PAYPAL HOLDINGS, INC., 10-Q filed on 5/9/2023
Quarterly Report
v3.23.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2023
May 02, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2023  
Document Transition Report false  
Entity File Number 001-36859  
Entity Registrant Name PayPal Holdings, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 47-2989869  
Entity Address, Address Line One 2211 North First Street  
Entity Address, City or Town San Jose,  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95131  
City Area Code 408  
Local Phone Number 967-1000  
Title of 12(b) Security Common stock, $0.0001 par value per share  
Entity Trading Symbol PYPL  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   1,115,713,968
Entity Central Index Key 0001633917  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.23.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 7,101 $ 7,776
Short-term investments 3,559 3,092
Accounts receivable, net 967 963
Loans and interest receivable, net of allowances of $638 and $598 as of March 31, 2023 and December 31, 2022, respectively 7,495 7,431
Funds receivable and customer accounts 35,276 36,357
Prepaid expenses and other current assets 2,162 1,898
Total current assets 56,560 57,517
Long-term investments 4,632 5,018
Property and equipment, net 1,633 1,730
Goodwill 11,195 11,209
Intangible assets, net 730 788
Other assets 2,436 2,455
Total assets 77,186 78,717
Current liabilities:    
Accounts payable 142 126
Funds payable and amounts due to customers 39,026 40,107
Accrued expenses and other current liabilities 4,164 4,055
Income taxes payable 577 813
Total current liabilities 43,909 45,101
Deferred tax liability and other long-term liabilities 2,938 2,925
Long-term debt 10,481 10,417
Total liabilities 57,328 58,443
Commitments and contingencies (Note 13)
Equity:    
Common stock, $0.0001 par value; 4,000 shares authorized; 1,122 and 1,136 shares outstanding as of March 31, 2023 and December 31, 2022, respectively 0 0
Preferred stock, $0.0001 par value; 100 shares authorized, unissued 0 0
Treasury stock at cost, 192 and 173 shares as of March 31, 2023 and December 31, 2022, respectively (17,522) (16,079)
Additional paid-in-capital 18,529 18,327
Retained earnings 19,749 18,954
Accumulated other comprehensive income (loss) (898) (928)
Total PayPal stockholders’ equity 19,858 20,274
Total liabilities and equity $ 77,186 $ 78,717
v3.23.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Loans and interest receivable, allowances $ 638 $ 598
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 4,000,000,000 4,000,000,000
Common stock, shares outstanding (in shares) 1,122,000,000 1,136,000,000
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Treasury stock, shares (in shares) 192,000,000 173,000,000
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Statement [Abstract]    
Net revenues $ 7,040 $ 6,483
Operating expenses:    
Transaction expense 3,283 2,817
Transaction and credit losses 442 369
Customer support and operations 488 534
Sales and marketing 436 594
Technology and development 721 815
General and administrative 507 607
Restructuring and other charges 164 36
Total operating expenses 6,041 5,772
Operating income 999 711
Other income (expense), net 75 (82)
Income before income taxes 1,074 629
Income tax expense 279 120
Net income (loss) $ 795 $ 509
Net income (loss) per share:    
Basic (in dollars per share) $ 0.70 $ 0.44
Diluted (in dollars per share) $ 0.70 $ 0.43
Weighted average shares:    
Basic (in shares) 1,129 1,163
Diluted (in shares) 1,134 1,172
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 795 $ 509
Other comprehensive income (loss), net of reclassification adjustments:    
Foreign currency translation adjustments (“CTA”) (20) (95)
Net investment hedges CTA gains, net 27 21
Tax expense on net investment hedges CTA gains, net (6) (5)
Unrealized losses on cash flow hedges, net (111) (3)
Tax benefit on unrealized losses on cash flow hedges, net 6 0
Unrealized gains (losses) on investments, net 175 (293)
Tax (expense) benefit on unrealized gains (losses) on investments, net (41) 67
Other comprehensive income (loss), net of tax 30 (308)
Comprehensive income (loss) $ 825 $ 201
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Common Stock Shares
Treasury Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2021   1,168        
Beginning balance at Dec. 31, 2021 $ 21,727   $ (11,880) $ 17,208 $ (136) $ 16,535
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 509         509
Foreign CTA (95)       (95)  
Net investment hedges CTA gains, net 21       21  
Tax expense on net investment hedges CTA gains, net (5)       (5)  
Unrealized losses on cash flow hedges, net (3)       (3)  
Tax benefit on unrealized losses on cash flow hedges, net 0          
Unrealized gains (losses) on investments, net (293)       (293)  
Tax (expense) benefit on unrealized gains (losses) on investments, net 67       67  
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes (in shares)   4        
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes (273)     (273)    
Common stock repurchased (in shares)   (11)        
Common stock repurchased (1,500)   (1,500)      
Stock-based compensation 447     447    
Other 1     1    
Ending balance (in shares) at Mar. 31, 2022   1,161        
Ending balance at Mar. 31, 2022 $ 20,603   (13,380) 17,383 (444) 17,044
Beginning balance (in shares) at Dec. 31, 2022 1,136 1,136        
Beginning balance at Dec. 31, 2022 $ 20,274   (16,079) 18,327 (928) 18,954
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 795         795
Foreign CTA (20)       (20)  
Net investment hedges CTA gains, net 27       27  
Tax expense on net investment hedges CTA gains, net (6)       (6)  
Unrealized losses on cash flow hedges, net (111)       (111)  
Tax benefit on unrealized losses on cash flow hedges, net 6       6  
Unrealized gains (losses) on investments, net 175       175  
Tax (expense) benefit on unrealized gains (losses) on investments, net (41)       (41)  
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes (in shares)   5        
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes (157)     (157)    
Common stock repurchased (in shares)   (19)        
Common stock repurchased (1,432)   (1,432)      
Excise tax on common stock repurchased (11)   (11)      
Stock-based compensation $ 359     359    
Ending balance (in shares) at Mar. 31, 2023 1,122 1,122        
Ending balance at Mar. 31, 2023 $ 19,858   $ (17,522) $ 18,529 $ (898) $ 19,749
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Cash flows from operating activities:    
Net income (loss) $ 795 $ 509
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Transaction and credit losses 442 369
Depreciation and amortization 270 328
Stock-based compensation 345 429
Deferred income taxes (67) (16)
Net (gains) losses on strategic investments (48) (14)
Other (92) 65
Changes in assets and liabilities:    
Accounts receivable (3) (50)
Accounts payable 3 (29)
Income taxes payable (235) 17
Other assets and liabilities (240) (391)
Net cash provided by operating activities 1,170 1,217
Cash flows from investing activities:    
Purchases of property and equipment (170) (191)
Proceeds from sales of property and equipment 1 3
Purchases and originations of loans receivable (8,267) (5,525)
Principal repayment of loans receivable 8,063 5,054
Purchases of investments (6,100) (8,604)
Maturities and sales of investments 5,445 8,751
Funds receivable 1,076 (239)
Collateral posted related to derivative instruments, net (22) (1)
Other investing activities 8 0
Net cash provided by (used in) investing activities 34 (752)
Cash flows from financing activities:    
Proceeds from issuance of common stock 1 3
Purchases of treasury stock (1,432) (1,500)
Tax withholdings related to net share settlements of equity awards (149) (244)
Borrowings under financing arrangements 72 286
Repayments under financing arrangements (5) (104)
Funds payable and amounts due to customers (1,020) 863
Collateral received related to derivative instruments, net (129) 26
Other financing activities 0 1
Net cash used in financing activities (2,662) (669)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (4) 18
Net change in cash, cash equivalents, and restricted cash (1,462) (186)
Cash, cash equivalents, and restricted cash at beginning of period 19,156 18,029
Cash, cash equivalents, and restricted cash at end of period 17,694 17,843
Supplemental cash flow disclosures:    
Cash paid for interest 2 12
Cash paid for income taxes, net 495 47
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows:    
Cash and cash equivalents 7,101 4,861
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows 17,694 17,843
Short-term investments    
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows:    
Restricted cash 13 27
Funds receivable and customer accounts    
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows:    
Restricted cash $ 10,580 $ 12,955
v3.23.1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
OVERVIEW AND ORGANIZATION

PayPal Holdings, Inc. (“PayPal,” the “Company,” “we,” “us,” or “our”) was incorporated in Delaware in January 2015 and is a leading technology platform that enables digital payments and simplifies commerce experiences on behalf of merchants and consumers worldwide. PayPal is committed to democratizing financial services to help improve the financial health of individuals and to increase economic opportunity for entrepreneurs and businesses of all sizes around the world. Our goal is to enable our merchants and consumers to manage and move their money anywhere in the world in the markets we serve, anytime, on any platform, and using any device when sending payments or getting paid, including person-to-person payments.

We operate globally and in a rapidly evolving regulatory environment characterized by a heightened focus by regulators globally on all aspects of the payments industry, including countering terrorist financing, anti-money laundering, privacy, cybersecurity, and consumer protection. The laws and regulations applicable to us, including those enacted prior to the advent of digital payments, continue to evolve through legislative and regulatory action and judicial interpretation. New or changing laws and regulations, including changes to their interpretation and implementation, as well as increased penalties and enforcement actions related to non-compliance, could have a material adverse impact on our business, results of operations, and financial condition. We monitor these areas closely and are focused on designing compliant solutions for our customers.

SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and principles of consolidation

The accompanying condensed consolidated financial statements include the financial statements of PayPal and our wholly- and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Investments in entities where we have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investee’s results of operations is included in other income (expense), net on our condensed consolidated statements of income (loss). Investments in entities where we do not have the ability to exercise significant influence over the investee are accounted for at fair value or cost minus impairment, if any, adjusted for changes resulting from observable price changes, which are included in other income (expense), net on our condensed consolidated statements of income (loss). Our investment balance is included in long-term investments on our condensed consolidated balance sheets.

We determine at the inception of each investment, and re-evaluate if certain events occur, whether an entity in which we have made an investment is considered a variable interest entity (“VIE”). If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation. As of March 31, 2023 and December 31, 2022, no VIEs qualified for consolidation as the structures of these entities do not provide us with the ability to direct activities that would significantly impact their economic performance. As of March 31, 2023 and December 31, 2022, the carrying value of our investments in nonconsolidated VIEs was $135 million and $128 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets. Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $233 million and $232 million as of March 31, 2023 and December 31, 2022, respectively.

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 10, 2023.

In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented. Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three months ended March 31, 2023.
Reclassifications

Beginning with the fourth quarter of 2022, we reclassified certain cash flows related to our collateral security arrangements for derivative instruments from cash flows from operating activities to cash flows from investing activities and cash flows from financing activities within the condensed consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current period presentation.

The current period presentation classifies all changes in collateral posted and collateral received related to derivative instruments on our condensed consolidated statements of cash flows as cash flows from investing activities and cash flows from financing activities, respectively. We believe that the current period presentation provides a more meaningful representation of the nature of the cash flows and allows for greater transparency as the cash flows related to the derivatives impact operating cash flows upon settlement exclusive of the offsetting cash flows from collateral.

The following table presents the effects of the changes on the presentation of these cash flows to the previously reported condensed consolidated statements of cash flows:
Three Months Ended March 31, 2022
(In millions)
As Previously Reported (1)
AdjustmentsReclassified
Net cash provided by (used in):
Operating activities(2)
$1,242 $(25)$1,217 
Investing activities(3)
(751)(1)(752)
Financing activities(4)
(695)26 (669)
Effect of exchange rates on cash, cash equivalents, and restricted cash18 — 18 
Net decrease in cash, cash equivalents, and restricted cash$(186)$— $(186)
(1) As reported in our Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on April 28, 2022.
(2) Financial statement line impacted in operating activities was “Other assets and liabilities.”
(3) Financial statement line impacted in investing activities was “Collateral posted related to derivative instruments, net.”
(4) Financial statement line impacted in financing activities was “Collateral received related to derivative instruments, net.”

Use of estimates

The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and credit losses, income taxes, loss contingencies, revenue recognition, the valuation of goodwill and intangible assets, and the valuation of strategic investments. We base our estimates on historical experience and various other assumptions which we believe to be reasonable under the circumstances. Actual results could materially differ from these estimates.

Recently adopted accounting guidance

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures (Topic 326): Financial Instruments – Credit Losses. This amended guidance eliminated the accounting designation of a loan modification as a TDR and the measurement guidance for TDRs. The amendments also enhanced existing disclosure requirements and introduced new requirements related to modifications of receivables due from borrowers experiencing financial difficulty. Additionally, this guidance required entities to disclose gross charge-offs by year of origination for financing receivables, such as loans and interest receivable. The amended guidance was effective for fiscal years beginning after December 15, 2022 and was required to be applied prospectively, except for the recognition and measurement of TDRs, which could be applied on a modified retrospective basis. We adopted this guidance effective January 1, 2023 on a prospective basis. Our financial statements were not materially impacted upon adoption. For additional information, see “Note 11—Loans and Interest Receivable.”
There are other new accounting pronouncements issued by the FASB that we have adopted or will adopt, as applicable. We do not believe any of these accounting pronouncements have had, or will have, a material impact on our condensed consolidated financial statements or disclosures.
v3.23.1
REVENUE
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
We enable our customers to send and receive payments. We earn revenue primarily by completing payment transactions for our customers on our payments platform and from other value added services. Our revenues are classified into two categories: transaction revenues and revenues from other value added services.

DISAGGREGATION OF REVENUE

We determine operating segments based on how our chief operating decision maker (“CODM”) manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance. Our CODM is our Chief Executive Officer, who regularly reviews our operating results on a consolidated basis. We operate as one segment and have one reportable segment. Based on the information provided to and reviewed by our CODM, we believe that the nature, amount, timing, and uncertainty of our revenue and cash flows and how they are affected by economic factors are most appropriately depicted through our primary geographical markets and types of revenue categories (transaction revenues and revenues from other value added services). Revenues recorded within these categories are earned from similar products and services for which the nature of associated fees and the related revenue recognition models are substantially the same.

The following table presents our revenue disaggregated by primary geographical market and category:
 Three Months Ended March 31,
 20232022
(In millions)
Primary geographical markets
U.S.$4,147 $3,671 
Other countries(1)
2,893 2,812 
Total net revenues(2)
$7,040 $6,483 
Revenue category
Transaction revenues$6,364 $5,998 
Revenues from other value added services676 485 
Total net revenues(2)
$7,040 $6,483 
(1) No single country included in the other countries category generated more than 10% of total net revenues.
(2) Total net revenues include $451 million and $187 million for the three months ended March 31, 2023 and 2022, respectively, which do not represent revenues recognized in the scope of Accounting Standards Codification Topic 606, Revenue from contracts with customers. Such revenues relate to interest and fees earned on loans and interest receivable, as well as hedging gains or losses, and interest earned on certain assets underlying customer balances.

Net revenues are attributed to the country in which the party paying our fee is located.
v3.23.1
NET INCOME (LOSS) PER SHARE
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE NET INCOME (LOSS) PER SHAREBasic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period. The dilutive effect of outstanding equity incentive awards is reflected in diluted net income (loss) per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive common shares. During periods when we report net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items would decrease the net loss per share.
The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated:
 Three Months Ended March 31,
 20232022
(In millions, except per share amounts)
Numerator:
Net income (loss)$795 $509 
Denominator:
Weighted average shares of common stock - basic1,129 1,163 
Dilutive effect of equity incentive awards5 9 
Weighted average shares of common stock - diluted1,134 1,172 
Net income (loss) per share:
Basic$0.70 $0.44 
Diluted$0.70 $0.43 
Common stock equivalents excluded from income (loss) per diluted share because their effect would have been anti-dilutive or potentially dilutive14 6 
v3.23.1
BUSINESS COMBINATIONS
 3 Months Ended
Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Combinations BUSINESS COMBINATIONSThere were no acquisitions accounted for as business combinations or divestitures completed in the three months ended March 31, 2023 and 2022.
v3.23.1
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
GOODWILL

The following table presents goodwill balances and adjustments to those balances during the three months ended March 31, 2023:
December 31,
2022		Goodwill Acquired Adjustments March 31,
2023
 (In millions)
Total goodwill$11,209 $— $(14)$11,195 

The adjustments to goodwill during the three months ended March 31, 2023 pertained to foreign currency translation adjustments.

