PayPal at Jefferies 2025 Global FinTech Conference: Strategic Growth Insights

On Thursday, 04 September 2025, PayPal Holdings Inc. (NASDAQ:PYPL) presented its strategic outlook at the Jefferies 2025 Global FinTech Conference. The company’s CFO, Jamie Miller, highlighted PayPal’s focus on profitable growth, driven by advancements in branded checkout, Venmo, and Braintree. While a temporary service interruption in Germany posed a challenge, PayPal remains optimistic about its long-term growth prospects.

Key Takeaways

• PayPal is shifting towards profitable growth, focusing on branded checkout, Venmo, and Braintree.
• Temporary service interruption in Germany expected to have minimal financial impact.
• Venmo’s TPV growth is at a three-year high, with revenue growth exceeding 20% year-over-year.
• Braintree’s TPV growth expected to accelerate to mid-to-high single digits by year-end.
• PayPal reinvested $500 million in marketing, product development, and engineering.

Financial Results

• Branded Checkout: TPV growth has remained in the mid-single digits, with a target of 8-10% growth by 2027.
• Buy Now, Pay Later (BNPL): Growing at over 20%, with 18% monthly average account growth.
• Venmo: Highest TPV growth in three years, with over 20% revenue growth year-over-year.
• PayPal Debit Card: Added 5 million more cards, enhancing branded checkout transactions by 20-30%.
• Braintree: TPV growth was flat in Q2, but acceleration is expected by year-end.

Operational Updates

• Germany Service Interruption: Impact was minimal, with issues quickly resolved.
• Branded Checkout Upgrade: 60% penetration in the U.S., aiming for 80% globally by 2027.
• PayPal Everywhere: 5 million more debit cards issued; 3 million enrollments in the NFC PayPal wallet in Germany.
• Venmo: Introduced partnerships with Big 10 and Big 12, offering co-branded debit cards.

Future Outlook

• Branded Checkout: Anticipates accelerated growth through 2027.
• Braintree: Expects mid-to-high single-digit growth by year-end and continued transaction margin dollar growth.
• Marketing Strategy: Focused on brand reinvigoration and co-marketing with merchants.

Q&A Highlights

• Germany Service Interruption: Minimal impact on payment volume, with expected transaction losses within guidance.
• Branded Checkout: No significant impact from lifting global de minimis exemption, with improved merchant conversion rates.
• Venmo: Aims to sustain 20% revenue growth in the coming years.

For more detailed insights, readers are encouraged to refer to the full transcript of the conference call.

Full transcript - Jefferies 2025 Global FinTech Conference:

Unidentified speaker, Analyst: Okay. We’re gonna get into it. Very excited to have Jamie Miller, CFO of PayPal, with us here. We’ve got the IR team, Steve, Ryan, and, and Allison as well. Jamie, maybe to to kick things off, we’ll start higher level.

Maybe just start with on how you think things are going at PayPal overall. I mean, there’s still plenty of debate in the market, but you guys have made a lot of progress over the last year and a half or so, especially on TM dollar growth. Just how do you guys feel today versus when you first joined?

Jamie Miller, CFO, PayPal: We feel really, encouraged and excited today. The team, I would say, over the last two years has really been operating with a lot of focus and intensity around, you know, our shift to profitable growth. And while we still have a lot more work to do, we’re really encouraged by a lot of the different elements of what we’re seeing. You know, when we came in, one of the first things we did is really said, listen, you know, we are very focused on profitable growth. And across some of our businesses, this meant different things.

But what we’re seeing across our processing and value added services group with, you know, really nice consecutive, margin growth, what we’re seeing across Venmo, with respect to just sort of the acceleration, the igniting of growth at Venmo, and and just really constructive around branded checkout as well. You know, it it gets back to really delivering for our customers. It is all around focusing on the value prop we bring, focusing on the experiences we bring, the innovation. And we’re really seeing good signs of that. You know, with respect to branded checkout in particular, buy now pay later growth, pay with Venmo growth, even our debit and our our p two p growth has been really exciting as well.

But, you know, when I level up, we feel really good about the underlying trajectory being being really strong. And that over the next several quarters and couple of years, you know, we’ll continue to to tell our story around that.

