| Transaction take rate | 1.62%, down 6 basis points, attributed in part to faster growth in Venmo and enterprise payments | Q1 2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/) |
| Transaction loss rate | 0.07% of TPV in 2025 and 2024, 0.08% in 2023; 0.07% in Q2 2026 against 0.09% a year earlier | 2023–2026 | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm), [U.S. Securities and Exchange Commission (EDGAR)](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000082/pypl-20260630.htm) |

## Which ways of paying are growing on PayPal's network?

| Shift | What PayPal reports | Date | Sources |
| --- | --- | --- | --- |
| Online branded checkout | Volume up 1% currency-neutral in Q4 2025, 2% in Q1 2026 and 2% in Q2 2026 | 2025–2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/), [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/) |
| Branded experiences, including debit and tap to pay | Up 5% in Q1 2026 and 6% in Q2 2026; debit card and tap-to-pay spend up 60% (Q1) and more than 60% (Q2), from a small base | 2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/) |
| Buy now, pay later | Over $40 billion of TPV in 2025, up more than 20%; up 23% in Q1 2026 and 26% in Q2 2026 | 2025–2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/), [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/) |
| Venmo | TPV up 13% in Q4 2025 with 67 million monthly active accounts; revenue about $1.7 billion in 2025, up about 20%; TPV up 14% in Q1 2026 | 2025–2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/), [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/) |
| Pay with Venmo at merchants | TPV up 32% in Q4 2025, 34% in Q1 2026 and 44% in Q2 2026 | 2025–2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/), [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/) |
| In-app checkout | Mobile app use among online branded checkout users rose from about 50% in January 2023 to more than 60% | February 3, 2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/02/03/paypal-pypl-q4-2025-earnings-call-transcript/) |
| Guest checkout | Fastlane partners include Bold Commerce, BigCommerce, Fiserv and Adyen; BigCommerce reported conversion rising to 70% from 45% in about half a year of testing | September 27, 2024 | [American Banker](https://www.americanbanker.com/payments/news/paypals-solution-for-ai-scalability-partners) |

## Which other rails and wallets does PayPal run or connect to?

| Rail | PayPal's role | Date | Sources |
| --- | --- | --- | --- |
| PayPal World | Platform connecting PayPal and Venmo with NPCI International (UPI), Tenpay Global and Mercado Pago (memorandum of understanding), together nearly two billion users; built to support AI-agent shopping and, over time, stablecoins | July 23, 2025 | [PayPal](https://newsroom.paypal-corp.com/2025-07-23-Introducing-PayPal-World-a-global-platform-connecting-the-worlds-largest-payment-systems-and-digital-wallets,-starting-with-interoperability-to-PayPal-and-Venmo), [American Banker](https://www.americanbanker.com/payments/news/paypal-upgrades-cross-border-ai-powered-payments) |
| Venmo outside the U.S. | Venmo made available in 90 countries, outside the U.S. for the first time, for payments to PayPal users abroad; PayPal said it adds 200 million users to Venmo's addressable market | March 24, 2026 | [American Banker](https://www.americanbanker.com/payments/news/paypal-takes-venmo-global) |
| PayPal and Venmo P2P interoperability | Enabled in the first quarter of 2026, Enrique Lores said on the Q1 call | May 5, 2026 | [The Motley Fool](https://www.fool.com/earnings/call-transcripts/2026/05/05/paypal-pypl-q1-2026-earnings-transcript/) |
| Xoom remittances | Sends money to bank accounts, mobile wallets and cash pick-up points around the world | FY2025 10-K | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |
| PayPal USD (PYUSD) | Launched in the U.S. in 2023, issued by Paxos; available in PayPal accounts in 70 markets from March 17, 2026; added to Polygon in July 2026, when American Banker put its market cap at about $2.8 billion | 2026 | [PayPal](https://newsroom.paypal-corp.com/2026-03-17-PAYPAL-BRINGS-PAYPAL-USD-TO-USERS-ACROSS-70-MARKETS), [American Banker](https://www.americanbanker.com/payments/news/paypal-adds-pyusd-to-polygon) |
| Merchant platform | PayPal Open unifies merchant products; merchants can transact in more than 140 currencies across more than 200 markets, and PayPal says nearly 25% of global e-commerce runs through it (January 2024 internal data) | February 25, 2025 | [PayPal](https://newsroom.paypal-corp.com/2025-02-25-Introducing-PayPal-Open-The-Unified-Payments-and-Growth-Platform-for-Businesses-of-All-Sizes) |
| In-store | PayPal- and Venmo-branded debit and credit cards and a contactless NFC mobile wallet for in-person payments | FY2025 10-K | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm) |