INTANGIBLE ASSETS

The components of identifiable intangible assets were as follows:
 March 31, 2023December 31, 2022
 Gross Carrying Amount
Accumulated Amortization 
Net Carrying AmountWeighted Average Useful Life (Years)
Gross Carrying Amount
Accumulated Amortization 
Net Carrying AmountWeighted Average Useful Life (Years)
 (In millions, except years)
Intangible assets:        
Customer lists and user base$1,596 $(1,062)$534 7$1,664 $(1,092)$572 7
Marketing related394 (343)51 5395 (339)56 5
Developed technology1,079 (1,037)42 31,099 (1,048)51 3
All other439 (336)103 7438 (329)109 7
Intangible assets, net$3,508 $(2,778)$730 $3,596 $(2,808)$788  
        

In the three months ended March 31, 2023, we retired approximately $84 million of fully amortized intangible assets, of which $65 million and $19 million were included in customer lists and user base and developed technology, respectively. Amortization expense for intangible assets was $57 million and $118 million for the three months ended March 31, 2023 and 2022, respectively.

Expected future intangible asset amortization as of March 31, 2023 was as follows (in millions):

Fiscal years:
Remaining 2023$160 
2024195 
2025159 
2026102 
202764 
Thereafter50 
Total$730 
v3.23.1
LEASES
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES LEASES
PayPal enters into various leases, which are primarily real estate operating leases. We use these properties for executive and administrative offices, data centers, product development offices, customer services and operations centers, and warehouses.

While a majority of our lease agreements do not contain an explicit interest rate, certain of our lease agreements are subject to changes based on the Consumer Price Index or another referenced index. In the event of changes to the relevant index, lease liabilities are not remeasured and instead are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.

The short-term lease exemption has been adopted for all leases with a duration of less than 12 months.

PayPal’s lease portfolio includes a small number of subleases. A sublease situation can arise when currently leased real estate space is available and is surplus to operational requirements.

As of March 31, 2023, we had no finance leases.

The components of lease expense were as follows:
Three Months Ended March 31,
20232022
(In millions)
Lease expense
Operating lease expense$41 $42 
Sublease income(2)(2)
Lease expense, net$39 $40 
Supplemental cash flow information related to leases was as follows:
Three Months Ended March 31,
20232022
(In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$43 $41 
Right-of-use (“ROU”) lease assets obtained in exchange for new operating lease liabilities$(1)$83 
Other non-cash ROU lease asset activity$(21)$(10)

Supplemental balance sheet information related to leases was as follows:
March 31,
2023		December 31,
2022
(In millions, except weighted-average figures)
Operating ROU lease assets$512 $574 
Current operating lease liabilities151 151 
Operating lease liabilities529 569 
Total operating lease liabilities$680 $720 
Weighted-average remaining lease term—operating leases
5.7 years5.7 years
Weighted-average discount rate—operating leases
4 %3 %

Future minimum lease payments for our operating leases as of March 31, 2023 were as follows:
Operating Leases
Fiscal years:(In millions)
Remaining 2023$130 
2024157 
2025116 
2026106 
202793 
Thereafter155 
Total$757 
Less: present value discount(77)
Lease liability$680 

Operating lease amounts include minimum lease payments under our non-cancelable operating leases primarily for office and data center facilities. The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases.

In the three months ended March 31, 2023 and 2022, we incurred asset impairment charges of $39 million and $16 million, respectively, within restructuring and other charges on our condensed consolidated statements of income (loss). The impairments included a reduction to our ROU lease assets in the amount of $21 million and $10 million, respectively, which was attributed to certain leased space we are no longer utilizing for our business operations, a portion of which is being subleased.

As of March 31, 2023, we entered into additional operating leases primarily for real estate, which will commence in the second quarter of 2023 or later, with minimum lease payments aggregating to $13 million and lease terms ranging from four to six years.
v3.23.1
OTHER FINANCIAL STATEMENT DETAILS
 3 Months Ended
Mar. 31, 2023
Other Income and Expenses [Abstract]  
OTHER FINANCIAL STATEMENT DETAILS OTHER FINANCIAL STATEMENT DETAILS
CRYPTO ASSET SAFEGUARDING LIABILITY AND CORRESPONDING SAFEGUARDING ASSET

We allow our customers in certain markets to buy, hold, sell, receive, and send certain cryptocurrencies as well as use the proceeds from sales of cryptocurrencies to pay for purchases at checkout. These cryptocurrencies consist of Bitcoin, Ethereum, Bitcoin Cash, and Litecoin (collectively, “our customers’ crypto assets”). We engage third parties, which are licensed trust companies, to provide certain custodial services, including holding our customers’ cryptographic key information, securing our customers’ crypto assets, and protecting them from loss or theft, including indemnification against certain types of losses such as theft. Our third-party custodian holds the crypto assets in a custodial account in PayPal’s name for the benefit of PayPal’s customers. We maintain the internal recordkeeping of our customers’ crypto assets, including the amount and type of crypto asset owned by each of our customers in that custodial account. As of March 31, 2023, we utilize one third-party custodian; as such, there is concentration risk in the event the custodian is not able to perform in accordance with our agreement.

Due to the unique risks associated with cryptocurrencies, including technological, legal, and regulatory risks, we recognize a crypto asset safeguarding liability to reflect our obligation to safeguard the crypto assets held for the benefit of our customers, which is recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets. We also recognize a corresponding safeguarding asset which is recorded in prepaid expenses and other current assets on our condensed consolidated balance sheets. The crypto asset safeguarding liability and corresponding safeguarding asset are measured and recorded at fair value on a recurring basis using prices available in the market we determine to be the principal market at the balance sheet date. The corresponding safeguarding asset may be adjusted for loss events, as applicable. As of March 31, 2023, the Company has not incurred any safeguarding loss events, and therefore, the crypto asset safeguarding liability and corresponding safeguarding asset were recorded at the same value. The following table summarizes the significant crypto assets we hold for the benefit of our customers and the crypto asset safeguarding liability and corresponding safeguarding asset as of March 31, 2023 and December 31, 2022:

March 31,
2023		December 31, 2022
(In millions)
Bitcoin$499 $291 
Ethereum362 250 
Other 82 63 
Crypto asset safeguarding liability$943 $604 
Crypto asset safeguarding asset$943 $604 

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2023:
Unrealized Gains (Losses) on Cash Flow Hedges
Unrealized Gains (Losses) on Investments
Foreign Currency
Translation Adjustment (“CTA”)
Net Investment Hedges CTA Gains (Losses)
Estimated Tax (Expense) BenefitTotal
(In millions)
Beginning balance $111 $(591)$(575)$(1)$128 $(928)
Other comprehensive income (loss) before reclassifications(35)150 (20)27 (41)81 
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) (“AOCI”)76 (25)— — — 51 
Net current period other comprehensive income (loss) (111)175 (20)27 (41)30 
Ending balance $— $(416)$(595)$26 $87 $(898)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2022:
Unrealized Gains (Losses) on Cash Flow Hedges
Unrealized Gains (Losses) on Investments
Foreign CTA
Net Investment Hedges CTA Gains (Losses)
Estimated Tax (Expense) BenefitTotal
(In millions)
Beginning balance $199 $(87)$(270)$24 $(2)$(136)
Other comprehensive income (loss) before reclassifications44 (293)(95)21 62 (261)
Less: Amount of gain reclassified from AOCI47 — — — — 47 
Net current period other comprehensive income (loss) (3)(293)(95)21 62 (308)
Ending balance $196 $(380)$(365)$45 $60 $(444)

The following table provides details about reclassifications out of AOCI for the periods presented below:
Details about AOCI Components 
Amount of Gains (Losses) Reclassified from AOCI
Affected Line Item in the Statements of Income (Loss)
Three Months Ended March 31,
20232022
(In millions)
Gains on cash flow hedges—foreign currency exchange contracts
$76 $47 Net revenues
Losses on investments(23)— Net revenues
Losses on investments(2)— Other income (expense), net
51 47 Income before income taxes
— — Income tax expense
Total reclassifications for the period$51 $47 Net income (loss)

OTHER INCOME (EXPENSE), NET

The following table reconciles the components of other income (expense), net for the periods presented below:
 Three Months Ended March 31,
 20232022
(In millions)
Interest income$108 $15 
Interest expense(87)(59)
Net gains (losses) on strategic investments48 14 
Other6 (52)
Other income (expense), net$75 $(82)
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2023 and December 31, 2022:
 March 31,
2023		December 31,
2022
(In millions)
Funds receivable and customer accounts:
Cash and cash equivalents$10,580 $11,363 
Time deposits100 95 
Available-for-sale debt securities18,181 17,349 
Funds receivable6,415 7,550 
Total funds receivable and customer accounts$35,276 $36,357 
Short-term investments:
Time deposits$478 $482 
Available-for-sale debt securities3,068 2,593 
Restricted cash13 17 
Total short-term investments$3,559 $3,092 
Long-term investments:
Time deposits$65 $55 
Available-for-sale debt securities2,347 2,817 
Strategic investments2,220 2,146 
Total long-term investments$4,632 $5,018 

As of March 31, 2023 and December 31, 2022, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows:
 
March 31, 2023(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$9,665 $2 $(175)$9,492 
Foreign government and agency securities1,189 — (26)1,163 
Corporate debt securities1,556 — (63)1,493 
Asset-backed securities1,389 — (16)1,373 
Municipal securities486 1 (2)485 
Commercial paper3,679 1 (6)3,674 
Short-term investments:
U.S. government and agency securities814 — (2)812 
Foreign government and agency securities817 — (12)805 
Corporate debt securities1,006 — (23)983 
Asset-backed securities406 — (7)399 
Commercial paper69 — — 69 
Long-term investments:
U.S. government and agency securities493 — (30)463 
Foreign government and agency securities222 — (11)211 
Corporate debt securities601 — (33)568 
Asset-backed securities1,119 — (14)1,105 
Total available-for-sale debt securities(2)
$23,511 $4 $(420)$23,095 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
 
December 31, 2022(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$8,736 $— $(252)$8,484 
Foreign government and agency securities1,479 — (44)1,435 
Corporate debt securities1,637 — (82)1,555 
Asset-backed securities1,324 — (26)1,298 
Municipal securities410 — (3)407 
Commercial paper3,702 1 (14)3,689 
Short-term investments:
U.S. government and agency securities815 — (3)812 
Foreign government and agency securities435 — (11)424 
Corporate debt securities641 — (14)627 
Asset-backed securities415 — (9)406 
Commercial paper324 — — 324 
Long-term investments:
U.S. government and agency securities493 — (36)457 
Foreign government and agency securities386 — (22)364 
Corporate debt securities987 — (58)929 
Asset-backed securities1,085 — (18)1,067 
Total available-for-sale debt securities(2)
$22,869 $1 $(592)$22,278 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”

Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $80 million and $65 million at March 31, 2023 and December 31, 2022, respectively, and were included in other current assets on our condensed consolidated balance sheets.
As of March 31, 2023 and December 31, 2022, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:
 
March 31, 2023(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$3,471 $(37)$3,972 $(138)$7,443 $(175)
Foreign government and agency securities200 (5)876 (21)1,076 (26)
Corporate debt securities— — 1,442 (63)1,442 (63)
Asset-backed securities751 (7)486 (9)1,237 (16)
Municipal securities332 (2)— — 332 (2)
Commercial paper3,042 (6)— — 3,042 (6)
Short-term investments:
U.S. government and agency securities143 — 74 (2)217 (2)
Foreign government and agency securities50 — 514 (12)564 (12)
Corporate debt securities29 — 779 (23)808 (23)
Asset-backed securities139 (2)178 (5)317 (7)
Commercial paper69 — — — 69 — 
Long-term investments:
U.S. government and agency securities— — 463 (30)463 (30)
Foreign government and agency securities32 (1)179 (10)211 (11)
Corporate debt securities— — 559 (33)559 (33)
Asset-backed securities651 (5)371 (9)1,022 (14)
Total available-for-sale debt securities$8,909 $(65)$9,893 $(355)$18,802 $(420)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
 
December 31, 2022(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$3,730 $(89)$4,246 $(163)$7,976 $(252)
Foreign government and agency securities410 (11)997 (34)1,407 (45)
Corporate debt securities9 (1)1,545 (81)1,554 (82)
Asset-backed securities773 (11)508 (14)1,281 (25)
Municipal securities264 (3)50 — 314 (3)
Commercial paper3,079 (14)— — 3,079 (14)
Short-term investments:
U.S. government and agency securities345 — 73 (3)418 (3)
Foreign government and agency securities61 — 362 (11)423 (11)
Corporate debt securities97 (2)465 (12)562 (14)
Asset-backed securities175 (2)217 (7)392 (9)
Commercial paper224 — — — 224 — 
Long-term investments:
U.S. government and agency securities— — 457 (36)457 (36)
Foreign government and agency securities31 (2)333 (20)364 (22)
Corporate debt securities85 (6)834 (52)919 (58)
Asset-backed securities872 (9)195 (9)1,067 (18)
Total available-for-sale debt securities$10,155 $(150)$10,282 $(442)$20,437 $(592)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. We will continue to monitor the performance of the investment portfolio and assess whether impairment due to expected credit losses has occurred. During the three months ended March 31, 2023, we received $1.1 billion in proceeds from the sale of available-for-sale debt securities incurring gross realized losses of $25 million, which were determined using the specific identification method.
Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:
 March 31, 2023
Amortized CostFair Value
(In millions)
One year or less $13,117 $12,977 
After one year through five years8,115 7,862 
After five years through ten years2,205 2,183 
After ten years74 73 
Total$23,511 $23,095 

STRATEGIC INVESTMENTS

Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income (loss). Marketable equity securities totaled $398 million and $323 million as of March 31, 2023 and December 31, 2022, respectively.

Our non-marketable equity securities are recorded in long-term investments on our condensed consolidated balance sheets. As of March 31, 2023 and December 31, 2022, we had non-marketable equity securities of $142 million and $136 million, respectively, where we have the ability to exercise significant influence, but not control, over the investee. We account for these equity securities using the equity method of accounting. The remaining non-marketable equity securities do not have a readily determinable fair value and we measure these equity investments at cost minus impairment, if any, and adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income (loss). The carrying value of our non-marketable equity securities totaled $1.8 billion for both March 31, 2023 and December 31, 2022.

Measurement Alternative adjustments

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
 20232022
(In millions)
Carrying amount, beginning of period$1,687 $1,268 
Adjustments related to non-marketable equity securities:
Net additions(1)
16 4 
Gross unrealized gains22 197 
Gross unrealized losses and impairments(45)— 
Carrying amount, end of period$1,680 $1,469 
(1) Net additions include purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies.
The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative, held at March 31, 2023 and December 31, 2022, respectively:
March 31,
2023		December 31,
2022
(In millions)
Cumulative gross unrealized gains $1,159 $1,137 
Cumulative gross unrealized losses and impairments$(173)$(131)

Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method

The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2023 and 2022, respectively:
 Three Months Ended March 31,
 20232022
(In millions)
Net unrealized gains (losses)$52 $(36)
v3.23.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
FINANCIAL ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

March 31, 2023
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
(In millions)
Assets:   
Cash and cash equivalents(1)
$153 $— $153 
Short-term investments(2):
U.S. government and agency securities812 — 812 
Foreign government and agency securities805 — 805 
Corporate debt securities983 — 983 
Asset-backed securities399 — 399 
Commercial paper69 — 69 
Total short-term investments3,068 — 3,068 
Funds receivable and customer accounts(3):
U.S. government and agency securities9,493 — 9,493 
Foreign government and agency securities1,532 — 1,532 
Corporate debt securities1,624 — 1,624 
Asset-backed securities1,373 — 1,373 
Municipal securities485 — 485 
Commercial paper3,674 — 3,674 
Total funds receivable and customer accounts18,181 — 18,181 
Derivatives156 — 156 
Crypto asset safeguarding asset943 — 943 
Long-term investments(2),(4):
U.S. government and agency securities463 — 463 
Foreign government and agency securities211 — 211 
Corporate debt securities568 — 568 
Asset-backed securities1,105 — 1,105 
Marketable equity securities398 398 — 
Total long-term investments2,745 398 2,347 
Total financial assets$25,246 $398 $24,848 
Liabilities:
Derivatives$267 $— $267 
Crypto asset safeguarding liability943 — 943 
Total financial liabilities$1,210 $— $1,210 
(1) Excludes cash of $6.9 billion not measured and recorded at fair value.
(2) Excludes restricted cash of $13 million and time deposits of $543 million not measured and recorded at fair value.
(3) Excludes cash, time deposits, and funds receivable of $17.1 billion underlying funds receivable and customer accounts not measured and recorded at fair value.
(4) Excludes non-marketable equity securities of $1.8 billion measured using the Measurement Alternative or equity method accounting.