Unidentified speaker, Analyst: Okay. And we’re gonna take through a lot of that, as we go. But, maybe just to start on the news from last week, there was some press about, a service disruption in Germany. If you could just clear the air there. What happened if we should expect there to be some financial impact this quarter?

Yeah.

Jamie Miller, CFO, PayPal: Yeah. A couple of weeks ago, we had a temporary service interruption that primarily, affected a small percentage of accounts in Germany for a short period of time. The underlying issue was related to a system update, and it’s been fixed. You know, having said that, you know, every customer matters to us, and safety and security is our our top priority. And we’ve been working to review the incident.

But as we work through that, you know, really working to resolve and work with our customers and merchants who were impacted by that. You know, when you come over to the financial side of things, I think about this in two ways. First is, you know, payment volume. And on that front, we have seen minimal impact. And then with respect to the expense side of things, you know, I do expect that in the quarter, we’ll provision some level of transaction loss or operating costs.

And at this point, when when I look at our quarter to date performance, I expect to absorb that within our guidance framework.

Unidentified speaker, Analyst: Okay. Alright. That’s helpful. Turning to Branded Checkout. So TPV growth there has been solidly in the mid single digits for the last six quarters.

It slowed by a point, in 2Q to 5%. There were some tariff related pressure on APAC based marketplaces that you guys called out. If you could give us any update on how trends have shaped up quarter to date through August when you guys had reported, it sounded like things have gotten a little bit better at least on the tariff related headwinds. But any other puts and takes within branded? And sorry, is a three part question.

And then just with de minimis ending for non China based shipments, how you guys are thinking about the downstream impact of that on the branded TPV?

Jamie Miller, CFO, PayPal: Yeah. So we’ve been really consistent the last five or six quarters, as you mentioned, with branded checkout growth, at 5% to 6%. And, in the second quarter, we did see some impact related to, you know, to what we believe is tariff related action, primarily the China to US corridor. The short story on third quarter is that there’s not much new to report, you know, since we talked about it on our earnings. We are seeing, you know, less, what we believe, less tariff related impact.

But right now, what we’re seeing is very consistent performance with the last couple of quarters and really square squarely within that mid single digit range. You know, if you go over and talk about the de minimis piece of this, you know, we have not seen any impact, as it relates to the lifting of global, you know, the global de minimis exemption. When you look at the activity, you know, we had said before that the China to US corridor was about two points of TPV. When you broaden that to global, it it’s less than 3% still. So it’s still within a similar zone.

So, you know, lots to continue to monitor here. We still have September in front of us, but that that’s probably how I’d frame it.

Unidentified speaker, Analyst: Okay. So the 3% of the exposure to the de minimis outside. Okay. Interesting. Okay.

And so sticking with branded, if we go through some of the main initiatives, the biggest one has been getting merchants upgraded to the latest branded experience. And you’ve said roughly, I think, 60% of U. S. Transactions are on the latest experience. It’s 15% globally.

You’ve targeted that 15% to get to 80 by 2027 in the medium term targets. First, just talk through the visibility into getting to that 80% level, the mechanics of getting merchants upgraded, and if there’s any nuance depending on country or region just as now you’re porting more, in Europe if that motion looks similar to what it’s been in The US?

Jamie Miller, CFO, PayPal: Yeah. So maybe I’ll start, with just talking generally about branded checkout. When we think about, the shifting in our branded checkout profile, we’ve thought about it in three big buckets. First, includes our upgrade to the latest branded experience for our merchants. But that also includes, the investments we’ve been making around branded checkout and things like offline, omni, debit, all around consumer habituation back to the product.

The second is buy now, pay later, and the third would be pay with Venmo. And so if we think about the the rollout of the checkout experiences, we really started this process about nine months ago. And we’re already at the July at up 60% penetration in The US. You know, so we’ve been making really good progress across our merchant cohorts. We started with Germany and The UK

And globally, by the July, we were about in the mid teens percent. And when you look at, you know, as we progress to the end of the year, we expect further progress there. And, you know, and generally, when you look at the framework you mentioned to 80%, you know, we think we’re well on track, you know, within that that three year time frame. When you actually look at just the the level of complexity in it, you know, it really depends on the merchant. In The US, in particular, we have a lot of merchants who are not on our latest integration.

