As of March 31, 2026 and December 31, 2025, loans and interest receivable, held for sale was $1.8 billion and $1.7 billion, respectively, and include both loans reclassified to held for sale and loans originated as held for sale. During the three months ended March 31, 2026, we derecognized loans with an unpaid balance of $7.5 billion and had net proceeds of $7.4 billion from loans and interest receivable sold. During the three months ended March 31, 2025, we derecognized loans with both an unpaid balance and net proceeds of $5.3 billion from loans and interest receivable sold.

We offer revolving and installment credit products as a funding option for consumers in certain checkout transactions on our payments platform. Our revolving credit product consists of PayPal Credit in the United Kingdom (“U.K.”), which is made available to consumers as a funding source in their PayPal wallet once they are approved for credit. Additionally, we offer installment credit products at the time of checkout in various markets, including the U.S., several markets across Europe, Australia, and Japan. We offer non interest-bearing installment credit products in these markets as well as interest-bearing installment credit products in the U.S. and Germany, among other markets. We purchase receivables related to interest-bearing installment loans extended to U.S. consumers by an independent chartered financial institution (“partner institution”) and are responsible for the servicing functions related to that portfolio. During the three months ended March 31, 2026 and 2025, we purchased approximately $369 million and $277 million in consumer receivables, respectively. As of March 31, 2026 and December 31, 2025, the outstanding balance of consumer receivables, which consisted of revolving and installment loans and interest receivable, was $5.4 billion and $5.5 billion, respectively, net of the participation interest sold to the partner institution of $33 million for both March 31, 2026 and December 31, 2025.

The following tables present the delinquency status and gross charge-offs of revolving and installment loans and interest receivable by year of origination, as applicable. The amounts are based on the number of days past the billing date for revolving loans or contractual repayment date for installment loans. The “current” category represents balances that are within 29 days of the billing date or contractual repayment date, as applicable.


March 31, 2026
(In millions, except percentages)

	Revolving Loans Amortized Cost Basis		Installment Loans Amortized Cost Basis
			2026		2025		2024		2023		2022		Total		Percent
Consumer loans and interest receivable:
Current	$	2,692	$	1,078	$	1,091	$	280	$	74	$	—	$	5,215	96.3%
30 - 59 Days	28		15		19		4		1		—		67		1.2%
60 - 89 Days	21		—		21		3		1		—		46		0.9%
90 - 179 Days	40		—		40		4		2		—		86		1.6%
Total	$	2,781	$	1,093	$	1,171	$	291	$	78	$	—	$	5,414	100%
Gross charge-offs for the three months ended March 31, 2026	$	35	$	—	$	33	$	3	$	—	$	—	$	71


December 31, 2025
(In millions, except percentages)

	Revolving Loans Amortized Cost Basis		Installment Loans Amortized Cost Basis
			2025		2024		2023		2022		2021		Total		Percent
Consumer loans and interest receivable:
Current	$	2,767	$	2,043	$	360	$	114	$	—	$	—	$	5,284	96.4%
30 - 59 Days	29		34		5		2		—		—		70		1.3%
60 - 89 Days	19		22		4		2		—		—		47		0.9%
90 - 179 Days	39		31		6		2		—		—		78		1.4%
Total	$	2,854	$	2,130	$	375	$	120	$	—	$	—	$	5,479	100%
Gross charge-offs for the year ended December 31, 2025	$	136	$	36	$	107	$	20	$	1	$	—	$	300


	March 31, 2026						March 31, 2025
	Consumer Loans Receivable		Interest Receivable		Total Allowance		Consumer Loans Receivable		Interest Receivable		Total Allowance
	(In millions)
Beginning balance	$	366	$	3	$	369	$	341	$	7	$	348

Provisions	55		3		58		55		3		58
Charge-offs	(68)		(3)		(71)		(71)		(5)		(76)
Recoveries	26		—		26		12		—		12
Other(1)	(6)		—		(6)		10		—		10
Ending balance	$	373	$	3	$	376	$	347	$	5	$	352

The allowance for credit losses at March 31, 2026 for our consumer receivable portfolio remained relatively consistent with the allowance for credit losses at December 31, 2025. In the first quarter of 2026, we updated our expected credit loss model for interest bearing installment loans in the U.S. to reflect current risk characteristics. This change did not have a material impact on our allowance for credit losses in the period.

We offer access to merchant finance products for certain small and medium-sized businesses through our PayPal Working Capital (“PPWC”) product in the U.S., Germany, and U.K., among other markets, and our PayPal Business Loan (“PPBL”) product in the U.S., which we collectively refer to as our merchant finance offerings. We purchase receivables related to credit extended to U.S. merchants by a partner institution and are responsible for the servicing functions related to that portfolio. During the three months ended March 31, 2026 and 2025, we purchased approximately $570 million and $494 million in merchant receivables, respectively. As of March 31, 2026 and December 31, 2025, the total outstanding balance in our pool of merchant loans, advances, and fees receivable was $1.9 billion and $1.8 billion, respectively, net of the participation interest sold to the partner institution of $66 million and $65 million, respectively.

The following tables present the delinquency status and gross charge-offs of merchant loans, advances, and fees receivable by year of origination. The amounts are based on the number of days past the expected or contractual repayment date for amounts outstanding. The “current” category represents balances that are within 29 days of the expected repayment date or contractual repayment date, as applicable.


March 31, 2026
(In millions, except percentages)
	2026		2025		2024		2023		2022		Total		Percent
Merchant loans, advances, and fees receivable:
Current	$	818	$	803	$	26	$	3	$	4	$	1,654	89.4%
30 - 59 Days	10		57		13		1		—		81		4.4%
60 - 89 Days	2		32		8		1		—		43		2.3%
90 - 179 Days	—		50		11		2		—		63		3.4%
180+ Days	—		4		5		1		—		10		0.5%
Total	$	830	$	946	$	63	$	8	$	4	$	1,851	100.0%
Gross charge-offs for the three months ended March 31, 2026	$	—	$	25	$	13	$	2	$	—	$	40


December 31, 2025
(In millions, except percentages)
	2025		2024		2023		2022		2021		Prior		Total		Percent
Merchant loans, advances, and fees receivable:
Current	$	1,558	$	53	$	5	$	3	$	—	$	2	$	1,621	89.8%
30 - 59 Days	63		17		1		1		—		—		82		4.5%
60 - 89 Days	27		10		1		1		—		—		39		2.2%
90 - 179 Days	34		18		2		1		—		—		55		3.0%
180+ Days	2		5		2		—		—		—		9		0.5%
Total	$	1,684	$	103	$	11	$	6	$	—	$	2	$	1,806	100%
Gross charge-offs for the year ended December 31, 2025	$	25	$	87	$	19	$	4	$	—	$	2	$	137


	March 31, 2026						March 31, 2025
	Merchant Loans and Advances		Fees Receivable		Total Allowance		Merchant Loans and Advances		Fees Receivable		Total Allowance
	(In millions)
Beginning balance	$	156	$	14	$	170	$	107	$	6	$	113
Provisions	47		4		51		38		3		41
Charge-offs	(37)		(3)		(40)		(23)		(2)		(25)
Recoveries	4		—		4		6		—		6
Other(1)	(1)		—		(1)		—		—		—
Ending balance	$	169	$	15	$	184	$	128	$	7	$	135