December 31, 2022
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
(In millions)
Assets:   
Cash and cash equivalents(1)
$932 $— $932 
Short-term investments(2):
U.S. government and agency securities812 — 812 
Foreign government and agency securities424 — 424 
Corporate debt securities627 — 627 
Asset-backed securities406 — 406 
Commercial paper324 — 324 
Total short-term investments2,593 — 2,593 
Funds receivable and customer accounts(3):
Cash and cash equivalents192 — 192 
U.S. government and agency securities8,484 — 8,484 
Foreign government and agency securities1,777 — 1,777 
Corporate debt securities1,694 — 1,694 
Asset-backed securities1,298 — 1,298 
Municipal securities407 — 407 
Commercial paper3,689 — 3,689 
Total funds receivable and customer accounts17,541 — 17,541 
Derivatives244 — 244 
Crypto asset safeguarding asset604 — 604 
Long-term investments(2), (4):
U.S. government and agency securities457 — 457 
Foreign government and agency securities364 — 364 
Corporate debt securities929 — 929 
Asset-backed securities1,067 — 1,067 
Marketable equity securities323 323 — 
Total long-term investments3,140 323 2,817 
Total financial assets$25,054 $323 $24,731 
Liabilities:
Derivatives$298 $— $298 
Crypto asset safeguarding liability604 — 604 
Total financial liabilities$902 $— $902 
(1) Excludes cash of $6.8 billion not measured and recorded at fair value.
(2) Excludes restricted cash of $17 million and time deposits of $537 million not measured and recorded at fair value.
(3) Excludes cash, time deposits, and funds receivable of $18.8 billion underlying funds receivable and customer accounts not measured and recorded at fair value.
(4) Excludes non-marketable equity securities of $1.8 billion measured using the Measurement Alternative or equity method accounting.

Our marketable equity securities are valued using quoted prices for identical assets in active markets (Level 1). There are no active markets for our crypto asset safeguarding liability or the corresponding safeguarding asset. Accordingly, we have valued the asset and liability using quoted prices on the active exchange that has been identified as the principal market for the underlying crypto assets (Level 2). All other financial assets and liabilities are valued using quoted prices for identical instruments in less active markets, readily available pricing sources for comparable instruments, or models using market observable inputs (Level 2).
A majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as currency rates, interest rate yield curves, option volatility, and equity prices. Our derivative instruments are primarily short-term in nature, generally one month to one year in duration.

As of March 31, 2023 and December 31, 2022, we did not have any assets or liabilities requiring measurement at fair value on a recurring basis with significant unobservable inputs that would require a high level of judgment to determine fair value (Level 3).

We elect to account for available-for-sale debt securities denominated in currencies other than the functional currency of our subsidiaries under the fair value option. Election of the fair value option allows us to recognize any gains and losses from fair value changes on such investments in other income (expense), net on the condensed consolidated statements of income (loss) to significantly reduce the accounting asymmetry that would otherwise arise when recognizing the corresponding foreign exchange gains and losses relating to customer liabilities. The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of March 31, 2023 and December 31, 2022:
March 31,
2023		December 31,
2022
(In millions)
Funds receivable and customer accounts$501 $481 

The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31,
 20232022
(In millions)
Funds receivable and customer accounts$7 $(34)

ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS

The following tables summarize our assets held as of March 31, 2023 and December 31, 2022 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2023 and the year ended December 31, 2022, respectively:
March 31,
2023
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Non-marketable equity securities measured using the Measurement Alternative(1)
$138 $100 $38 
Other assets(2)
47 47 — 
Total$185 $147 $38 
(1) Excludes non-marketable equity securities of $1.5 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2023.
(2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the three months ended March 31, 2023. See “Note 6—Leases” for additional information.
December 31, 2022
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Non-marketable equity investments measured using the Measurement Alternative(1)
$1,122 $724 $398 
Other assets(2)
165 165 — 
Total$1,287 $889 $398 
(1) Excludes non-marketable equity securities of $565 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2022.
(2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the year ended December 31, 2022. See “Note 6—Leases” for additional information.

We measure the non-marketable equity securities accounted for under the Measurement Alternative at cost minus impairment, if any, adjusted for observable price changes in orderly transactions for an identical or similar investment in the same issuer. Non-marketable equity securities that have been remeasured during the period based on observable price changes are classified within Level 2 in the fair value hierarchy because we estimate the fair value based on valuation methods which only include significant inputs that are observable, such as the observable transaction price at the transaction date. The fair value of non-marketable equity securities are classified within Level 3 when we estimate fair value using significant unobservable inputs such as when we remeasure due to impairment and use discount rates, forecasted cash flows, and market data of comparable companies, among others.

We evaluate ROU assets related to leases for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of an ROU asset may not be recoverable. Impairment losses on ROU lease assets related to office operating leases are calculated initially using estimated rental income per square foot derived from observable market data, and the impaired asset is classified within Level 2 in the fair value hierarchy.

FINANCIAL ASSETS AND LIABILITIES NOT MEASURED AND RECORDED AT FAIR VALUE
Our financial instruments, including cash, restricted cash, time deposits, loans and interest receivable, net, certain customer accounts, and long-term debt related to borrowings on our credit facilities, are carried at amortized cost, which approximates their fair value. Our notes receivable had a carrying value of approximately $444 million and fair value of approximately $351 million as of March 31, 2023. Our notes receivable had a carrying value of approximately $441 million and fair value of approximately $396 million as of December 31, 2022. Our term debt (including current portion) in the form of fixed rate notes had a carrying value of approximately $10.3 billion and fair value of approximately $9.5 billion for both March 31, 2023 and December 31, 2022. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, time deposits, certain customer accounts, and term debt (including current portion) would be classified as Level 2; and the remaining financial instruments would be classified as Level 3 in the fair value hierarchy.
v3.23.1
DERIVATIVE INSTRUMENTS
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
SUMMARY OF DERIVATIVE INSTRUMENTS

Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. Our derivatives expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the arrangement. We seek to mitigate such risk by limiting our counterparties to, and by spreading the risk across, major financial institutions and by entering into collateral security arrangements. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We do not use any derivative instruments for trading or speculative purposes.
Cash flow hedges

We have significant international revenues and costs denominated in foreign currencies, which subjects us to foreign currency exchange risk. We have a foreign currency exposure management program in which we designate certain foreign currency exchange contracts, generally with maturities of 12 months or less, to reduce the volatility of cash flows primarily related to forecasted revenues denominated in foreign currencies. The objective of these foreign currency exchange contracts is to help mitigate the risk that the U.S. dollar-equivalent cash flows are adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. These derivative instruments are designated as cash flow hedges and accordingly, the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into revenue in the same period the forecasted transaction affects earnings. We evaluate the effectiveness of our foreign currency exchange contracts on a quarterly basis by comparing the critical terms of the derivative instruments with the critical terms of the forecasted cash flows of the hedged item; if the critical terms are the same, we conclude the hedge will be perfectly effective. We do not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. We report cash flows arising from derivative instruments consistent with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Accordingly, the cash flows associated with derivatives designated as cash flow hedges are classified in cash flows from operating activities on our condensed consolidated statements of cash flows.

As of March 31, 2023, we estimated that net derivative gains related to our cash flow hedges included in AOCI, which are expected to be reclassified into earnings within the next 12 months, were de minimis. During the three months ended March 31, 2023 and 2022, we did not discontinue any cash flow hedges because it was probable that the original forecasted transaction would not occur and as such, did not reclassify any gains or losses to earnings prior to the occurrence of the hedged transaction. If we elect to discontinue our cash flow hedges and it is probable that the original forecasted transaction will occur, we continue to report the derivative’s gain or loss in AOCI until the forecasted transaction affects earnings, at which point we also reclassify it into earnings. Gains and losses on derivatives held after we discontinue our cash flow hedges and on derivative instruments that are not designated as cash flow hedges are recorded in the same financial statement line item to which the derivative relates.

Net investment hedges

We use forward foreign currency exchange contracts to reduce the foreign currency exchange risk related to our investment in certain foreign subsidiaries. These derivatives are designated as net investment hedges and accordingly, the gains and losses on the portion of the derivatives included in the assessment of hedge effectiveness is recorded in AOCI as part of foreign currency translation. We exclude forward points from the assessment of hedge effectiveness and recognize them in other income (expense), net on a straight-line basis over the life of the hedge. The accumulated gains and losses associated with these instruments will remain in AOCI until the foreign subsidiaries are sold or substantially liquidated, at which point they will be reclassified into earnings. The cash flows associated with derivatives designated as a net investment hedge are classified in cash flows from investing activities on our condensed consolidated statements of cash flows.

We have not reclassified any gains or losses related to net investment hedges from AOCI into earnings during any of the periods presented.

Foreign currency exchange contracts not designated as hedging instruments

We have a foreign currency exposure management program in which we use foreign currency exchange contracts to offset the foreign currency exchange risk of our assets and liabilities denominated in currencies other than the functional currency of our subsidiaries. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on our assets and liabilities. The gains and losses due to remeasurement of certain foreign currency denominated monetary assets and liabilities are recorded in other income (expense), net, which are offset by the gains and losses on these foreign currency exchange contracts. The cash flows associated with our non-designated derivatives used to hedge foreign currency denominated monetary assets and liabilities are classified in cash flows from operating activities on our condensed consolidated statements of cash flows.
FAIR VALUE OF DERIVATIVE CONTRACTS

The fair value of our outstanding derivative instruments as of March 31, 2023 and December 31, 2022 was as follows:

 Balance Sheet LocationMarch 31,
2023		December 31,
2022
(In millions)
Derivative Assets:
Foreign currency exchange contracts designated as hedging instrumentsOther current assets$90 $167 
Foreign currency exchange contracts designated as hedging instrumentsOther assets (non-current)19 15 
Foreign currency exchange contracts not designated as hedging instrumentsOther current assets47 62 
Total derivative assets$156 $244 
Derivative Liabilities:
Foreign currency exchange contracts designated as hedging instrumentsOther current liabilities$78 $68 
Foreign currency exchange contracts designated as hedging instrumentsOther long-term liabilities111 133 
Foreign currency exchange contracts not designated as hedging instrumentsOther current liabilities78 97 
Total derivative liabilities$267 $298 

MASTER NETTING AGREEMENTS - RIGHTS OF SET-OFF

Under master netting agreements with certain counterparties to our foreign currency exchange contracts, subject to applicable requirements, we are allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our condensed consolidated balance sheets. Rights of set-off associated with our foreign currency exchange contracts represented a potential offset to both assets and liabilities of $62 million as of March 31, 2023 and $70 million as of December 31, 2022.

We have entered into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The following table provides the collateral posted and received:

 March 31,
2023		December 31,
2022
(In millions)
Cash collateral posted(1)
$46 $24 
Cash collateral received(2)
$74 $203 
(1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets.
(2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets.
EFFECT OF DERIVATIVE CONTRACTS ON CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:
Three Months Ended March 31,
 20232022
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$7,040 $75 $6,483 $(82)
Gains on derivatives in cash flow hedging relationship:
Amount of gains on foreign currency exchange contracts reclassified from AOCI76 — 47 — 
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness
— 30 — 9 
Losses on derivatives not designated as hedging instruments:
Amount of losses on foreign currency exchange contracts — (75)— (39)
Total gains (losses)$76 $(45)$47 $(30)

The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income (loss):
Three Months Ended March 31,
 20232022
(In millions)
Unrealized (losses) gains on foreign exchange contracts designated as cash flow hedges$(35)$44 
Unrealized gains on foreign exchange contracts designated as net investment hedges27 21 
Total unrealized (losses) gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)$(8)$65 

NOTIONAL AMOUNTS OF DERIVATIVE CONTRACTS

Derivative transactions are measured in terms of the notional amount; however, this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of foreign currency exchange payments under these contracts is determined. The following table provides the notional amounts of our outstanding derivatives:
March 31,
2023		December 31,
2022
(In millions)
Foreign exchange contracts designated as hedging instruments$7,118 $7,149 
Foreign exchange contracts not designated as hedging instruments10,496 11,840 
Total$17,614 $18,989 
v3.23.1
LOANS AND INTEREST RECEIVABLE
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
LOANS AND INTEREST RECEIVABLE LOANS AND INTEREST RECEIVABLE
CONSUMER RECEIVABLES

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. The majority of the installment loans allow consumers to pay for purchases over periods of 12 months or less. Beginning in June 2022, we have purchased receivables related to interest-bearing installment loans extended to U.S. consumers by an independent chartered financial institution (“partner institution”) and are responsible for servicing functions related to that portfolio. During the three months ended March 31, 2023, we purchased approximately $268 million in consumer receivables. As of March 31, 2023 and December 31, 2022, the outstanding balance of consumer receivables, which consisted of revolving and installment loans and interest receivable, was $6.1 billion and $5.9 billion, respectively, net of the participation interest sold to the partner institution of $23 million and $17 million, respectively.

We closely monitor the credit quality of our consumer receivables to evaluate and manage our related exposure to credit risk. Credit risk management begins with initial underwriting and continues through the full repayment of a loan. To assess a consumer who requests a loan, we use, among other indicators, internally developed risk models using detailed information from external sources, such as credit bureaus where available, and internal data, including the consumer’s prior repayment history with our credit products where available. We use delinquency status and trends to assist in making (or, for interest-bearing installment loans in the U.S., to assist the partner institution in making) new and ongoing credit decisions, to adjust our models, to plan our collection practices and strategies, and in determining our allowance for consumer loans and interest receivable.

The following tables present the delinquency status and gross charge-offs of consumer loans and interest receivable by year of origination. 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, 2023
(In millions, except percentages)
Revolving Loans
Amortized Cost Basis 		Installment Loans Amortized Cost Basis
20232022202120202019TotalPercent
Consumer loans and interest receivable:
Current$1,892 $2,948 $947 $82 $— $— $5,869 96.7%
30 - 59 Days26 18 19 1 — — 64 1.1%
60 - 89 Days 16 2 30 1 — — 49 0.8%
90 - 179 Days 33 — 49 3 — — 85 1.4%
Total(1)
$1,967 $2,968 $1,045 $87 $— $— $6,067 100%
Gross charge-offs for the three months ended March 31, 2023
$31 $— $45 $2 $— $— $78 
(1) Excludes receivables from other consumer credit products of $11 million at March 31, 2023.
December 31, 2022
(In millions, except percentages)
Revolving Loans
Amortized Cost Basis 		Installment Loans Amortized Cost Basis
20222021202020192018TotalPercent
Consumer loans and interest receivable:
Current$1,850 $3,726 $123 $— $— $— $5,699 97.1%
30 - 59 Days23 26 2 — — — 51 0.9%
60 - 89 Days 15 20 2 — — — 37 0.6%
90 - 179 Days 34 47 4 — — — 85 1.4%
Total(1)
$1,922 $3,819 $131 $— $— $— $5,872 100%
(1) Excludes receivables from other consumer credit products of $11 million at December 31, 2022.