And we also have a lot of merchants where, you know, there’s they’re very bespoke checkout flows, and how we integrate that with them can be complicated. And so as we go through this process with them, it can take a couple of weeks. It can take a handful of months. And typically, it requires, like, us bringing them up and then really working to optimize and tune, the integration and the experience till we till we get to a good experience for them, brings a good experience for our consumers, and then brings that conversion uplift back to what we expected to see as well. The other good news is as we do this, we are seeing higher selection rate, and we are seeing, you know, better latency and and better results too in terms of the overall, I guess, flywheel, if you wanna call that between merchant and consumers as it relates to branded checkout.

That’s The US side of it. When you think about the, the non US side of it, a lot of our merchants in Europe, in particular, are already integration. So that makes the process a lot more straightforward there. And so, in general, you know, we just expect, you know, continued movement as we execute, and we’re just laser focused on that.

Unidentified speaker, Analyst: Okay. And I I wanna follow-up on some of what you were just saying about the the flywheel effect that you’ve seen from those that are on the latest experience. I think the numbers that you’ve quoted that there’s roughly a one point uplift in conversion from merchants that have moved on to the latest or there’s an expected one point uplift in conversion from merchants that moved. And it it sounds like so far the cohorts that you have migrated, you’re seeing that conversion benefit. Any more detail just on what you’ve observed so far from the merchants that have migrated over to the latest experience?

Jamie Miller, CFO, PayPal: Yeah. You know, so we talked about 60% in The US and in mid teens, mid teens globally. And as you do this, we do follow the cohorts and really look to see what do we see with specific cohorts of transactions and run them both pre, post, and follow them. We do see uplift coming through. You know, as it relates to broader branded checkout and, you know, our relative growth, it’s just a very small percentage right now in terms of, you know, you look at total t p of branded versus what’s really come over on the experience.

So we expect that impact to really flow over time, and it’s been pretty limited so far.

Unidentified speaker, Analyst: Okay. And so if we tie it all together for for branded at the Investor Day, the targets that you laid out were to get branded TPB growth to eight to 10% in ’27. There was a comment on the two q call about expecting to accelerate branded growth over the next few quarters, I think it was. Just so we’re all on the same page, if you could if if you wanted to put a finer point on the timing there, and to clarify whether that means an acceleration off the 5% that we saw in February or if that’s an above mid single digit growth, we should interpret that as 7%. Yeah.

Jamie Miller, CFO, PayPal: When we were talking about that in our second quarter call, what we were really talking about was exiting ’25 at a growth rate higher than where we entered ’25 and really having sort of rolling acceleration as we moved into ’26 and into ’27. You know, what we’re really focused on right now is is what we can control with respect to branded checkout. You know, as you know, from a macro perspective, there’s been a lot to watch. But we’re laser focused on not just the experiences we talked about, but also the customer habituation, buy now, pay later, and pay with Venmo. You know, and those two in particular, are super interesting in terms of their contribution.

I mean, buy now, pay later, is something that we really reinvigorated about a year ago in the company. We hadn’t spent a ton of time on it prior to that. I mean, we had the product. It was certainly complimentary. But we hadn’t viewed it, number one, as a growth lever for branded checkout.

We also hadn’t viewed it as really a customer acquisition channel. And so as we’ve done that, buy now pay later is growing at more than 20% with an 18% monthly average account growth that comes with it. The merchant, experience in this is really good. And as an example, you know, recently Ace Hardware is a great example where they saw a 35% increase in sales when they shifted our buy now pay later presentment upstream and ran a 0% APR campaign alongside with it. So it’s and they saw a seven times increase in average order value.