## How does PayPal frame the shift, where does AI come in, and what is not disclosed?

The 10-K ties revenue growth to "the pace of transition from cash and checks to digital forms of payment" and PayPal's share of digital payments, and its strategy aims to let consumers pay "online, in-person and through artificial intelligence ("AI") agents". ([PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm))

The mix is moving away from the core button. On the Q2 2026 call Enrique Lores said the big change is a focus on financial services, which account for close to 20% of transaction margin, and CFO and COO Jamie Miller said the plan assumes branded checkout makes "a more modest contribution", per PYMNTS. ([PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/))

AI's role in the shift is risk control on faster, cross-border money movement. Transaction losses rose 20% to about $1.3 billion in 2025 on fraud incidents while the loss rate stayed at 0.07% of TPV; in Q2 2026 losses fell 16% on lower fraud losses. AI-powered scam alerts cover Friends and Family payments in every PayPal market and on Venmo in the U.S. ([PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm), [U.S. Securities and Exchange Commission (EDGAR)](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000082/pypl-20260630.htm), [PayPal](https://newsroom.paypal-corp.com/2025-7-21-Introducing-AI-Powered-Scam-Alerts-for-Friends-and-Family-Payments))

What is not disclosed: PayPal World and Venmo international volumes, PYUSD payment volumes, in-store TPV in dollars, and any agentic checkout volume. Branded checkout, Venmo and BNPL growth rates come from earnings calls and are not broken out in the 10-K. ([PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm), [PayPal](https://newsroom.paypal-corp.com/2025-07-23-Introducing-PayPal-World-a-global-platform-connecting-the-worlds-largest-payment-systems-and-digital-wallets,-starting-with-interoperability-to-PayPal-and-Venmo), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/))

## What does the PayPal profile record on this topic?

| Date | Move | Detail | Sources |
| --- | --- | --- | --- |
| Jul 28, 2026 | Q2 2026: agentic payments pushed to 2028+, AI used for cost cuts | TPV rose 10% to $486.4 billion and revenue 5% to $8.7 billion. On the call, per PYMNTS, PayPal said agentic payments and digital identity become more significant from 2028, targeted at least $1.5 billion of gross run-rate savings, and said embedding AI in software delivery reduced production times. | [PayPal Holdings, Inc. via SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000080/pypl2q-26earningsrelease.htm), [PYMNTS](https://www.pymnts.com/earnings/2026/paypal-pushes-ai-digital-identity-checkout-grows-2percent/) |
| Apr 29, 2026 | Reorganization creates a Chief AI Transformation officer | PayPal moved to three businesses (Checkout Solutions & PayPal; Consumer Financial Services & Venmo; Payment Services & Crypto) and named Anshu Bhardwaj Chief AI Transformation & Simplification Officer; Michelle Gill, credited with establishing its foundation in AI-driven payment experiences, departed. | [PayPal](https://newsroom.paypal-corp.com/2026-04-29-PayPal-Announces-Strategic-Reorganization-to-Accelerate-Growth) |
| Dec 15, 2025 | PayPal applies for a Utah industrial bank | PayPal filed with the Utah Department of Financial Institutions and the FDIC to form PayPal Bank, a proposed industrial loan company for US small-business lending and interest-bearing savings, with FDIC-insured deposits if approved. | [PayPal](https://newsroom.paypal-corp.com/2025-12-15-PayPal-Submits-Applications-to-Establish-an-Industrial-Bank-to-Expand-Access-to-Financial-Services-for-U-S-Small-Businesses) |
| May 15, 2007 | PayPal gets an EU banking licence in Luxembourg | The CSSF granted PayPal a banking licence for the European Union, effective July 2, 2007, and PayPal moved its European headquarters to Luxembourg; the release notes PayPal Inc was set up in the US in December 1998. | [PayPal](https://newsroom.apac.paypal-corp.com/paypal-stories-archive?item=203) |