The following table summarizes the activity in the allowance for consumer loans and interest receivable for the three months ended March 31, 2023 and 2022:
March 31, 2023March 31, 2022
Consumer Loans ReceivableInterest Receivable
Total Allowance(1)
Consumer Loans ReceivableInterest Receivable
Total Allowance(1)
(In millions)
Beginning balance$322 $25 $347 $243 $43 $286 
Provisions95 6 101 43 6 49 
Charge-offs(71)(7)(78)(42)(9)(51)
Recoveries7 — 7 3 — 3 
Other(2)
4 — 4 (6)(1)(7)
Ending balance$357 $24 $381 $241 $39 $280 
(1) Excludes allowances from other consumer credit products of nil and $3 million at March 31, 2023 and 2022, respectively.
(2) Includes amounts related to foreign currency remeasurement.

The provision for the three months ended March 31, 2023 was primarily attributable to growth in the consumer receivable portfolio. Qualitative adjustments were made to account for limitations in our current expected credit loss models due to uncertainty with respect to macroeconomic conditions and the financial health of our borrowers.

The increase in charge-offs for the three months ended March 31, 2023 compared to the same period in the prior year was due to the expansion of our installment credit products.

The provision for current expected credit losses relating to our consumer receivable portfolio is recognized in transaction and credit losses on our condensed consolidated statements of income (loss). The provision for interest receivable for interest earned on our consumer receivable portfolio is recognized in revenues from other value added services as a reduction to revenue. Loans receivable continue to accrue interest until they are charged off.

We charge off consumer receivable balances in the month in which a customer’s balance becomes 180 days past the billing date or contractual repayment date, except for the U.S. consumer interest-bearing installment receivables, which are charged off 120 days past the contractual repayment date. Bankrupt accounts are charged off within 60 days after receipt of notification of bankruptcy. Charge-offs are recorded as a reduction to our allowance for loans and interest receivable and subsequent recoveries, if any, are recorded as an increase to the allowance for loans and interest receivable.
MERCHANT RECEIVABLES

We offer access to merchant finance products for certain small and medium-sized businesses through our PayPal Working Capital (“PPWC”) and PayPal Business Loan (“PPBL”) products, 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 servicing functions related to that portfolio. During the three months ended March 31, 2023 and 2022, we purchased approximately $666 million and $605 million in merchant receivables, respectively. As of both March 31, 2023 and December 31, 2022, the total outstanding balance in our pool of merchant loans, advances, and interest and fees receivable was $2.1 billion, net of the participation interest sold to the partner institution of $91 million and $97 million, respectively.

Through our PPWC product, merchants can borrow a certain percentage of their annual payment volume processed by PayPal and are charged a fixed fee for the loan or advance based on the overall credit assessment of the merchant. Loans and advances are repaid through a fixed percentage of the merchant’s future payment volume that PayPal processes. Through our PPBL product, we provide merchants access to short-term business financing for a fixed fee based on an evaluation of the applying business as well as the business owner. PPBL repayments are collected through periodic payments until the balance has been satisfied.

The interest or fee is fixed at the time the loan or advance is extended and is recognized as deferred revenue in accrued expenses and other current liabilities on our condensed consolidated balance sheets. The fixed interest or fee is amortized into revenues from other value added services based on the amount repaid over the repayment period. We estimate the repayment period for PPWC based on the merchant’s payment processing history with PayPal. For PPWC, there is a general requirement that at least 10% of the original amount of the loan or advance plus the fixed fee must be repaid every 90 days. We calculate the repayment rate of the merchant’s future payment volume so that repayment of the loan or advance and fixed fee is expected to generally occur within 9 to 12 months from the date of the loan or advance. On a monthly basis, we recalculate the repayment period based on the repayment activity on the receivable. As such, actual repayment periods are dependent on actual merchant payment processing volumes. For PPBL, we receive fixed periodic payments over the contractual term of the loan, which generally ranges from 3 to 12 months.

We actively monitor receivables with repayment periods greater than the original expected or contractual repayment period, as well as the credit quality of our merchant loans and advances that we extend or purchase, so that we can evaluate, quantify, and manage our credit risk exposure. To assess a merchant seeking a loan or advance, we use, among other indicators, risk models developed internally which utilize information obtained from multiple internal and external data sources to predict the likelihood of timely and satisfactory repayment by the merchant of the loan or advance amount and the related interest or fee. Primary drivers of the models include the merchant’s annual payment volume, payment processing history with PayPal, prior repayment history with PayPal’s credit products where available, information sourced from consumer and business credit bureau reports, and other information obtained during the application process. We use delinquency status and trends to assist in making (or, in the U.S., to assist the partner institution in making) ongoing credit decisions, to adjust our internal models, to plan our collection strategies, and in determining our allowance for these loans, advances, and interest and fees receivable.
Merchant receivables delinquency and allowance

The following tables present the delinquency status and gross charge-offs of merchant loans, advances, and interest 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, 2023
(In millions, except percentages)
2023
2022202120202019TotalPercent
Merchant loans, advances, and interest and fees receivable:
Current$788 $965 $12 $47 $34 $1,846 89.8%
30 - 59 Days8 52 4 3 3 70 3.4%
60 - 89 Days 1 39 3 2 2 47 2.3%
90 - 179 Days — 74 5 3 3 85 4.1%
180+ Days— 2 2 1 2 7 0.4%
Total$797 $1,132 $26 $56 $44 $2,055 100%
Gross charge-offs for the three months ended March 31, 2023
$— $43 $6 $6 $2 $57 


December 31, 2022
(In millions, except percentages)
2022
2021202020192018TotalPercent
Merchant loans, advances, and interest and fees receivable:
Current$1,826 $20 $57 $42 $2 $1,947 90.7%
30 - 59 Days63 7 3 4 — 77 3.6%
60 - 89 Days 34 4 4 2 — 44 2.0%
90 - 179 Days 55 9 3 3 — 70 3.3%
180+ Days1 2 2 3 — 8 0.4%
Total$1,979 $42 $69 $54 $2 $2,146 100%

The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the three months ended March 31, 2023 and 2022:
March 31, 2023March 31, 2022
Merchant Loans and AdvancesInterest and Fees ReceivableTotal AllowanceMerchant Loans and AdvancesInterest and Fees ReceivableTotal Allowance
(In millions)
Beginning balance$230 $18 $248 $192 $9 $201 
Provisions49 10 59 5 1 6 
Charge-offs(51)(6)(57)(21)(2)(23)
Recoveries7 — 7 9 — 9 
Ending balance$235 $22 $257 $185 $8 $193 

The provision for the three months ended March 31, 2023 was primarily attributable to originations in the merchant portfolio and a deterioration in credit quality of loans outstanding. Qualitative adjustments were made to account for uncertainty around the financial health of our borrowers including the effectiveness of loan modification programs made available to merchants in previous years.
The increase in the charge-offs for the three months ended March 31, 2023 compared to the same period in the prior year was due to the expansion of acceptable risk parameters in 2022, which resulted in a deterioration of the overall credit quality of loans outstanding.

For merchant loans and advances, the determination of delinquency is based on the current expected or contractual repayment period of the loan or advance and fixed interest or fee payment as compared to the original expected or contractual repayment period. We charge off the receivables outstanding under our PPBL product when the repayments are 180 days past the contractual repayment date. We charge off the receivables outstanding under our PPWC product when the repayments are 180 days past our expectation of repayments and the merchant has not made a payment in the last 60 days, or when the repayments are 360 days past due regardless of whether the merchant has made a payment in the last 60 days. Bankrupt accounts are charged off within 60 days after receipt of notification of bankruptcy. The provision for credit losses on merchant loans and advances is recognized in transaction and credit losses on our condensed consolidated statements of income (loss), and the provision for interest and fees receivable is recognized as a reduction of deferred revenue in accrued expenses and other current liabilities on our condensed consolidated balance sheets. Charge-offs are recorded as a reduction to our allowance for loans and interest receivable and subsequent recoveries, if any, are recorded as an increase to the allowance for loans and interest receivable.
v3.23.1
DEBT
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
FIXED RATE NOTES

In May 2022, May 2020, and September 2019, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $3.0 billion, $4.0 billion and $5.0 billion, respectively. The notes issued from the May 2022, May 2020, and September 2019 debt issuances are senior unsecured obligations and are collectively referred to as the “Notes.”

As of both March 31, 2023 and December 31, 2022, we had an outstanding aggregate principal amount of $10.4 billion related to the Notes. The following table summarizes the Notes:
MaturitiesEffective Interest RateMarch 31,
2023		December 31,
2022
(in millions)
September 2019 debt issuance:
Fixed-rate 2.400% notes
10/1/20242.52%1,250 1,250 
Fixed-rate 2.650% notes
10/1/20262.78%1,250 1,250 
Fixed-rate 2.850% notes
10/1/20292.96%1,500 1,500 
May 2020 debt issuance:
Fixed-rate 1.350% notes
6/1/20231.55%418 418 
Fixed-rate 1.650% notes
6/1/20251.78%1,000 1,000 
Fixed-rate 2.300% notes
6/1/20302.39%1,000 1,000 
Fixed-rate 3.250% notes
6/1/20503.33%1,000 1,000 
May 2022 debt issuance:
Fixed-rate 3.900% notes
6/1/20274.06%500 500 
Fixed-rate 4.400% notes
6/1/20324.53%1,000 1,000 
Fixed-rate 5.050% notes
6/1/20525.14%1,000 1,000 
Fixed-rate 5.250% notes
6/1/20625.34%500 500 
Total term debt$10,418 $10,418 
Unamortized premium (discount) and issuance costs, net(72)(74)
Less: current portion of term debt(1)
(418)(418)
Total carrying amount of term debt$9,928 $9,926 
(1) The current portion of term debt is included within accrued expenses and other current liabilities on our condensed consolidated balance sheets.
The effective interest rates for the Notes include interest on the Notes, amortization of debt issuance costs, and amortization of the debt discount. The interest expense recorded for the Notes, including amortization of the debt discount, debt issuance costs, and debt extinguishment net gains, was $83 million and $56 million for the three months ended March 31, 2023 and 2022, respectively.

CREDIT FACILITIES

Paidy credit agreement

In February 2022, we entered into a credit agreement (the “Paidy Credit Agreement”) with Paidy as co-borrower, which provided for an unsecured revolving credit facility of ¥60.0 billion, which was modified in September 2022 to increase the borrowing capacity by ¥30.0 billion for a total borrowing capacity of ¥90.0 billion (approximately $678 million as of March 31, 2023). As of March 31, 2023 and December 31, 2022, ¥73.3 billion (approximately $553 million) and ¥64.3 billion (approximately $491 million), respectively, were outstanding under the Paidy Credit Agreement, which was recorded in long-term debt on our condensed consolidated balance sheet. At March 31, 2023, ¥16.7 billion (approximately $125 million) of borrowing capacity was available for the purposes permitted by the Paidy Credit Agreement, subject to customary conditions to borrowing. During the three months ended March 31, 2023 and 2022, the total interest expense and fees we recorded related to the Paidy Credit Agreement were de minimis.
FUTURE PRINCIPAL PAYMENTS

As of March 31, 2023, the future principal payments associated with our term debt were as follows (in millions):
Remaining 2023$418 
20241,250 
20251,000 
20261,250 
2027500 
Thereafter6,000 
Total$10,418 

Other than as provided above, there were no significant changes to the information disclosed in our 2022 Form 10-K.
v3.23.1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
COMMITMENTS

As of March 31, 2023 and December 31, 2022, approximately $5.3 billion and $4.9 billion, respectively, of unused credit was available to PayPal Credit account holders in the U.K. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all our PayPal Credit account holders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination based on, among other things, account usage and customer creditworthiness. 
LITIGATION AND REGULATORY MATTERS

Overview

We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in early stages and may seek an indeterminate amount of damages or penalties or may require us to change or adopt certain business practices. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements at that time. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a legal proceeding, we have disclosed that fact. In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 13, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies.

Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable and reasonably estimable were not material as of March 31, 2023. Except as otherwise noted for the proceedings described in this Note 13, we have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material. Determining legal reserves or possible losses from such matters involves judgment and may not reflect the full range of uncertainties and unpredictable outcomes. We may be exposed to losses in excess of the amount recorded, and such amounts could be material. If any of our estimates and assumptions change or prove to have been incorrect, it could have a material adverse effect on our business, financial position, results of operations, or cash flows.

Regulatory proceedings

PayPal Australia Pty Limited (“PPAU”) self-reported a potential violation to the Australian Transaction Reports and Analysis Centre (“AUSTRAC”) on May 22, 2019. This self-reported matter relates to PPAU incorrectly filing required international funds transfer instructions over a period of time under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”). On September 23, 2019, PPAU received a notice from AUSTRAC requiring that PPAU appoint an external auditor (a partner of a firm which is not our independent auditor) to review certain aspects of PPAU’s compliance with its obligations under the AML/CTF Act. The external auditor was appointed on November 1, 2019.

AUSTRAC had notified PPAU that its enforcement team was investigating the matters reported upon by the external auditor in its August 31, 2020 final report. As a resolution of this investigation, on March 17, 2023, AUSTRAC’s Chief Executive Officer accepted an enforceable undertaking from PPAU in relation to the self-reported issues.

The enforceable undertaking does not include a monetary penalty. The entry into and compliance with the enforceable undertaking will not require a change to our business practices in a manner that could result in a material loss, require significant management time, result in the diversion of significant operational resources, or otherwise adversely affect our business.

PPAU is required to deliver an Assurance Action Plan (“AAP”) under the enforceable undertaking to demonstrate that the governance and oversight arrangements following the remedial work completed by PPAU are sustainable and appropriate. The enforceable undertaking requires PPAU to appoint an external auditor by June 30, 2023 to assess the appropriateness, sustainability and efficacy of the actions to be taken under the AAP. The external auditor’s final report to PPAU and AUSTRAC is due on or before April 16, 2024. The successful completion of the enforceable undertaking is subject to AUSTRAC’s ultimate review and decision based on the external auditor’s final report. We cannot predict the outcome of the external auditor’s final report or AUSTRAC’s decision.

Any failure to comply with the enforceable undertaking could result in penalties or require us to change our business practices.
We have received Civil Investigative Demands (“CIDs”) from the Consumer Financial Protection Bureau (“CFPB”) related to Venmo’s unauthorized funds transfers and collections processes, and related matters, including treatment of consumers who request payments but accidentally designate an unintended recipient. The CIDs request the production of documents and answers to written questions. We are cooperating with the CFPB in connection with these CIDs.

We are responding to subpoenas and requests for information received from the U.S. Securities and Exchange Commission (“SEC”) Enforcement Division relating to whether the interchange rates paid to the bank that issues debit cards bearing our licensed brands were consistent with Regulation II of the Board of Governors of the Federal Reserve System, and to the reporting of marketing fees earned from the PayPal-branded card programs (the “SEC Debit Card Program Matter”). We are cooperating with the SEC Enforcement Division in connection with this investigation.

In February 2022, we received a CID from the Federal Trade Commission (“FTC”) related to PayPal’s practices relating to commercial customers that submit charges on behalf of other merchants or sellers, and related activities. The CID requests the production of documents and answers to written questions. We are cooperating with the FTC in connection with this CID.

In January 2023, we received notice of an administrative proceeding and a related request for information from the German Federal Cartel Office (“FCO”) related to terms in PayPal (Europe) S.à.r.l. et Cie, S.C.A.’s contractual terms with merchants in Germany prohibiting surcharging and requiring parity presentation of PayPal relative to other payment methods. We are cooperating with the FCO in connection with this proceeding.