So you can see that kind of experience happening that is a real feature and selling point for our merchants. The other side of this is the pay with Venmo side of this, which, you know, when you look at that growth of 45%, 25% growth in MAA’s, and again, a really delightful experience for the merchants who are doing it, whether that’s quick serve restaurants, Taco Bell, things like that, or other verticals like travel and gaming. But coming back to where you started, with respect to kind of, okay, pegging a specific month or specific impact, I think there’s a level of false precision. And I think that’s where we had a little bit of confusion maybe before. You know, it’s it’s hard to say a given month or a given quarter exactly what to expect, especially given, you know, some of the things we’re watching right now.

You know, what we really expect is rolling improvement over time as we move through ’25 and into ’26. And, importantly, our 2027 framework is something that we believe is still fully intact.

Unidentified speaker, Analyst: Okay. No. That’s very clear. And so shifting to the branded experiences and PayPal Everywhere. So TPV growth for the branded experiences, that’s been in the high single digits.

That also includes the debit volume from PayPal Everywhere and the Venmo debit volume. There’s been good uptake of the debit card we’ve seen so far just on the back of the marketing campaign. You’ve got the NFC wallet that’s launched in Germany. Venmo debit card users are growing over 40%. If you could just talk through kind of progress on on each of those and what the early signs have been on that kind of feedback loop kind of getting back into the branded, TPV, potentially to where that drives an acceleration in branded TPV.

Jamie Miller, CFO, PayPal: I think this is an important one to talk about because when you think about branded experiences, one of the reasons we wanted to start using and sharing information on that is because it really reflects how people use PayPal and the branding and and and, engage with us beyond just branded checkout, but all of that activity brings halo effect back and brings, you know, our accounts and our users back to the branded checkout flow as well. And, you know, you pointed out a couple of them, which we’re really excited about. About a year ago, we launched PayPal Everywhere, which was an experience to really bring the debit card to tap to pay transactions for PayPal. And it was also something to really engage consumers in a rewarding way with a a nice rewards program around how to think about PayPal in places beyond just online checkout. And so what you saw last year was our big brand campaign with Will Ferrell, which coupled with it, you know, this notion of tap to pay, pay everywhere, which I think that combination of brand reinvigoration coupled with how to use our product and and product attachment was really, really important.

And you look year over year, we’ve got 5,000,000,000 more PayPal debit cards today than we had a year ago. And we’re seeing really nice, halo effect back back to branded. When someone uses debit, they then will come back and about we’ll see about a 20 to 30% lift on their branded checkout transactions as a result of it. It just becomes something where they’re more engaged and more habituated around that. And it’s a really good experience.

If you haven’t used the PayPal tap tap to pay, it’s it’s very seamless and very good. And the rewards program, was really good as well, offering, you know, 5% cash back across a number of different categories. And we capped it. So from a financial perspective, you know, we we we have very healthy unit economics on this, but the debit unit economics are as good or better than branded checkout. And so it’s just sort of a nice complimentary product.

The other piece of this, which I think is also important, is that a couple of months ago, we rolled out our n f c NFC, PayPal wallet in Germany. And this has been really fun too because it is true tap to pay, and it also brings with it sort of an embedded ability to use buy now, pay later at checkout. We’ve run a series of rolling sort of daily new offers from, from merchants as we’ve done it. We’ve run some campaigns like that with our customers. And it again, it brings people into the app every single day as they use it.

And we’re seeing very high usage for the people who’ve adopted. We’ve seen 3,000,000 NFC enrollments just in a couple of months. So we’re really excited about that. But I think it says a lot about the power of what we can still do in the offline space with our consumers in bringing the holistic power of PayPal to them and how we can continue to to grow through them. Okay.

Unidentified speaker, Analyst: No. That all sounds good. Just moving down the the income statement a bit. Just on the the take rate, I thought that was one of the standouts from the two q print, at least. So excluding the hedge gains, take rates were down only a couple basis points year over year.

That was a a big improvement for q one. I thought one of the interesting things on the call, you you talked specifically about branded take rates as having been more stable Mhmm. Year over year. So just how much of that is mix versus pricing? Any other call outs within the take rate that we should be mindful of as we think about the second half, just Venmo growth, peer to peer growth, anything else just puts and takes wise?

