v3.25.2
Loans and Merchant Cash Advances
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans and Merchant Cash Advances Trade and Other Receivables
Trade receivables and unbilled revenues, net of allowance for credit losses, were as follows:
 June 30, 2025December 31, 2024
(in US $ millions)
Unbilled revenues, net175 175 
Trade receivables, net69 77 
Indirect taxes receivable41 49 
Accrued interest39 19 
Other receivables26 22 
 350 342 
Unbilled revenues represent amounts not yet billed related to partner referral fees, subscription fees for Plus merchants, shipping charges and transaction fees as of the condensed consolidated balance sheet date.
The allowance for credit losses reflects the Company's best estimate of probable losses inherent in the unbilled revenues and trade receivables accounts. The Company determined the provision based on known troubled accounts, historical experience, supportable forecasts of collectibility and other currently available evidence.
Activity in the allowance for credit losses was as follows for the three and six months ended:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in US $ millions)
Balance, beginning of the period16 

16 16 

13 
Provision for credit losses related to uncollectible receivables7 

2 14 

8 
Write-offs(7)

(3)(14)

(6)
Balance, end of the period16 

15 16 

15 
Loans and Merchant Cash Advances    
June 30, 2025December 31, 2024
(in US $ millions)
Loans receivable, gross(1)
1,444 1,131 
Allowance for credit losses related to uncollectible loans receivable(138)(110)
Merchant cash advances receivable, gross322 234 
Allowance for credit losses related to uncollectible merchant cash advances receivable(31)(31)
Loans and merchant cash advances, net1,597 1,224 
(1) Included in the loans receivable gross balance as of June 30, 2025 is $21 million of interest receivable (December 31, 2024 - $15 million).
Certain loans and merchant cash advances are facilitated by the Company and originated by a bank partner, from whom the Company then purchases the loans and merchant cash advances obtaining all rights, title and interest or discount. In the three and six months ended June 30, 2025, the Company purchased $1.0 billion and $1.8 billion, respectively, of loans and merchant cash advances to Shopify merchants (June 30, 2024 - $705 million and $1.3 billion). For some loans, the Company sells its full rights, title and interest to third-party investors. We account for the asset transfer as a sale and derecognize the full amount the Company paid to its bank partner to originate the loan and record a gain on sale of the loans sold to the third-party investor as revenue upon transfer of title. In the three and six months ended
June 30, 2025, the Company did not sell loans to third-party investors (June 30, 2024 - $62 million and $116 million).
In the three and six months ended June 30, 2025, the Company recognized revenue of $62 million and $119 million, respectively, related to interest and fees earned on the Company's lending services, which do not represent revenues recognized in the scope of ASC 606, Revenue from Contracts with Customers (June 30, 2024 - $43 million and $82 million).
Loans
The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible loans receivable for the three and six months ended June 30, 2025 and 2024:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in US $ millions)
Allowance, beginning of the period129 72 110 60 
Provision for credit losses related to uncollectible loans receivable32 24 72 46 
Loans receivable charged off, net of recoveries(23)(14)(44)(24)
Allowance, end of the period138 82 138 82 
The following table presents the delinquency status of the gross amount of merchant loans by year of origination. The delinquency status is determined based on the number of days past the contractual or expected repayment date for which the Company anticipates to receive the amounts outstanding. The "current" category represents balances that are anticipated to be repaid within 29 days of the contractual repayment dates, or are anticipated to be repaid within 29 days of the expected repayment date.
June 30, 2025
Year of origination
20252024TotalPercent
(in US $ millions)
Current1,139 196 1,335 92.5 %
30-59 Days3 4 7 0.5 %
60-89 Days2 4 6 0.4 %
90-179 Days6 13 19 1.3 %
180+ Days20 57 77 5.3 %
Total1,170 274 1,444 100.0 %
December 31, 2024
Year of origination
20242023TotalPercent
(in US $ millions)
Current1,051 8 1,059 93.7 %
30-59 Days5 1 6 0.5 %
60-89 Days4 2 6 0.5 %
90-179 Days7 3 10 0.9 %
180+ Days34 16 50 4.4 %
Total1,101 30 1,131 100.0 %
The Company maintains an internal monitoring list related to its outstanding loans. A merchant's ability and willingness to repay the financing receivables outstanding under the program is analyzed for a
variety of factors that include, but are not limited to current or expected age of the financing, merchant subscription or financing status, merchant gross merchandise volume trends and other changes to merchant credit profiles.
Merchant Cash Advances
The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible merchant cash advances receivable for the three and six months ended June 30, 2025 and 2024:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in US $ millions)
Allowance, beginning of the period33 32 31 36 
Provision for credit losses related to uncollectible merchant cash advances receivable10 4 16 7 
Merchant cash advances receivable charged off, net of recoveries(12)(5)(16)(12)
Allowance, end of the period31 31 31 31