Legal proceedings

On August 20, 2021, a putative securities class action captioned Kang v. PayPal Holdings, Inc., et al., Case No. 21-cv-06468, was filed in the U.S. District Court for the Northern District of California (the “Kang Securities Action”). The Kang Securities Action asserts claims relating to our disclosure of a CID from the CFPB related to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services and the SEC Debit Card Program Matter in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021. The Kang Securities Action purports to be brought on behalf of purchasers of the Company’s stock between February 9, 2017 and July 28, 2021 (the “Class Period”), and asserts claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company, its Chief Executive Officer, and former Chief Financial Officer. The complaint alleges that certain public statements made by the Company during the Class Period were rendered materially false and misleading (which, allegedly, caused the Company’s stock to trade at artificially inflated prices) by the defendants’ failure to disclose that, among other things, PayPal’s business practices with respect to PayPal Credit and regarding interchange rates paid to its bank partner related to its bank-issued co-branded debit cards were non-compliant with applicable laws and/or regulations. The Kang Securities Action seeks unspecified compensatory damages on behalf of the putative class members. On November 2, 2021, the court appointed a Lead Plaintiff, and on January 25, 2022, the Lead Plaintiff filed an amended complaint. The amended complaint alleges a class period between April 27, 2016 and July 28, 2021 (the “Amended Class Period”), and in addition to the Company, its Chief Executive Officer, and former Chief Financial Officer, also names other Company executives as defendants. The amended complaint alleges that various statements made by the defendants during the Amended Class Period were rendered materially false and misleading, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by PayPal’s alleged violations of the 2015 consent order with the CFPB, federal consumer financial laws, and Regulation II. On August 8, 2022, the court granted Defendants’ motion to dismiss the amended complaint in its entirety, and granted Lead Plaintiff’s request for leave to file a further amended complaint. On September 16, 2022, Lead Plaintiff filed a Second Amended Complaint (the “SAC”), which asserts the same claims against the same Defendants based on the same alleged conduct as the prior complaint. Defendants moved to dismiss the SAC on November 3, 2022. On April 27, 2023, the Court granted Defendants’ motion and dismissed the SAC in its entirety with prejudice. Plaintiffs’ deadline to file a notice of appeal is May 30, 2023.
On December 16, 2021 and January 19, 2022, two related putative shareholder derivative actions captioned Pang v. Daniel Schulman, et al., Case No. 21-cv-09720, and Lalor v. Daniel Schulman, et al., Case No. 22-cv-00370, respectively, were filed in the U.S. District Court for the Northern District of California (the “California Derivative Actions”), purportedly on behalf of the Company. On August 2, 2022, a related putative shareholder derivative action captioned Jefferson v. Daniel Schulman, et al., No. 2022-0684, was filed in the Court of Chancery for the State of Delaware (the “Delaware Derivative Action,” and collectively with the California Derivative Actions, the “Derivative Actions”), purportedly on behalf of the Company. The Derivative Actions are based on the same alleged facts and circumstances as the Kang Securities Action, and name certain of our officers, including our Chief Executive Officer and former Chief Financial Officer, and members of our Board of Directors, as defendants. The Derivative Actions allege claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and violations of the Securities Exchange Act of 1934, and seek to recover damages on behalf of the Company. On February 1, 2022, the court entered an order consolidating the two California Derivative Actions and staying them until all motions to dismiss in the Kang Securities Action are resolved.

On October 4, 2022, a putative securities class action captioned Defined Benefit Plan of the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and Annuity Fund v. PayPal Holdings, Inc., et al., Case No. 22-cv-5864, was filed in the U.S. District Court for the District of New Jersey. On January 11, 2023, the Court appointed Caisse de dépôt et placement du Québec as lead plaintiff and renamed the action In re PayPal Holdings, Inc. Securities Litigation (“PPH Securities Action”). On March 13, 2023, the lead plaintiff filed an amended and consolidated complaint. The PPH Securities Action asserts claims relating to our public statements with respect to net new active accounts (“NNA”) results and guidance, and the detection of illegitimately created accounts. The PPH Securities Action purports to be brought on behalf of purchasers of the Company’s stock between February 3, 2021 and February 1, 2022 (the “Class Period”), and asserts claims for alleged violations of Sections 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against the Company, as well as its Chief Executive Officer, Chief Strategy, Growth and Data Officer, and former Chief Financial Officer (collectively, the “Individual Defendants,” and together with the Company, “Defendants”), and for alleged violations of Sections 20(a) and 20A of the Exchange Act against the Individual Defendants. The complaint alleges that certain public statements made by Defendants during the Class Period were rendered materially false and misleading (which, allegedly, caused the Company’s stock to trade at artificially inflated prices) by the Defendants’ failure to disclose that, among other things, the Company’s incentive campaigns were susceptible to fraud and led to the creation of illegitimate accounts, which allegedly affected the Company’s NNA results and guidance. The PPH Securities Action seeks unspecified compensatory damages on behalf of the putative class members.

On November 2, 2022, a putative shareholder derivative action captioned Shah v. Daniel Schulman, et al., Case No. 22-cv-1445, was filed in the U.S. District Court for the District of Delaware (the “Shah Action”), purportedly on behalf of the Company. On April 4, 2023, a putative shareholder derivative action captioned Nelson v. Daniel Schulman, et. al., Case No. 23-cv-01913, was filed in the U.S. District Court for the District of New Jersey (the “Nelson Action”) purportedly on behalf of the Company. The Shah and Nelson Actions are based on the same alleged facts and circumstances as the PPH Securities Action, and name certain of our officers, including our Chief Executive Officer and former Chief Financial Officer, and members of our Board of Directors, as defendants. The Shah and Nelson Actions allege claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment, waste of corporate assets, gross mismanagement and violations of the Securities Exchange Act of 1934, and seek to recover damages on behalf of the Company. The Shah and Nelson Actions have been stayed pending further developments in the PPH Securities Action.

General matters

Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our business as our products and services continue to expand in scope and complexity. Such claims may be brought directly or indirectly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our acquisitions, particularly in cases where we are introducing new products or services in connection with such acquisitions. We have in the past been forced to litigate such claims, and we believe that additional lawsuits alleging such claims will be filed against us. Intellectual property claims, whether meritorious or not, are time-consuming and costly to defend and resolve, could require expensive changes in our methods of doing business, or could require us to enter into costly royalty or licensing agreements on unfavorable terms or make substantial payments to settle claims or to satisfy damages awarded by courts.
From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our customers (individually or as class actions) or regulators alleging, among other things, improper disclosure of our prices, rules, or policies, that our practices, prices, rules, policies, or customer/user agreements violate applicable law, or that we have acted unfairly or not acted in conformity with such prices, rules, policies, or agreements. In addition to these types of disputes and regulatory inquiries, our operations are also subject to regulatory and legal review and challenges that may reflect the increasing global regulatory focus to which the payments industry is subject and, when taken as a whole with other regulatory and legislative action, such actions could result in the imposition of costly new compliance burdens on our business and customers and may lead to increased costs and decreased transaction volume and revenue. Further, the number and significance of these disputes and inquiries are increasing as our business has grown and expanded in scale and scope, including the number of active accounts and payments transactions on our platform, the range and increasing complexity of the products and services that we offer, and our geographical operations. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, settlement payments, damage awards (including statutory damages for certain causes of action in certain jurisdictions), fines, penalties, injunctive relief, or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources, or otherwise harm our business.

INDEMNIFICATION PROVISIONS

Our agreements with eBay governing our separation from eBay provide for specific indemnity and liability obligations for both eBay and us. Disputes between eBay and us have arisen and others may arise in the future, and an adverse outcome in such matters could materially and adversely impact our business, results of operations, and financial condition. In addition, the indemnity rights we have against eBay under the agreements may not be sufficient to protect us, and our indemnity obligations to eBay may be significant.

In the ordinary course of business, we include indemnification provisions in certain of our agreements with parties with whom we have commercial relationships. Under these contracts, we generally indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by any third party with respect to our domain names, trademarks, logos, and other branding elements to the extent that such marks are related to the subject agreement. We have provided an indemnity for other types of third-party claims, which may include indemnities related to intellectual property rights, confidentiality, willful misconduct, data privacy obligations, and certain breach of contract claims, among others. We have also provided an indemnity to our payments processors in the event of card association fines against the processor arising out of conduct by us or our customers. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular situation.

PayPal has participated in the U.S. Government’s Paycheck Protection Program administered by the U.S. Small Business Administration. Loans made under this program are funded by an independent chartered financial institution that we partner with. We receive a fee for providing services in connection with these loans and retain operational and audit risk related to those activities. We have agreed, under certain circumstances, to indemnify the chartered financial institution and its assignee of a portion of these loans in connection with the services provided for loans made under this program.

To date, no significant costs have been incurred, either individually or collectively, in connection with our indemnification provisions.

OFF-BALANCE SHEET ARRANGEMENTS

As of March 31, 2023 and December 31, 2022, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures, or capital resources.
PROTECTION PROGRAMS

We provide merchants and consumers with protection programs for certain transactions completed on our payments platform. These programs are intended to protect both merchants and consumers from loss primarily due to fraud and counterparty performance. Our Purchase Protection Program provides protection to consumers for qualifying purchases by reimbursing the consumer for the full amount of the purchase if a purchased item does not arrive or does not match the seller’s description. Our Seller Protection Programs provide protection to merchants against claims that a transaction was not authorized by the buyer or claims that an item was not received by covering the seller for the full amount of the payment on eligible sales. These protection programs are considered assurance-type warranties under applicable accounting standards for which we estimate and record associated costs in transaction and credit losses during the period the payment transaction is completed.

At March 31, 2023 and December 31, 2022, the allowance for transaction losses was $58 million and $66 million, respectively. The allowance for negative customer balances was $260 million and $212 million at March 31, 2023 and December 31, 2022, respectively. The following table shows changes in the allowance for transaction losses and negative customer balances related to our protection programs for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31,
20232022
(in millions)
Beginning balance$278 $355 
Provision300 322 
Realized losses(265)(390)
Recoveries5 32 
Ending balance$318 $319 
v3.23.1
STOCK REPURCHASE PROGRAMS
 3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
STOCK REPURCHASE PROGRAMS STOCK REPURCHASE PROGRAMS
During the three months ended March 31, 2023, we repurchased approximately 19 million shares of our common stock for approximately $1.4 billion at an average price of $76.60, excluding excise tax. These shares were purchased in the open market under our stock repurchase programs authorized in July 2018 and June 2022. As of March 31, 2023, a total of approximately $14.4 billion remained available for future repurchases of our common stock under our June 2022 stock repurchase program.

The Inflation Reduction Act of 2022 imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Beginning in the first quarter of 2023, we reflected the applicable excise tax in treasury stock on our condensed consolidated balance sheet.
v3.23.1
STOCK-BASED PLANS
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED PLANS STOCK-BASED PLANS
STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense for our equity incentive plans are measured based on their estimated fair value at the time of grant, and recognized over the award’s vesting period.
The impact on our results of operations of recording stock-based compensation expense under our equity incentive plans for the three months ended March 31, 2023 and 2022 was as follows:
Three Months Ended March 31,
 20232022
(In millions)
Customer support and operations$72 $73 
Sales and marketing43 45 
Technology and development148 136 
General and administrative94 188 
Total stock-based compensation expense$357 $442 
Capitalized stock-based compensation expense$11 $16 
v3.23.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESOur effective tax rate for the three months ended March 31, 2023 and 2022 was 26% and 19%, respectively. The difference between our effective tax rate and the U.S. federal statutory rate of 21% in both periods was primarily the result of foreign income taxed at different rates and discrete tax adjustments, including tax expense related to stock-based compensation.
v3.23.1
RESTRUCTURING AND OTHER CHARGES
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES
During the first quarter of 2023, management initiated a global workforce reduction intended to focus resources on core strategic priorities, and improve our cost structure and operating efficiency. The associated restructuring charges during the three months ended March 31, 2023 were $117 million. We primarily incurred employee severance and benefits costs, substantially all of which have been accrued for as of March 31, 2023.

The following table summarizes the restructuring reserve activity during the three months ended March 31, 2023:
 Employee Severance and Benefits and Other Associated Costs
(In millions)
Accrued liability as of January 1, 2023$24 
Charges 117 
Payments(45)
Accrued liability as of March 31, 2023
$96 

During the first quarter of 2022, management initiated a strategic reduction of the existing global workforce intended to streamline and optimize our global operations to enhance operating efficiency. This effort focused on reducing redundant operations and simplifying our organizational structure. The associated restructuring charges during the three months ended March 31, 2022 were $20 million. We primarily incurred employee severance and benefits costs, as well as associated consulting costs under this strategic reduction. The strategic actions associated with this plan were substantially completed by the fourth quarter of 2022.

Additionally, we are continuing to review our facility needs due to our new and evolving work models. In the three months ended March 31, 2023 and 2022, we incurred asset impairment charges of $39 million and $16 million, respectively, due to exiting of certain leased properties, which resulted in a reduction of ROU lease assets and related leasehold improvements. See “Note 6—Leases” for additional information. We also incurred a loss of $8 million upon designation of an owned property as held for sale in the three months ended March 31, 2023.
v3.23.1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation
Basis of presentation and principles of consolidation

The accompanying condensed consolidated financial statements include the financial statements of PayPal and our wholly- and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Investments in entities where we have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investee’s results of operations is included in other income (expense), net on our condensed consolidated statements of income (loss). Investments in entities where we do not have the ability to exercise significant influence over the investee are accounted for at fair value or cost minus impairment, if any, adjusted for changes resulting from observable price changes, which are included in other income (expense), net on our condensed consolidated statements of income (loss). Our investment balance is included in long-term investments on our condensed consolidated balance sheets.

We determine at the inception of each investment, and re-evaluate if certain events occur, whether an entity in which we have made an investment is considered a variable interest entity (“VIE”). If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation. As of March 31, 2023 and December 31, 2022, no VIEs qualified for consolidation as the structures of these entities do not provide us with the ability to direct activities that would significantly impact their economic performance. As of March 31, 2023 and December 31, 2022, the carrying value of our investments in nonconsolidated VIEs was $135 million and $128 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets. Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $233 million and $232 million as of March 31, 2023 and December 31, 2022, respectively.

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 10, 2023.

In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented. Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three months ended March 31, 2023.
Reclassifications
Reclassifications

Beginning with the fourth quarter of 2022, we reclassified certain cash flows related to our collateral security arrangements for derivative instruments from cash flows from operating activities to cash flows from investing activities and cash flows from financing activities within the condensed consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current period presentation.

The current period presentation classifies all changes in collateral posted and collateral received related to derivative instruments on our condensed consolidated statements of cash flows as cash flows from investing activities and cash flows from financing activities, respectively. We believe that the current period presentation provides a more meaningful representation of the nature of the cash flows and allows for greater transparency as the cash flows related to the derivatives impact operating cash flows upon settlement exclusive of the offsetting cash flows from collateral.

The following table presents the effects of the changes on the presentation of these cash flows to the previously reported condensed consolidated statements of cash flows:
Three Months Ended March 31, 2022
(In millions)
As Previously Reported (1)
AdjustmentsReclassified
Net cash provided by (used in):
Operating activities(2)
$1,242 $(25)$1,217 
Investing activities(3)
(751)(1)(752)
Financing activities(4)
(695)26 (669)
Effect of exchange rates on cash, cash equivalents, and restricted cash18 — 18 
Net decrease in cash, cash equivalents, and restricted cash$(186)$— $(186)
(1) As reported in our Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on April 28, 2022.
(2) Financial statement line impacted in operating activities was “Other assets and liabilities.”
(3) Financial statement line impacted in investing activities was “Collateral posted related to derivative instruments, net.”
(4) Financial statement line impacted in financing activities was “Collateral received related to derivative instruments, net.”
Principles of consolidation
Basis of presentation and principles of consolidation

The accompanying condensed consolidated financial statements include the financial statements of PayPal and our wholly- and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Investments in entities where we have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investee’s results of operations is included in other income (expense), net on our condensed consolidated statements of income (loss). Investments in entities where we do not have the ability to exercise significant influence over the investee are accounted for at fair value or cost minus impairment, if any, adjusted for changes resulting from observable price changes, which are included in other income (expense), net on our condensed consolidated statements of income (loss). Our investment balance is included in long-term investments on our condensed consolidated balance sheets.

We determine at the inception of each investment, and re-evaluate if certain events occur, whether an entity in which we have made an investment is considered a variable interest entity (“VIE”). If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation. As of March 31, 2023 and December 31, 2022, no VIEs qualified for consolidation as the structures of these entities do not provide us with the ability to direct activities that would significantly impact their economic performance. As of March 31, 2023 and December 31, 2022, the carrying value of our investments in nonconsolidated VIEs was $135 million and $128 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets. Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $233 million and $232 million as of March 31, 2023 and December 31, 2022, respectively.