Jamie Miller, CFO, PayPal: Yeah. When you look at, take rate, and I’ll take second quarter as an example, you know, half of that movement was FX, so let’s set that aside. But but the rest really did sit more within branded. And a good chunk of that, I think, is good news, which is relates to we had a higher SMB mix in branded than we had seen over the past couple several quarters. And so that mixing between SMB and LE just brought, you know, some incremental take rate with it, which was which is good.

But the other side of it is we have seen some level of, I’ll call pricing stability or, you know, symmetry between TPV and revenue and branded checkout over the last couple of quarters as well. And, you know, you look at take rate generally. I mean, take rate is not something we manage to. It’s really more of an output. And you look at across the company at the different things we’re driving, whether it’s debit growth, which brings a lower take rate but high margin.

You look at payouts as an example, which is a low take rate product but very high margin. Some of the impact of the brain tree shifting that we’ve had, all of these things impact, you know, the take rate, mechanical calculation, you know, as we go through it. So, what we’re really focused on is driving profitable growth and that the mix of that is what really drives it. And over the next couple of quarters, I think you’ll continue to see some positive shifting, but you’ll also see as Braintree continues to inflect to growth, some impacting from that as well.

Unidentified speaker, Analyst: Okay. Alright. That’s clear. And then, on Venmo, I mean, we’ve seen good progress. TPV growth is at the highest level it’s been in three years.

This quarter revenue growth just excluding some of the one time benefit that was up over 20% year over year. If you could just talk through the main drivers there with the initiatives across pay with Venmo, debit card, and how you’re thinking about the sustainability of the 20% growth that we saw.

Jamie Miller, CFO, PayPal: Yeah. I guess with respect to the last part of that, I mean, we are just getting started at Venmo. You know, Venmo is an asset we’ve had for a long time that was pretty viral. It sort of grew on its own. And mid last year, we made some real investments in not only our leadership team, but really doubling down on growth and how to think about creating a flywheel effect in that product in and of itself.

And that’s a lot of the activity that you’ve seen us focus on with respect to Venmo. You mentioned 20% revenue growth, and that is our target and our plan over the next couple of years. But really starting with reinvigorating the app. So the app is more seamless. It’s easier to use.

You can go out and find your friends in a much easier way. There’s new features around it. If you haven’t used Venmo groups as an example, it’s like, I love Venmo groups. If you go on a trip with your friends and you need an easy way to split, you know, restaurant dinners or hotels or things like that, it’s super seamless. It’s super intuitive.

It’s way easier than anything else out there. But what’s nice about it is then you move to features like split pay where if you’re out at a restaurant with your friends and everybody’s paying you and reimbursing you for the meal, you can turn around and tap to pay with Venmo and use your Venmo balance to pay for that meal because split pay allows that in a seamless way and pay with Venmo allows you to do that too. So all of what we’re doing with pay with Venmo debit is is really about bringing that that reinvigoration to the brand and driving our consumers to think of that brand in a way that’s much more holistic than simply I pay you, I have an instant transfer and some things like that. It’s really exciting on a couple of fronts. You know, as we launched Venmo debit more broadly over the last year, you know, one of the big things we announced this summer was our Big 10, Big 12.

We were just talking about Michigan, Ohio State. But our Big Big 10, Big 12, brand launched with them over the last month. And it’s awesome because it not only means that NIL payments go through our payouts feature and end up in PayPal wallets or Venmo, wallets. But in in addition to that, it’s co branded Venmo debit cards. It is on campus tap to pay at things like bookstores and other places.

So it’s a really fun, you know, co branded sort of way to bring the brand to life. The other piece of this, and I talked about this a little bit earlier, you know, on pay with Venmo is what we have found with merchants, it is just a brand that merchants really wanna interact with because it brings a demographic that is young, it is affluent, and it’s something that because Venmo has always been mobile first, it works really well with, you know, mobile brands. And so when you use it and I was joking the other day with Ryan, like, it is a delightful brand. When you click pay with Venmo, it’s just seamless. It’s just, a really a really nice experience.

So all that to say, could see I gush about this brand, and I love watching them them them continue to to grow with it. It’s a place where, we see a lot of opportunity to continue to say sustain growth and do a lot of things with. Okay.

