The allowance for doubtful accounts with respect to the Company’s loans receivable amounts to $4,431 million and $3,179 million as of June 30, 2026 and December 31, 2025, respectively, which includes $52 million and $36 million related to unused agreed loan commitment on credit cards portfolio presented in Other liabilities of the interim condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, the Company is exposed to off-balance sheet unused agreed loan commitments on its credit card portfolio which expose the Company to credit risks of $14,047 million and $9,001 million, respectively. Related to these off-balance sheet commitments, the Company recognized in Provision for doubtful accounts losses of $14 million and $7 million for the six and three-month periods ended June 30, 2026, respectively, and a gain of $12 million and a loss of $1 million for the six and three-month periods ended June 30, 2025, respectively.

From time to time, the Company sells loans receivable related to its lending solution. Certain of these arrangements, as described below, are structured as revolving facilities, under which cumulative loan sales over the term of the agreement may exceed the contractual amount, provided that the outstanding balance does not exceed the contractual limit.

In this regard, during 2024, the Company signed a contract with a third party to sell an amount up to $100 million of its loans receivable, as part of its funding strategy. These loans were originated by its Mexican subsidiary and provided to its local users. This transaction is accounted for as a true sale and the Company has a continuing involvement related to a servicing fee charged to the purchaser for collection services and regarding a beneficial interest retained by the Company over the transferred assets. Such involvements did not preclude the fact that this operation qualified as a true sale because the purchaser had full control over the transferred assets. During the six and three-month periods ended June 30, 2025, the Company sold $52 million and $21 million of loans receivable, respectively, and recorded a gain of $1 million related to the aforementioned contract. During 2025, the Company completed the sale of the total aforementioned amount. During the second quarter of 2026, the Company signed a new revolving contract with a third party to sell an additional amount of up to $150 million of its loans receivable. During the three-month period ended June 30, 2026, the Company sold $53 million of loans receivable and recorded a gain of $2 million related to the aforementioned contract.

Additionally, during the fourth quarter of 2025, the Company signed a revolving contract to sell loans receivable in Argentina with a local financial institution for an amount up to $100 million, as part of its funding strategy. This transaction is accounted for as a true sale and the Company does not retain any continuing involvement. During the six and three-month periods ended June 30, 2026, the Company sold $121 million and $66 million of loans receivable, respectively, and recorded gains of $14 million and $8 million, respectively.


	June 30, 2026
	Merchant		Consumer		Credit cards		Asset-backed		Total
	(In millions)
Balance at beginning of year	$	747	$	1,271	$	1,107	$	18	$	3,143
Net charged to Net Income	554		1,135		758		13		2,460
Currency translation adjustments	35		52		58		1		146
Write-offs (1)	(327)		(553)		(483)		(7)		(1,370)
Balance at end of period	$	1,009	$	1,905	$	1,440	$	25	$	4,379


	June 30, 2025
	Merchant		Consumer		Credit cards		Asset-backed		Total
	(In millions)
Balance at beginning of year	$	417	$	696	$	557	$	8	$	1,678
Net charged to Net Income	318		491		471		7		1,287
Currency translation adjustments	53		75		85		1		214
Write-offs (1)	(190)		(314)		(210)		(2)		(716)
Balance at end of period	$	598	$	948	$	903	$	14	$	2,463

The Company closely monitors credit quality for all loans receivable on a recurring basis to assess and manage its exposure to credit risk. To assess merchants and consumers seeking a loan under the lending solution, the Company uses, among other indicators, risk models internally developed, as a credit quality indicator to help predict the merchant’s and consumer’s ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant’s and consumer’s ability to repay the credit, including external and internal indicators. Internal indicators consider user behavior related to credit/payment history, and with lower weight in the risk models, the Company uses number of transactions in the Company’s ecosystem and merchant’s annual sales volume, among other indicators. In addition, the Company considers external bureau information to enhance the model and the decision making process.


	June 30, 2026		December 31, 2025
	(In millions)
1-14 days past due	$	435	$	247
15-30 days past due	287		278
31-60 days past due	415		343
61-90 days past due	441		329
91-120 days past due	456		333
121-150 days past due	403		286
151-180 days past due	398		256
181-210 days past due	336		228
211-240 days past due	372		206
241-270 days past due	317		206
271-300 days past due	299		187
301-330 days past due	256		210
331-360 days past due	223		186
Total past due	4,638		3,295
To become due	11,737		9,213
Total	$	16,375	$	12,508