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 10, 2023.

In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented. Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three months ended March 31, 2023.
Use of estimates
Use of estimates

The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and credit losses, income taxes, loss contingencies, revenue recognition, the valuation of goodwill and intangible assets, and the valuation of strategic investments. We base our estimates on historical experience and various other assumptions which we believe to be reasonable under the circumstances. Actual results could materially differ from these estimates.
Recently adopted accounting guidance
Recently adopted accounting guidance

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures (Topic 326): Financial Instruments – Credit Losses. This amended guidance eliminated the accounting designation of a loan modification as a TDR and the measurement guidance for TDRs. The amendments also enhanced existing disclosure requirements and introduced new requirements related to modifications of receivables due from borrowers experiencing financial difficulty. Additionally, this guidance required entities to disclose gross charge-offs by year of origination for financing receivables, such as loans and interest receivable. The amended guidance was effective for fiscal years beginning after December 15, 2022 and was required to be applied prospectively, except for the recognition and measurement of TDRs, which could be applied on a modified retrospective basis. We adopted this guidance effective January 1, 2023 on a prospective basis. Our financial statements were not materially impacted upon adoption. For additional information, see “Note 11—Loans and Interest Receivable.”
There are other new accounting pronouncements issued by the FASB that we have adopted or will adopt, as applicable. We do not believe any of these accounting pronouncements have had, or will have, a material impact on our condensed consolidated financial statements or disclosures.
v3.23.1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of reclassifications
The following table presents the effects of the changes on the presentation of these cash flows to the previously reported condensed consolidated statements of cash flows:
Three Months Ended March 31, 2022
(In millions)
As Previously Reported (1)
AdjustmentsReclassified
Net cash provided by (used in):
Operating activities(2)
$1,242 $(25)$1,217 
Investing activities(3)
(751)(1)(752)
Financing activities(4)
(695)26 (669)
Effect of exchange rates on cash, cash equivalents, and restricted cash18 — 18 
Net decrease in cash, cash equivalents, and restricted cash$(186)$— $(186)
(1) As reported in our Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on April 28, 2022.
(2) Financial statement line impacted in operating activities was “Other assets and liabilities.”
(3) Financial statement line impacted in investing activities was “Collateral posted related to derivative instruments, net.”
(4) Financial statement line impacted in financing activities was “Collateral received related to derivative instruments, net.”
v3.23.1
REVENUE (Tables)
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregation of revenue
The following table presents our revenue disaggregated by primary geographical market and category:
 Three Months Ended March 31,
 20232022
(In millions)
Primary geographical markets
U.S.$4,147 $3,671 
Other countries(1)
2,893 2,812 
Total net revenues(2)
$7,040 $6,483 
Revenue category
Transaction revenues$6,364 $5,998 
Revenues from other value added services676 485 
Total net revenues(2)
$7,040 $6,483 
(1) No single country included in the other countries category generated more than 10% of total net revenues.
(2) Total net revenues include $451 million and $187 million for the three months ended March 31, 2023 and 2022, respectively, which do not represent revenues recognized in the scope of Accounting Standards Codification Topic 606, Revenue from contracts with customers. Such revenues relate to interest and fees earned on loans and interest receivable, as well as hedging gains or losses, and interest earned on certain assets underlying customer balances.
v3.23.1
NET INCOME (LOSS) PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Schedule of earnings per share, basic and diluted
The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated:
 Three Months Ended March 31,
 20232022
(In millions, except per share amounts)
Numerator:
Net income (loss)$795 $509 
Denominator:
Weighted average shares of common stock - basic1,129 1,163 
Dilutive effect of equity incentive awards5 9 
Weighted average shares of common stock - diluted1,134 1,172 
Net income (loss) per share:
Basic$0.70 $0.44 
Diluted$0.70 $0.43 
Common stock equivalents excluded from income (loss) per diluted share because their effect would have been anti-dilutive or potentially dilutive14 6 
v3.23.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill balances and adjustments
The following table presents goodwill balances and adjustments to those balances during the three months ended March 31, 2023:
December 31,
2022		Goodwill Acquired Adjustments March 31,
2023
 (In millions)
Total goodwill$11,209 $— $(14)$11,195 
Components of identifiable intangible assets
The components of identifiable intangible assets were as follows:
 March 31, 2023December 31, 2022
 Gross Carrying Amount
Accumulated Amortization 
Net Carrying AmountWeighted Average Useful Life (Years)
Gross Carrying Amount
Accumulated Amortization 
Net Carrying AmountWeighted Average Useful Life (Years)
 (In millions, except years)
Intangible assets:        
Customer lists and user base$1,596 $(1,062)$534 7$1,664 $(1,092)$572 7
Marketing related394 (343)51 5395 (339)56 5
Developed technology1,079 (1,037)42 31,099 (1,048)51 3
All other439 (336)103 7438 (329)109 7
Intangible assets, net$3,508 $(2,778)$730 $3,596 $(2,808)$788  
Expected future intangible asset amortization
Expected future intangible asset amortization as of March 31, 2023 was as follows (in millions):

Fiscal years:
Remaining 2023$160 
2024195 
2025159 
2026102 
202764 
Thereafter50 
Total$730 
v3.23.1
LEASES (Tables)
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Schedule of components of lease expense, supplemental cash and noncash and balance sheet information
The components of lease expense were as follows:
Three Months Ended March 31,
20232022
(In millions)
Lease expense
Operating lease expense$41 $42 
Sublease income(2)(2)
Lease expense, net$39 $40 
Supplemental cash flow information related to leases was as follows:
Three Months Ended March 31,
20232022
(In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$43 $41 
Right-of-use (“ROU”) lease assets obtained in exchange for new operating lease liabilities$(1)$83 
Other non-cash ROU lease asset activity$(21)$(10)

Supplemental balance sheet information related to leases was as follows:
March 31,
2023		December 31,
2022
(In millions, except weighted-average figures)
Operating ROU lease assets$512 $574 
Current operating lease liabilities151 151 
Operating lease liabilities529 569 
Total operating lease liabilities$680 $720 
Weighted-average remaining lease term—operating leases
5.7 years5.7 years
Weighted-average discount rate—operating leases
4 %3 %
Schedule of future minimum operating lease payments
Future minimum lease payments for our operating leases as of March 31, 2023 were as follows:
Operating Leases
Fiscal years:(In millions)
Remaining 2023$130 
2024157 
2025116 
2026106 
202793 
Thereafter155 
Total$757 
Less: present value discount(77)
Lease liability$680 
v3.23.1
OTHER FINANCIAL STATEMENT DETAILS (Tables)
 3 Months Ended
Mar. 31, 2023
Other Income and Expenses [Abstract]  
Schedule of Crypto Asset Safeguarding Asset and Liability The following table summarizes the significant crypto assets we hold for the benefit of our customers and the crypto asset safeguarding liability and corresponding safeguarding asset as of March 31, 2023 and December 31, 2022:
March 31,
2023		December 31, 2022
(In millions)
Bitcoin$499 $291 
Ethereum362 250 
Other 82 63 
Crypto asset safeguarding liability$943 $604 
Crypto asset safeguarding asset$943 $604 
Schedule of accumulated other comprehensive income (loss)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2023:
Unrealized Gains (Losses) on Cash Flow Hedges
Unrealized Gains (Losses) on Investments
Foreign Currency
Translation Adjustment (“CTA”)
Net Investment Hedges CTA Gains (Losses)
Estimated Tax (Expense) BenefitTotal
(In millions)
Beginning balance $111 $(591)$(575)$(1)$128 $(928)
Other comprehensive income (loss) before reclassifications(35)150 (20)27 (41)81 
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) (“AOCI”)76 (25)— — — 51 
Net current period other comprehensive income (loss) (111)175 (20)27 (41)30 
Ending balance $— $(416)$(595)$26 $87 $(898)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2022:
Unrealized Gains (Losses) on Cash Flow Hedges
Unrealized Gains (Losses) on Investments
Foreign CTA
Net Investment Hedges CTA Gains (Losses)
Estimated Tax (Expense) BenefitTotal
(In millions)
Beginning balance $199 $(87)$(270)$24 $(2)$(136)
Other comprehensive income (loss) before reclassifications44 (293)(95)21 62 (261)
Less: Amount of gain reclassified from AOCI47 — — — — 47 
Net current period other comprehensive income (loss) (3)(293)(95)21 62 (308)
Ending balance $196 $(380)$(365)$45 $60 $(444)
Schedule of reclassifications out of AOCI
The following table provides details about reclassifications out of AOCI for the periods presented below:
Details about AOCI Components 
Amount of Gains (Losses) Reclassified from AOCI
Affected Line Item in the Statements of Income (Loss)
Three Months Ended March 31,
20232022
(In millions)
Gains on cash flow hedges—foreign currency exchange contracts
$76 $47 Net revenues
Losses on investments(23)— Net revenues
Losses on investments(2)— Other income (expense), net
51 47 Income before income taxes
— — Income tax expense
Total reclassifications for the period$51 $47 Net income (loss)
Schedule of other income (expense), net
The following table reconciles the components of other income (expense), net for the periods presented below:
 Three Months Ended March 31,
 20232022
(In millions)
Interest income$108 $15 
Interest expense(87)(59)
Net gains (losses) on strategic investments48 14 
Other6 (52)
Other income (expense), net$75 $(82)
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of assets underlying funds receivable and customer accounts, short-term and long-term investments
The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2023 and December 31, 2022:
 March 31,
2023		December 31,
2022
(In millions)
Funds receivable and customer accounts:
Cash and cash equivalents$10,580 $11,363 
Time deposits100 95 
Available-for-sale debt securities18,181 17,349 
Funds receivable6,415 7,550 
Total funds receivable and customer accounts$35,276 $36,357 
Short-term investments:
Time deposits$478 $482 
Available-for-sale debt securities3,068 2,593 
Restricted cash13 17 
Total short-term investments$3,559 $3,092 
Long-term investments:
Time deposits$65 $55 
Available-for-sale debt securities2,347 2,817 
Strategic investments2,220 2,146 
Total long-term investments$4,632 $5,018 
Schedule of estimated fair value of available-for-sale debt securities
As of March 31, 2023 and December 31, 2022, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows:
 
March 31, 2023(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$9,665 $2 $(175)$9,492 
Foreign government and agency securities1,189 — (26)1,163 
Corporate debt securities1,556 — (63)1,493 
Asset-backed securities1,389 — (16)1,373 
Municipal securities486 1 (2)485 
Commercial paper3,679 1 (6)3,674 
Short-term investments:
U.S. government and agency securities814 — (2)812 
Foreign government and agency securities817 — (12)805 
Corporate debt securities1,006 — (23)983 
Asset-backed securities406 — (7)399 
Commercial paper69 — — 69 
Long-term investments:
U.S. government and agency securities493 — (30)463 
Foreign government and agency securities222 — (11)211 
Corporate debt securities601 — (33)568 
Asset-backed securities1,119 — (14)1,105 
Total available-for-sale debt securities(2)
$23,511 $4 $(420)$23,095 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
 
December 31, 2022(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$8,736 $— $(252)$8,484 
Foreign government and agency securities1,479 — (44)1,435 
Corporate debt securities1,637 — (82)1,555 
Asset-backed securities1,324 — (26)1,298 
Municipal securities410 — (3)407 
Commercial paper3,702 1 (14)3,689 
Short-term investments:
U.S. government and agency securities815 — (3)812 
Foreign government and agency securities435 — (11)424 
Corporate debt securities641 — (14)627 
Asset-backed securities415 — (9)406 
Commercial paper324 — — 324 
Long-term investments:
U.S. government and agency securities493 — (36)457 
Foreign government and agency securities386 — (22)364 
Corporate debt securities987 — (58)929 
Asset-backed securities1,085 — (18)1,067 
Total available-for-sale debt securities(2)
$22,869 $1 $(592)$22,278 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
Schedule of gross unrealized losses and estimated fair value of available-for-sale debt securities in a continuous loss position
As of March 31, 2023 and December 31, 2022, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:
 
March 31, 2023(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$3,471 $(37)$3,972 $(138)$7,443 $(175)
Foreign government and agency securities200 (5)876 (21)1,076 (26)
Corporate debt securities— — 1,442 (63)1,442 (63)
Asset-backed securities751 (7)486 (9)1,237 (16)
Municipal securities332 (2)— — 332 (2)
Commercial paper3,042 (6)— — 3,042 (6)
Short-term investments:
U.S. government and agency securities143 — 74 (2)217 (2)
Foreign government and agency securities50 — 514 (12)564 (12)
Corporate debt securities29 — 779 (23)808 (23)
Asset-backed securities139 (2)178 (5)317 (7)
Commercial paper69 — — — 69 — 
Long-term investments:
U.S. government and agency securities— — 463 (30)463 (30)
Foreign government and agency securities32 (1)179 (10)211 (11)
Corporate debt securities— — 559 (33)559 (33)
Asset-backed securities651 (5)371 (9)1,022 (14)
Total available-for-sale debt securities$8,909 $(65)$9,893 $(355)$18,802 $(420)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
 
December 31, 2022(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$3,730 $(89)$4,246 $(163)$7,976 $(252)
Foreign government and agency securities410 (11)997 (34)1,407 (45)
Corporate debt securities9 (1)1,545 (81)1,554 (82)
Asset-backed securities773 (11)508 (14)1,281 (25)
Municipal securities264 (3)50 — 314 (3)
Commercial paper3,079 (14)— — 3,079 (14)
Short-term investments:
U.S. government and agency securities345 — 73 (3)418 (3)
Foreign government and agency securities61 — 362 (11)423 (11)
Corporate debt securities97 (2)465 (12)562 (14)
Asset-backed securities175 (2)217 (7)392 (9)
Commercial paper224 — — — 224 — 
Long-term investments:
U.S. government and agency securities— — 457 (36)457 (36)
Foreign government and agency securities31 (2)333 (20)364 (22)
Corporate debt securities85 (6)834 (52)919 (58)
Asset-backed securities872 (9)195 (9)1,067 (18)
Total available-for-sale debt securities$10,155 $(150)$10,282 $(442)$20,437 $(592)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
The estimated fair values of investments classified as available for sale included within funds receivable, customer accounts, short-term investments, and long-term investments by date of contractual maturity
Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:
 March 31, 2023
Amortized CostFair Value
(In millions)
One year or less $13,117 $12,977 
After one year through five years8,115 7,862 
After five years through ten years2,205 2,183 
After ten years74 73 
Total$23,511 $23,095 
Schedule of adjustments to the carrying value of equity investments and summary of cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative
The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
 20232022
(In millions)
Carrying amount, beginning of period$1,687 $1,268 
Adjustments related to non-marketable equity securities:
Net additions(1)
16 4 
Gross unrealized gains22 197 
Gross unrealized losses and impairments(45)— 
Carrying amount, end of period$1,680 $1,469 
(1) Net additions include purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies.
The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative, held at March 31, 2023 and December 31, 2022, respectively:
March 31,
2023		December 31,
2022
(In millions)
Cumulative gross unrealized gains $1,159 $1,137 
Cumulative gross unrealized losses and impairments$(173)$(131)
Schedule of unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method
The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2023 and 2022, respectively:
 Three Months Ended March 31,
 20232022
(In millions)
Net unrealized gains (losses)$52 $(36)
v3.23.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of financial assets and liabilities measured at fair value on a recurring basis
The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

March 31, 2023
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
(In millions)
Assets:   
Cash and cash equivalents(1)
$153 $— $153 
Short-term investments(2):
U.S. government and agency securities812 — 812 
Foreign government and agency securities805 — 805 
Corporate debt securities983 — 983 
Asset-backed securities399 — 399 
Commercial paper69 — 69 
Total short-term investments3,068 — 3,068 
Funds receivable and customer accounts(3):
U.S. government and agency securities9,493 — 9,493 
Foreign government and agency securities1,532 — 1,532 
Corporate debt securities1,624 — 1,624 
Asset-backed securities1,373 — 1,373 
Municipal securities485 — 485 
Commercial paper3,674 — 3,674 
Total funds receivable and customer accounts18,181 — 18,181 
Derivatives156 — 156 
Crypto asset safeguarding asset943 — 943 
Long-term investments(2),(4):
U.S. government and agency securities463 — 463 
Foreign government and agency securities211 — 211 
Corporate debt securities568 — 568 
Asset-backed securities1,105 — 1,105 
Marketable equity securities398 398 — 
Total long-term investments2,745 398 2,347 
Total financial assets$25,246 $398 $24,848 
Liabilities:
Derivatives$267 $— $267 
Crypto asset safeguarding liability943 — 943 
Total financial liabilities$1,210 $— $1,210 
(1) Excludes cash of $6.9 billion not measured and recorded at fair value.
(2) Excludes restricted cash of $13 million and time deposits of $543 million not measured and recorded at fair value.
(3) Excludes cash, time deposits, and funds receivable of $17.1 billion underlying funds receivable and customer accounts not measured and recorded at fair value.
(4) Excludes non-marketable equity securities of $1.8 billion measured using the Measurement Alternative or equity method accounting.