Unidentified speaker, Analyst: No. And I I think that’s all come through in the numbers or at least we’ve started to see it come through. Maybe going back to some of the marketing and and OpEx, we talked about the PayPal Everywhere brand campaign. But maybe more holistically, if you could talk about the investments you’re making in sales and marketing, where you’re spending the most, the type of impact that you’ve seen the the spending drive, and just how you think about kind of the overall managing of the cost structure while you’re still kind of managing for profitable growth, and we’ve seen a really good earnings growth algo from you guys.

Jamie Miller, CFO, PayPal: Yeah. One of the things we set out to do, in early twenty four first, was to harvest our OpEx. So really take OpEx back in places like enabling and driving through automation, through AI and other things, and ability to release funds and move it over and invest in marketing, product, engineering. And over the last couple of years, we’ve been able to reinvest about, $500,000,000 across those categories. And with that has come a significant boost in our marketing spend.

One of the things I guess I’d start with there is this is a brand that we had really not invested in through marketing in a long time. And so one of the first things we set out to do is really start with kind of a splash around brand reinvigoration. You know, when I talked about that earlier, but doing that in connection with product attach and a new product launch, I think was really successful for us. We talked about the stats. But as we’ve done, and really looked at where do we wanna spend our marketing dollars, we do wanna continue to spend money on brand reinvigoration, and that continues to be a certain percentage of that.

But product product attach, product launch has also been an important part. We talked about PayPal Everywhere. You’ve seen it on buy now, pay later. Our brand campaign this spring featured the pay later product. In addition, we also launched Venmo Everywhere, which was really around using Venmo Everywhere, whether it was all those features I talked about or Venmo debit as we launched that campaign with Amy Lou Woods and Patrick Schwarzenegger this spring.

Having said that, you know, we’re really focused now on real product attach, merchant co marketing, and getting into where we can do things at point of sale. So whether that’s PayPal banners at, point of sale, whether that’s offers and and, you know, merchant co marketing around offers, whether that’s offering people ways to come in and become users with us, become users with our merchants. All of those things are things we’re doing, but it drives, really good attach around the core MAAs and around branded checkout TVV. You know, when I level up and think about ROIs, we’ve been getting better and better in that, you know, as we built out and really gotten deeper on our marketing our marketing function. You know, in The US, I’d say our ROIs have been twelve to eighteen months.

In a place like The UK where, you know, we’re really focused more on really inflecting that market for us, you know, it’s been more like two years. But we’re trying to be really thoughtful about how and where we deploy. And overall, I see marketing and our shift to incremental marketing and getting laser focused on that to get better and better over time too.

Unidentified speaker, Analyst: Okay. No. That that’s all well taken. And moving on to Braintree, been a lot of moving pieces over the last couple of years. It it seems like it’s getting back to a more normal growth algo, at least.

I mean, TPV growth was back to flat year over year in ’2 q. You’re expected to accelerate to the mid to high singles by the end of this year, I think e com level growth in ’26, at least have have been the comments. How much of that acceleration is just from some of the comps tied to the pricing to value strategy from last year versus front book growth? And then on the front book growth, I’d be curious to hear where you’re seeing the most traction US versus international. Any more detail there?

Jamie Miller, CFO, PayPal: Yeah. So, with respect to Raintree, it’s been another story of the real shift to profitable growth. And that’s something that when we set out in early twenty four to do, you know, we did a number of things. We really looked at, the team and made some took some actions to really bring in some talent and bolster the team. We also took a really hard look at our competitive position and our own product performance.

And I’d say the good news is our product performance is excellent. From a competitive position perspective, what we really would stratify is that we have a lot of opportunity to price to value in a way that our competitors already do. We also have a lot of opportunity to as we operationally work with our merchants to ensure we’re pricing for what we do and bring better, attach value added services as we do it. And all of that’s been part of the Braintree, plan and what we’ve been executing over the last, eighteen months. We’re at now our fifth consecutive quarter of Braintree profitable contribution to transaction margin dollars, which is really exciting, and we expect that to continue.

