The number of active accounts increased by 2% to 434 million, indicating continued user base expansion. This growth contributes to increases in payment transactions, TPV, and net revenues.

The company strategy includes accelerating growth in the branded checkout business by improving user experience and enhancing rewards. A critical element of the overall growth strategy involves driving an increase in monthly active accounts, which is expected to contribute to growth in payment transactions, TPV, and net revenues.

The company intends to expand its value proposition for consumers and merchants to drive daily use by providing simple, secure, and flexible ways to manage and move money across different markets, merchants, and platforms.

Management initiated a global workforce reduction intended to streamline operations, focus resources on core strategic priorities, and improve the cost structure. The estimated reduction in annualized employee-related costs associated with the impacted workforce is approximately $575 million.

The company strives to continually improve technology infrastructure and payments platform to enhance the customer experience and to increase efficiency, scalability, and security.

The company's enterprise risk and compliance management program is designed to help keep customer information secure and ensure legitimate transactions around the world, while identifying and minimizing illegal, high-risk, or fraudulent transactions.

The company acknowledges the ongoing threat of cyberattacks and security vulnerabilities that could lead to data breaches, financial losses, and reputational damage. This is a persistent and evolving risk.

The company faces extensive and complex regulations related to payments, data protection, and anti-money laundering, and failure to comply could result in significant penalties and restrictions.

The company relies on various third parties, including payment processors and cloud providers, and disruptions or failures in these relationships could negatively impact operations.

The company acknowledges facing substantial and increasingly intense competition worldwide in the global payments industry, requiring continuous innovation and adaptation.

The company differentiates itself through broad acceptance, trusted brands, and the ability to simplify and personalize shopping experiences. These factors are crucial for maintaining market share.

The company is subject to payment card network rules, and increases in fees or changes in rules could negatively affect profitability and competitive positioning.

Transaction expense increased by 9%, but the transaction expense rate decreased slightly due to changes in product and regional mix. This indicates some efficiency gains in processing payments.

Customer support and operations expenses decreased by 8% due to a headcount reduction, indicating improved operational efficiency through workforce management.

The company is actively engaged in restructuring efforts to streamline operations and improve cost structure, as evidenced by workforce reductions and facility consolidations.

Technology and development expenses remained consistent in 2024 compared to 2023 due primarily to a decline in employee-related costs associated with headcount reduction offset by an increase in costs related to contractors and consultants and software maintenance costs.

The company is focused on investing in state-of-the-art technology, architecture, and processes to deliver high-quality products and services to customers more efficiently and effectively.

The company has a comprehensive cybersecurity program designed to protect technology infrastructure and payments platform against cybersecurity threats, which includes regularly testing systems to identify and address potential vulnerabilities.

The company continues to repurchase shares, indicating a commitment to returning capital to shareholders. A new repurchase program was authorized in February 2025.

The company continues to make strategic investments in non-marketable equity securities, which are primarily investments in privately held companies. These investments are subject to a variety of market-related risks that could substantially reduce or increase the carrying value of the portfolio.

The company issues debt for general corporate purposes, including funding the repayment or redemption of outstanding debt, share repurchases, ongoing operations, capital expenditures, and possible acquisitions of businesses, assets, or strategic investments.

PayPal is committed to creating a more inclusive digital economy for the customers and communities it serves across the world. Management of priority Corporate Sustainability & Impact (“CS&I”) risks and opportunities in respect of the business is organized across employees and culture, social impact, responsible business practices, and environmental sustainability.

The company considers the management of global talent (human capital) to be essential to the ongoing success of the business. It is also committed to equal pay for equal work and promoting enterprise-wide inclusive learning opportunities.

In October 2024, the company moved to hybrid as the primary way of working at PayPal. As of December 31, 2024, approximately half of the employees worked a hybrid schedule while the remaining were fully virtual.

Adverse global and regional economic conditions could harm the business. Adverse global and regional economic conditions such as turmoil affecting the banking system or financial markets could have a material adverse impact on the demand for products and services.

The global payments industry is increasingly subject to regulatory scrutiny and oversight. The company is subject to scrutiny by various government agencies regarding antitrust and competition laws and regulations in the U.S. and internationally.

The company recognizes that climate-related risks may impact the business. For example, California, where our headquarters are located, has historically experienced, and is projected to continue to experience, extreme weather and natural disaster events more frequently.