December 31, 2022
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
(In millions)
Assets:   
Cash and cash equivalents(1)
$932 $— $932 
Short-term investments(2):
U.S. government and agency securities812 — 812 
Foreign government and agency securities424 — 424 
Corporate debt securities627 — 627 
Asset-backed securities406 — 406 
Commercial paper324 — 324 
Total short-term investments2,593 — 2,593 
Funds receivable and customer accounts(3):
Cash and cash equivalents192 — 192 
U.S. government and agency securities8,484 — 8,484 
Foreign government and agency securities1,777 — 1,777 
Corporate debt securities1,694 — 1,694 
Asset-backed securities1,298 — 1,298 
Municipal securities407 — 407 
Commercial paper3,689 — 3,689 
Total funds receivable and customer accounts17,541 — 17,541 
Derivatives244 — 244 
Crypto asset safeguarding asset604 — 604 
Long-term investments(2), (4):
U.S. government and agency securities457 — 457 
Foreign government and agency securities364 — 364 
Corporate debt securities929 — 929 
Asset-backed securities1,067 — 1,067 
Marketable equity securities323 323 — 
Total long-term investments3,140 323 2,817 
Total financial assets$25,054 $323 $24,731 
Liabilities:
Derivatives$298 $— $298 
Crypto asset safeguarding liability604 — 604 
Total financial liabilities$902 $— $902 
(1) Excludes cash of $6.8 billion not measured and recorded at fair value.
(2) Excludes restricted cash of $17 million and time deposits of $537 million not measured and recorded at fair value.
(3) Excludes cash, time deposits, and funds receivable of $18.8 billion underlying funds receivable and customer accounts not measured and recorded at fair value.
(4) Excludes non-marketable equity securities of $1.8 billion measured using the Measurement Alternative or equity method accounting.
Summary of investments under the fair value option The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of March 31, 2023 and December 31, 2022:
March 31,
2023		December 31,
2022
(In millions)
Funds receivable and customer accounts$501 $481 

The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31,
 20232022
(In millions)
Funds receivable and customer accounts$7 $(34)
Summary of financial assets measured at fair value on a non-recurring basis
The following tables summarize our assets held as of March 31, 2023 and December 31, 2022 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2023 and the year ended December 31, 2022, respectively:
March 31,
2023
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Non-marketable equity securities measured using the Measurement Alternative(1)
$138 $100 $38 
Other assets(2)
47 47 — 
Total$185 $147 $38 
(1) Excludes non-marketable equity securities of $1.5 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2023.
(2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the three months ended March 31, 2023. See “Note 6—Leases” for additional information.
December 31, 2022
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Non-marketable equity investments measured using the Measurement Alternative(1)
$1,122 $724 $398 
Other assets(2)
165 165 — 
Total$1,287 $889 $398 
(1) Excludes non-marketable equity securities of $565 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2022.
(2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the year ended December 31, 2022. See “Note 6—Leases” for additional information.
v3.23.1
DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair value of outstanding derivative instruments
The fair value of our outstanding derivative instruments as of March 31, 2023 and December 31, 2022 was as follows:

 Balance Sheet LocationMarch 31,
2023		December 31,
2022
(In millions)
Derivative Assets:
Foreign currency exchange contracts designated as hedging instrumentsOther current assets$90 $167 
Foreign currency exchange contracts designated as hedging instrumentsOther assets (non-current)19 15 
Foreign currency exchange contracts not designated as hedging instrumentsOther current assets47 62 
Total derivative assets$156 $244 
Derivative Liabilities:
Foreign currency exchange contracts designated as hedging instrumentsOther current liabilities$78 $68 
Foreign currency exchange contracts designated as hedging instrumentsOther long-term liabilities111 133 
Foreign currency exchange contracts not designated as hedging instrumentsOther current liabilities78 97 
Total derivative liabilities$267 $298 
Schedule of offsetting assets The following table provides the collateral posted and received:
 March 31,
2023		December 31,
2022
(In millions)
Cash collateral posted(1)
$46 $24 
Cash collateral received(2)
$74 $203 
(1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets.
(2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets.
Schedule of offsetting liabilities The following table provides the collateral posted and received:
 March 31,
2023		December 31,
2022
(In millions)
Cash collateral posted(1)
$46 $24 
Cash collateral received(2)
$74 $203 
(1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets.
(2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets.
Gains or losses related to derivative instruments designated as hedging instruments
The following table provides the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:
Three Months Ended March 31,
 20232022
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$7,040 $75 $6,483 $(82)
Gains on derivatives in cash flow hedging relationship:
Amount of gains on foreign currency exchange contracts reclassified from AOCI76 — 47 — 
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness
— 30 — 9 
Losses on derivatives not designated as hedging instruments:
Amount of losses on foreign currency exchange contracts — (75)— (39)
Total gains (losses)$76 $(45)$47 $(30)

The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income (loss):
Three Months Ended March 31,
 20232022
(In millions)
Unrealized (losses) gains on foreign exchange contracts designated as cash flow hedges$(35)$44 
Unrealized gains on foreign exchange contracts designated as net investment hedges27 21 
Total unrealized (losses) gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)$(8)$65 
Recognized gains or losses related to derivative instruments not designated as hedging instruments
The following table provides the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:
Three Months Ended March 31,
 20232022
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$7,040 $75 $6,483 $(82)
Gains on derivatives in cash flow hedging relationship:
Amount of gains on foreign currency exchange contracts reclassified from AOCI76 — 47 — 
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness
— 30 — 9 
Losses on derivatives not designated as hedging instruments:
Amount of losses on foreign currency exchange contracts — (75)— (39)
Total gains (losses)$76 $(45)$47 $(30)
Schedule of notional amounts of outstanding derivatives The following table provides the notional amounts of our outstanding derivatives:
March 31,
2023		December 31,
2022
(In millions)
Foreign exchange contracts designated as hedging instruments$7,118 $7,149 
Foreign exchange contracts not designated as hedging instruments10,496 11,840 
Total$17,614 $18,989 
v3.23.1
LOANS AND INTEREST RECEIVABLE (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Delinquency status of the principal amount of loans and interest receivable
The following tables present the delinquency status and gross charge-offs of consumer loans and interest receivable by year of origination. 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, 2023
(In millions, except percentages)
Revolving Loans
Amortized Cost Basis 		Installment Loans Amortized Cost Basis
20232022202120202019TotalPercent
Consumer loans and interest receivable:
Current$1,892 $2,948 $947 $82 $— $— $5,869 96.7%
30 - 59 Days26 18 19 1 — — 64 1.1%
60 - 89 Days 16 2 30 1 — — 49 0.8%
90 - 179 Days 33 — 49 3 — — 85 1.4%
Total(1)
$1,967 $2,968 $1,045 $87 $— $— $6,067 100%
Gross charge-offs for the three months ended March 31, 2023
$31 $— $45 $2 $— $— $78 
(1) Excludes receivables from other consumer credit products of $11 million at March 31, 2023.
December 31, 2022
(In millions, except percentages)
Revolving Loans
Amortized Cost Basis 		Installment Loans Amortized Cost Basis
20222021202020192018TotalPercent
Consumer loans and interest receivable:
Current$1,850 $3,726 $123 $— $— $— $5,699 97.1%
30 - 59 Days23 26 2 — — — 51 0.9%
60 - 89 Days 15 20 2 — — — 37 0.6%
90 - 179 Days 34 47 4 — — — 85 1.4%
Total(1)
$1,922 $3,819 $131 $— $— $— $5,872 100%
(1) Excludes receivables from other consumer credit products of $11 million at December 31, 2022.
The following tables present the delinquency status and gross charge-offs of merchant loans, advances, and interest 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, 2023
(In millions, except percentages)
2023
2022202120202019TotalPercent
Merchant loans, advances, and interest and fees receivable:
Current$788 $965 $12 $47 $34 $1,846 89.8%
30 - 59 Days8 52 4 3 3 70 3.4%
60 - 89 Days 1 39 3 2 2 47 2.3%
90 - 179 Days — 74 5 3 3 85 4.1%
180+ Days— 2 2 1 2 7 0.4%
Total$797 $1,132 $26 $56 $44 $2,055 100%
Gross charge-offs for the three months ended March 31, 2023
$— $43 $6 $6 $2 $57 