When you look at the revenue line, yes, I mean, all the things you mentioned around our profile in the second half is what we expect. Some of that is related to lapping. Others really relates to growth with existing accounts, and importantly, growth of the value added services I mentioned. That has been a space where we’ve built out, you know, incremental services, and the team has been really focused on the attach of that and how that flows through. And I’d say the other thing that’s been really positive is, you know, when we set out to do this, you know, there was we’ve got a lot of questions from investors around how are these merchant conversations going, what do they feel like, what are you seeing.

And if anything, I would tell you that it’s been really, really healthy for us, because it is more top, top, top. It is more strategic. It is more around how can we bring you more value. And it’s not just about, you know, the price piece or the this piece or the that piece. And so what we’ve seen is we’ve actually retained more business than we expected to when we started the process, which is really positive.

But I think the other side of it is part of the reason we’re seeing good traction on the value added services is because we’re just having more holistic conversations.

Unidentified speaker, Analyst: Okay. And that dovetails into what I was gonna ask next just around value added services have been a consistent or they’ve started to be a call out now as a TM dollar contributor. Can you give us an update just on what you have in market today? The road map for more in the the second half and in ’26. And if we think about Braintree getting back to, let’s call it, e com ish level growth in ’26, if we should expect the TM dollar growth from Braintree to be in excess of the TPV growth.

Jamie Miller, CFO, PayPal: Yes. So so if we talk about value added services generally, we’ve got a number of services in market, whether that’s f f FX as a service, orchestration, risk as a service, payouts, things like that. And if you take something like risk as a service, you know, this is where we take, you know, our AI, our machine learning, and we really build algorithms that help merchants manage risk better. And whether that is, chargeback protection, whether it’s fraud protection, whether it’s dispute automation, all of that is really built off, you know, what are billions of transactions that we process and hundreds of millions of accounts. And so the data that feeds it is really powerful in terms of bringing just really effective usage for our merchants on something like that.

You know, we also have products like payouts, which I talked about a little bit before as it related to Venmo and the Big Ten, Big Twelve partnership. But this is a product where, you know, as we have payouts push out to bank accounts of which we’ve got dozens of countries where we can do that or into PayPal and and the PayPal and Venmo app, you know, this is a product that has been been really popular with our merchants, brings, very high margin. And importantly, about 50% of the funds we push out make their way back to the PayPal or Venmo wallets as we do it. So that’s really positive as well. So, you know, all of this stuff said that when you come back to looking at Braintree growth and when you come back to transaction margin dollar growth, as we look at our plans over the next, two, three, four years, we see very clear tranching as to how we continue to drive transaction margin dollar growth for Braintree and, have very clear plans to do that.

Yep.

Unidentified speaker, Analyst: And and maybe just to wrap, to tie it back to the second half of the year at least. So the x float transaction margin dollar guide for the full year, I think, is six to 7%. You’ve been running above that year to date, so there’s a bit of an implied decel in the second half. Some of the moving pieces, you’ve got comps on credit within OVAS, you guys have talked about. Those are tougher comps in the second half.

I think you’re also leaving some room for e com growth at the market level to slow. If if you could just frame the moving pieces relative to the 7% growth that we’ve seen from you in the first half, just what to be mindful of.

Jamie Miller, CFO, PayPal: Yes. So, for the first half, we did see 7% TM growth excluding the interest component. And to your point, second half is really two themes. One is we saw outsized credit contribution in the first half. That credit contribution will become more muted in the second half just as we have higher comps from last year.

The other piece of it is that, and we talked about this on our first quarter and our second quarter earnings calls, we have left room within our guide for some level of e comm deceleration just given the environment that we have been in with, particularly as it relates to tariffs, but some of the macro gyration that’s been happening. And so that certainly is a part of that as well. The other thing I would just mention is if you look at transaction margin dollars including interest is that, you know, we do expect about a $125,000,000 headwind in the second half, just because, you know, last year we saw the interest rates cut cut cuts come through. And this year, you know, we just expect that natural flow downward as a result of that. But still, you’re well within our guidance framework for transaction margin dollars for the year.

Okay?

Unidentified speaker, Analyst: Alright. Well, I think that’s a good place to to wrap it up. But, we appreciate you being here.

Jamie Miller, CFO, PayPal: Yeah. Thanks so much for having me.

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