## Common questions

### How much payment volume does PayPal process?

PayPal processed $1.79 trillion of total payment volume in 2025, up 7% from $1.68 trillion in 2024, across 25.4 billion payment transactions, per its 2025 Form 10-K. In the second quarter of 2026 TPV rose 10% to $486.4 billion and payment transactions 8% to 6.8 billion.

### How many active accounts does PayPal have?

PayPal had 439 million active accounts, counted over 12 months, at December 31, 2025, up 1% from 434 million, across approximately 200 markets. The figure was 439 million again at the end of Q2 2026. Monthly active accounts, a narrower measure, were 228 million in Q2 2026 according to PYMNTS.

### How fast are Venmo and PayPal's buy now, pay later growing?

Faster than the core checkout button. BNPL passed $40 billion of TPV in 2025, up more than 20%, and grew 26% in Q2 2026. Pay with Venmo grew 44% in Q2 2026, while online branded checkout grew 2% on a currency-neutral basis. Venmo revenue was about $1.7 billion in 2025.

### What is PayPal World?

A platform announced on July 23, 2025 to connect large payment systems and digital wallets, starting with interoperability to PayPal and Venmo. Launch partners are NPCI International (UPI), Tenpay Global and Mercado Pago, representing nearly two billion users together with PayPal and Venmo. PayPal said it is designed for shopping with AI agents and, over time, stablecoins.

### Where is PayPal's PYUSD stablecoin available?

PayPal said on March 17, 2026 that PYUSD, issued by Paxos Trust Company, is available in PayPal accounts in 70 markets, including the U.K., Singapore (business accounts only) and several Latin American countries. In July 2026 PayPal added PYUSD to Polygon, when American Banker put its market capitalization at about $2.8 billion.
## Deeper on PayPal

- [How does PayPal use AI across its payment ecosystem?](https://www.bankingnewsai.com/fintech/paypal/payment-ecosystem-ai)
- [How does PayPal use AI to fight fraud, and what are the results?](https://www.bankingnewsai.com/fintech/paypal/fraud-and-risk-ai)

## Same question, other companies

- [Revolut: digital payments transformation](https://www.bankingnewsai.com/fintech/revolut/digital-payments-transformation)
- [Chime: digital payments transformation](https://www.bankingnewsai.com/fintech/chime/digital-payments-transformation)
- [Affirm: digital payments transformation](https://www.bankingnewsai.com/fintech/affirm/digital-payments-transformation)
- [Klarna: digital payments transformation](https://www.bankingnewsai.com/fintech/klarna/digital-payments-transformation)
- [Block: digital payments transformation](https://www.bankingnewsai.com/fintech/block/digital-payments-transformation)
- [Stripe: digital payments transformation](https://www.bankingnewsai.com/fintech/stripe/digital-payments-transformation)
- [Adyen: digital payments transformation](https://www.bankingnewsai.com/fintech/adyen/digital-payments-transformation)
- [Visa: digital payments transformation](https://www.bankingnewsai.com/fintech/visa/digital-payments-transformation)
- [Mastercard: digital payments transformation](https://www.bankingnewsai.com/fintech/mastercard/digital-payments-transformation)
- [Ramp: digital payments transformation](https://www.bankingnewsai.com/fintech/ramp/digital-payments-transformation)
- [Plaid: digital payments transformation](https://www.bankingnewsai.com/fintech/plaid/digital-payments-transformation)
- [Amex: What is American Express's role in the digital payments transformation?](https://www.bankingnewsai.com/banks/american-express/digital-payments-transformation)


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