December 31, 2022
(In millions, except percentages)
2022
2021202020192018TotalPercent
Merchant loans, advances, and interest and fees receivable:
Current$1,826 $20 $57 $42 $2 $1,947 90.7%
30 - 59 Days63 7 3 4 — 77 3.6%
60 - 89 Days 34 4 4 2 — 44 2.0%
90 - 179 Days 55 9 3 3 — 70 3.3%
180+ Days1 2 2 3 — 8 0.4%
Total$1,979 $42 $69 $54 $2 $2,146 100%
Allowance for loans and interest receivable
The following table summarizes the activity in the allowance for consumer loans and interest receivable for the three months ended March 31, 2023 and 2022:
March 31, 2023March 31, 2022
Consumer Loans ReceivableInterest Receivable
Total Allowance(1)
Consumer Loans ReceivableInterest Receivable
Total Allowance(1)
(In millions)
Beginning balance$322 $25 $347 $243 $43 $286 
Provisions95 6 101 43 6 49 
Charge-offs(71)(7)(78)(42)(9)(51)
Recoveries7 — 7 3 — 3 
Other(2)
4 — 4 (6)(1)(7)
Ending balance$357 $24 $381 $241 $39 $280 
(1) Excludes allowances from other consumer credit products of nil and $3 million at March 31, 2023 and 2022, respectively.
(2) Includes amounts related to foreign currency remeasurement.
The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the three months ended March 31, 2023 and 2022:
March 31, 2023March 31, 2022
Merchant Loans and AdvancesInterest and Fees ReceivableTotal AllowanceMerchant Loans and AdvancesInterest and Fees ReceivableTotal Allowance
(In millions)
Beginning balance$230 $18 $248 $192 $9 $201 
Provisions49 10 59 5 1 6 
Charge-offs(51)(6)(57)(21)(2)(23)
Recoveries7 — 7 9 — 9 
Ending balance$235 $22 $257 $185 $8 $193 
v3.23.1
DEBT (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Schedule of outstanding aggregate principal amount related to the notes The following table summarizes the Notes:
MaturitiesEffective Interest RateMarch 31,
2023		December 31,
2022
(in millions)
September 2019 debt issuance:
Fixed-rate 2.400% notes
10/1/20242.52%1,250 1,250 
Fixed-rate 2.650% notes
10/1/20262.78%1,250 1,250 
Fixed-rate 2.850% notes
10/1/20292.96%1,500 1,500 
May 2020 debt issuance:
Fixed-rate 1.350% notes
6/1/20231.55%418 418 
Fixed-rate 1.650% notes
6/1/20251.78%1,000 1,000 
Fixed-rate 2.300% notes
6/1/20302.39%1,000 1,000 
Fixed-rate 3.250% notes
6/1/20503.33%1,000 1,000 
May 2022 debt issuance:
Fixed-rate 3.900% notes
6/1/20274.06%500 500 
Fixed-rate 4.400% notes
6/1/20324.53%1,000 1,000 
Fixed-rate 5.050% notes
6/1/20525.14%1,000 1,000 
Fixed-rate 5.250% notes
6/1/20625.34%500 500 
Total term debt$10,418 $10,418 
Unamortized premium (discount) and issuance costs, net(72)(74)
Less: current portion of term debt(1)
(418)(418)
Total carrying amount of term debt$9,928 $9,926 
(1) The current portion of term debt is included within accrued expenses and other current liabilities on our condensed consolidated balance sheets.
Schedule of future principal payments associated with long term debt
As of March 31, 2023, the future principal payments associated with our term debt were as follows (in millions):
Remaining 2023$418 
20241,250 
20251,000 
20261,250 
2027500 
Thereafter6,000 
Total$10,418 
v3.23.1
COMMITMENTS AND CONTINGENCIES (Tables)
 3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Allowance for Transaction Losses And Negative Customer Balances The following table shows changes in the allowance for transaction losses and negative customer balances related to our protection programs for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31,
20232022
(in millions)
Beginning balance$278 $355 
Provision300 322 
Realized losses(265)(390)
Recoveries5 32 
Ending balance$318 $319 
v3.23.1
STOCK-BASED PLANS (Tables)
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of stock-based compensation expense
The impact on our results of operations of recording stock-based compensation expense under our equity incentive plans for the three months ended March 31, 2023 and 2022 was as follows:
Three Months Ended March 31,
 20232022
(In millions)
Customer support and operations$72 $73 
Sales and marketing43 45 
Technology and development148 136 
General and administrative94 188 
Total stock-based compensation expense$357 $442 
Capitalized stock-based compensation expense$11 $16 
v3.23.1
RESTRUCTURING AND OTHER CHARGES (Tables)
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Schedule of restructuring reserve activity by type of cost
The following table summarizes the restructuring reserve activity during the three months ended March 31, 2023:
 Employee Severance and Benefits and Other Associated Costs
(In millions)
Accrued liability as of January 1, 2023$24 
Charges 117 
Payments(45)
Accrued liability as of March 31, 2023
$96 
v3.23.1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation and Principles of Consolidation (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Variable Interest Entity [Line Items]    
Long-term investments $ 4,632 $ 5,018
Variable interest entity, reporting entity involvement, maximum loss exposure, amount 233 232
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entity [Line Items]    
Long-term investments $ 135 $ 128
v3.23.1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Reclassification [Line Items]    
Net cash provided by (used in) operating activities $ 1,170 $ 1,217
Net cash provided by (used in) investing activities 34 (752)
Net cash provided by (used in) financing activities (2,662) (669)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (4) 18
Net change in cash, cash equivalents, and restricted cash $ (1,462) (186)
As Previously Reported    
Reclassification [Line Items]    
Net cash provided by (used in) operating activities   1,242
Net cash provided by (used in) investing activities   (751)
Net cash provided by (used in) financing activities   (695)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash   18
Net change in cash, cash equivalents, and restricted cash   (186)
Adjustments    
Reclassification [Line Items]    
Net cash provided by (used in) operating activities   (25)
Net cash provided by (used in) investing activities   (1)
Net cash provided by (used in) financing activities   26
Effect of exchange rate changes on cash, cash equivalents, and restricted cash   0
Net change in cash, cash equivalents, and restricted cash   $ 0
v3.23.1
REVENUE - Additional Information (Details)
 3 Months Ended
Mar. 31, 2023
segment
Revenue from Contract with Customer [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.23.1
REVENUE - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]    
Net revenues $ 7,040 $ 6,483
Transaction revenues    
Disaggregation of Revenue [Line Items]    
Net revenues 6,364 5,998
Revenues from other value added services    
Disaggregation of Revenue [Line Items]    
Net revenues 676 485
Interest and fees earned on loans and interest receivable, as well as hedging gains or losses, and interest earned on certain assets underlying customer balances    
Disaggregation of Revenue [Line Items]    
Net revenues which do not represent revenues recognized in the scope of ASC Topic 606 451 187
U.S.    
Disaggregation of Revenue [Line Items]    
Net revenues 4,147 3,671
Other countries    
Disaggregation of Revenue [Line Items]    
Net revenues $ 2,893 $ 2,812
v3.23.1
NET INCOME (LOSS) PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Numerator:    
Net income (loss), basic $ 795 $ 509
Net income (loss), diluted $ 795 $ 509
Denominator:    
Weighted average shares of common stock - basic (in shares) 1,129 1,163
Dilutive effect of equity incentive awards (in shares) 5 9
Weighted average shares of common stock - diluted (in shares) 1,134 1,172
Net income (loss) per share:    
Basic (in dollars per share) $ 0.70 $ 0.44
Diluted (in dollars per share) $ 0.70 $ 0.43
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive or potentially dilutive (in shares) 14 6
v3.23.1
BUSINESS COMBINATIONS - Additional Information (Details) - business
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]    
Number of businesses acquired or divested 0 0
v3.23.1
GOODWILL AND INTANGIBLE ASSETS - Goodwill Balances and Adjustments (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
Total goodwill  
Beginning balance $ 11,209
Goodwill Acquired 0
Adjustments (14)
Ending balance $ 11,195
v3.23.1
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Amortization expense for intangible assets $ 57 $ 118
Fully amortized intangible assets retired 84  
Customer lists and user base    
Finite-Lived Intangible Assets [Line Items]    
Fully amortized intangible assets retired 65  
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Fully amortized intangible assets retired $ 19  
v3.23.1
GOODWILL AND INTANGIBLE ASSETS - Components of Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 3,508 $ 3,596
Accumulated Amortization  (2,778) (2,808)
Net Carrying Amount 730 788
Customer lists and user base    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1,596 1,664
Accumulated Amortization  (1,062) (1,092)
Net Carrying Amount $ 534 $ 572
Weighted Average Useful Life (Years) 7 years 7 years
Marketing related    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 394 $ 395
Accumulated Amortization  (343) (339)
Net Carrying Amount $ 51 $ 56
Weighted Average Useful Life (Years) 5 years 5 years
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,079 $ 1,099
Accumulated Amortization  (1,037) (1,048)
Net Carrying Amount $ 42 $ 51
Weighted Average Useful Life (Years) 3 years 3 years
All other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 439 $ 438
Accumulated Amortization  (336) (329)
Net Carrying Amount $ 103 $ 109
Weighted Average Useful Life (Years) 7 years 7 years
v3.23.1
GOODWILL AND INTANGIBLE ASSETS - Expected Future Intangible Asset Amortization (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Fiscal years:    
2023 $ 160  
2024 195  
2025 159  
2026 102  
2027 64  
Thereafter 50  
Net Carrying Amount $ 730 $ 788
v3.23.1
LEASES - Schedules of Components of Lease Expense, Supplemental Cash and Noncash And Balance Sheet Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Lease expense      
Operating lease expense $ 41 $ 42  
Sublease income (2) (2)  
Lease expense, net 39 40  
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases 43 41  
Right-of-use (“ROU”) lease assets obtained in exchange for new operating lease liabilities (1) 83  
Other non-cash ROU lease asset activity $ (21) (10)  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets   Other assets
Operating ROU lease assets $ 512 574  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities   Accrued expenses and other current liabilities
Current operating lease liabilities $ 151 151  
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Deferred tax liability and other long-term liabilities   Deferred tax liability and other long-term liabilities
Operating lease liabilities $ 529 569  
Total operating lease liabilities $ 680 $ 720  
Weighted-average remaining lease term—operating leases 5 years 8 months 12 days 5 years 8 months 12 days  
Weighted-average discount rate—operating leases 4.00% 3.00%  
v3.23.1
LEASES - Schedule of Future Minimum Operating Lease Payments (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Mar. 31, 2022
Fiscal years:    
2023 $ 130  
2024 157  
2025 116  
2026 106  
2027 93  
Thereafter 155  
Total 757  
Less: present value discount (77)  
Lease liability $ 680 $ 720
v3.23.1
LEASES - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Lessee, Lease, Description [Line Items]    
Asset impairment charges $ 39 $ 16
Operating lease, impairment charges 21 $ 10
Operating lease, lease not yet commenced, amount $ 13  
Minimum    
Lessee, Lease, Description [Line Items]    
Operating lease, lease not yet commenced, term of contract 4 years  
Maximum    
Lessee, Lease, Description [Line Items]    
Operating lease, lease not yet commenced, term of contract 6 years  
v3.23.1
OTHER FINANCIAL STATEMENT DETAILS - Crypto Asset Safeguarding Liability and Corresponding Asset (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Accrued Expenses and Other Current Liabilities    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding liability $ 943 $ 604
Prepaid Expenses and Other Current Assets    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding asset 943 604
Bitcoin | Accrued Expenses and Other Current Liabilities    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding liability 499 291
Bitcoin | Prepaid Expenses and Other Current Assets    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding asset 499 291
Ethereum | Accrued Expenses and Other Current Liabilities    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding liability 362 250
Ethereum | Prepaid Expenses and Other Current Assets    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding asset 362 250
Other | Accrued Expenses and Other Current Liabilities    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding liability 82 63
Other | Prepaid Expenses and Other Current Assets    
Schedule of Crypto-asset Safeguarding Asset and Liability [Line Items]    
Crypto asset safeguarding asset $ 82 $ 63
v3.23.1
OTHER FINANCIAL STATEMENT DETAILS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax    
Beginning balance $ 20,274 $ 21,727
Other comprehensive income (loss) before reclassifications 81 (261)
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) 51 47
Other comprehensive income (loss), net of tax 30 (308)
Ending balance 19,858 20,603
Accumulated Other Comprehensive Income (Loss)    
Accumulated Balances of Other Comprehensive Income (Loss), Estimated Tax Benefit (Expense)    
Beginning balance 128 (2)
Other comprehensive income (loss) before reclassifications (41) 62
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) 0 0
Net current period other comprehensive income (loss) (41) 62
Ending balance 87 60
Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax    
Beginning balance (928) (136)
Ending balance (898) (444)
Unrealized Gains (Losses) on Cash Flow Hedges    
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax    
Beginning balance 111 199
Other comprehensive income (loss) before reclassifications (35) 44
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) 76 47
Net current period other comprehensive income (loss) (111) (3)
Ending balance 0 196
Unrealized Gains (Losses) on Investments    
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax    
Beginning balance (591) (87)
Other comprehensive income (loss) before reclassifications 150 (293)
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) (25) 0
Net current period other comprehensive income (loss) 175 (293)
Ending balance (416) (380)
Foreign Currency Translation Adjustment (“CTA”)    
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax    
Beginning balance (575) (270)
Other comprehensive income (loss) before reclassifications (20) (95)
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) 0 0
Net current period other comprehensive income (loss) (20) (95)
Ending balance (595) (365)
Net Investment Hedges CTA Gains (Losses)    
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax    
Beginning balance (1) 24
Other comprehensive income (loss) before reclassifications 27 21
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) 0 0
Net current period other comprehensive income (loss) 27 21
Ending balance $ 26 $ 45
v3.23.1
OTHER FINANCIAL STATEMENT DETAILS - Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items]    
Net revenues $ (7,040) $ (6,483)
Other income (expense), net (75) 82
Income before income taxes (1,074) (629)
Income tax expense 279 120
Net income (loss) (795) (509)
Amount of Gains (Losses) Reclassified From Accumulated Other Comprehensive Income (loss)    
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items]    
Income before income taxes 51 47
Income tax expense 0 0
Net income (loss) 51 47
Amount of Gains (Losses) Reclassified From Accumulated Other Comprehensive Income (loss) | Gains on cash flow hedges—foreign currency exchange contracts    
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items]    
Net revenues 76 47
Amount of Gains (Losses) Reclassified From Accumulated Other Comprehensive Income (loss) | Losses on investments    
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items]    
Net revenues (23) 0
Other income (expense), net $ (2) $ 0
v3.23.1
OTHER FINANCIAL STATEMENT DETAILS - Other Income (Expense), Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Other Income and Expenses [Abstract]    
Interest income $ 108 $ 15
Interest expense (87) (59)
Net gains (losses) on strategic investments 48 14
Other 6 (52)
Other income (expense), net $ 75 $ (82)
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Schedule of Assets Underlying Funds Receivable and Customer Accounts, Short-term Investments, and Long-term Investments (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Funds receivable and customer accounts:    
Total funds receivable and customer accounts $ 35,276 $ 36,357
Short-term investments:    
Time deposits 478 482
Available-for-sale debt securities 3,068 2,593
Restricted cash 13 17
Total short-term investments 3,559 3,092
Long-term investments:    
Time deposits 65 55
Available-for-sale debt securities 2,347 2,817
Strategic investments 2,220 2,146
Total long-term investments 4,632 5,018
Cash and cash equivalents    
Funds receivable and customer accounts:    
Total funds receivable and customer accounts 10,580 11,363
Time deposits    
Funds receivable and customer accounts:    
Total funds receivable and customer accounts 100 95
Available-for-sale debt securities    
Funds receivable and customer accounts:    
Total funds receivable and customer accounts 18,181 17,349
Funds receivable    
Funds receivable and customer accounts:    
Total funds receivable and customer accounts $ 6,415 $ 7,550
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Estimated Fair Value of Investments Classified as Available for Sale (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost $ 23,511 $ 22,869
Gross Unrealized Gains 4 1
Gross Unrealized Losses (420) (592)
Estimated Fair Value 23,095 22,278
Funds receivable and customer accounts | U.S. government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 9,665 8,736
Gross Unrealized Gains 2 0
Gross Unrealized Losses (175) (252)
Estimated Fair Value 9,492 8,484
Funds receivable and customer accounts | Foreign government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 1,189 1,479
Gross Unrealized Gains 0 0
Gross Unrealized Losses (26) (44)
Estimated Fair Value 1,163 1,435
Funds receivable and customer accounts | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 1,556 1,637
Gross Unrealized Gains 0 0
Gross Unrealized Losses (63) (82)
Estimated Fair Value 1,493 1,555
Funds receivable and customer accounts | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 1,389 1,324
Gross Unrealized Gains 0 0
Gross Unrealized Losses (16) (26)
Estimated Fair Value 1,373 1,298
Funds receivable and customer accounts | Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 486 410
Gross Unrealized Gains 1 0
Gross Unrealized Losses (2) (3)
Estimated Fair Value 485 407
Funds receivable and customer accounts | Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 3,679 3,702
Gross Unrealized Gains 1 1
Gross Unrealized Losses (6) (14)
Estimated Fair Value 3,674 3,689
Short-term investments | U.S. government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 814 815
Gross Unrealized Gains 0 0
Gross Unrealized Losses (2) (3)
Estimated Fair Value 812 812
Short-term investments | Foreign government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 817 435
Gross Unrealized Gains 0 0
Gross Unrealized Losses (12) (11)
Estimated Fair Value 805 424
Short-term investments | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 1,006 641
Gross Unrealized Gains 0 0
Gross Unrealized Losses (23) (14)
Estimated Fair Value 983 627
Short-term investments | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 406 415
Gross Unrealized Gains 0 0
Gross Unrealized Losses (7) (9)
Estimated Fair Value 399 406
Short-term investments | Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 69 324
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 69 324
Long-Term Investments | U.S. government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 493 493
Gross Unrealized Gains 0 0
Gross Unrealized Losses (30) (36)
Estimated Fair Value 463 457
Long-Term Investments | Foreign government and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 222 386
Gross Unrealized Gains 0 0
Gross Unrealized Losses (11) (22)
Estimated Fair Value 211 364
Long-Term Investments | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 601 987
Gross Unrealized Gains 0 0
Gross Unrealized Losses (33) (58)
Estimated Fair Value 568 929
Long-Term Investments | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Gross Amortized Cost 1,119 1,085
Gross Unrealized Gains 0 0
Gross Unrealized Losses (14) (18)
Estimated Fair Value $ 1,105 $ 1,067
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Accrued interest receivable $ 80 $ 65
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets
Proceeds from the sale of available-for-sale debt securities $ 1,100  
Gross realized losses on available-for-sale debt securities $ 25  
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Available-for-sale Debt Securities in Continuous Loss Position (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Fair Value    
Less than 12 months $ 8,909 $ 10,155
12 months or longer 9,893 10,282
Total 18,802 20,437
Gross Unrealized Losses    
Less than 12 months (65) (150)
12 months or longer (355) (442)
Total (420) (592)
Funds receivable and customer accounts | U.S. government and agency securities    
Fair Value    
Less than 12 months 3,471 3,730
12 months or longer 3,972 4,246
Total 7,443 7,976
Gross Unrealized Losses    
Less than 12 months (37) (89)
12 months or longer (138) (163)
Total (175) (252)
Funds receivable and customer accounts | Foreign government and agency securities    
Fair Value    
Less than 12 months 200 410
12 months or longer 876 997
Total 1,076 1,407
Gross Unrealized Losses    
Less than 12 months (5) (11)
12 months or longer (21) (34)
Total (26) (45)
Funds receivable and customer accounts | Corporate debt securities    
Fair Value    
Less than 12 months 0 9
12 months or longer 1,442 1,545
Total 1,442 1,554
Gross Unrealized Losses    
Less than 12 months 0 (1)
12 months or longer (63) (81)
Total (63) (82)
Funds receivable and customer accounts | Asset-backed securities    
Fair Value    
Less than 12 months 751 773
12 months or longer 486 508
Total 1,237 1,281
Gross Unrealized Losses    
Less than 12 months (7) (11)
12 months or longer (9) (14)
Total (16) (25)
Funds receivable and customer accounts | Municipal securities    
Fair Value    
Less than 12 months 332 264
12 months or longer 0 50
Total 332 314
Gross Unrealized Losses    
Less than 12 months (2) (3)
12 months or longer 0 0
Total (2) (3)
Funds receivable and customer accounts | Commercial paper    
Fair Value    
Less than 12 months 3,042 3,079
12 months or longer 0 0
Total 3,042 3,079
Gross Unrealized Losses    
Less than 12 months (6) (14)
12 months or longer 0 0
Total (6) (14)
Short-term investments | U.S. government and agency securities    
Fair Value    
Less than 12 months 143 345
12 months or longer 74 73
Total 217 418
Gross Unrealized Losses    
Less than 12 months 0 0
12 months or longer (2) (3)
Total (2) (3)
Short-term investments | Foreign government and agency securities    
Fair Value    
Less than 12 months 50 61
12 months or longer 514 362
Total 564 423
Gross Unrealized Losses    
Less than 12 months 0 0
12 months or longer (12) (11)
Total (12) (11)
Short-term investments | Corporate debt securities    
Fair Value    
Less than 12 months 29 97
12 months or longer 779 465
Total 808 562
Gross Unrealized Losses    
Less than 12 months 0 (2)
12 months or longer (23) (12)
Total (23) (14)
Short-term investments | Asset-backed securities    
Fair Value    
Less than 12 months 139 175
12 months or longer 178 217
Total 317 392
Gross Unrealized Losses    
Less than 12 months (2) (2)
12 months or longer (5) (7)
Total (7) (9)
Short-term investments | Commercial paper    
Fair Value    
Less than 12 months 69 224
12 months or longer 0 0
Total 69 224
Gross Unrealized Losses    
Less than 12 months 0 0
12 months or longer 0 0
Total 0 0
Long-Term Investments | U.S. government and agency securities    
Fair Value    
Less than 12 months 0 0
12 months or longer 463 457
Total 463 457
Gross Unrealized Losses    
Less than 12 months 0 0
12 months or longer (30) (36)
Total (30) (36)
Long-Term Investments | Foreign government and agency securities    
Fair Value    
Less than 12 months 32 31
12 months or longer 179 333
Total 211 364
Gross Unrealized Losses    
Less than 12 months (1) (2)
12 months or longer (10) (20)
Total (11) (22)
Long-Term Investments | Corporate debt securities    
Fair Value    
Less than 12 months 0 85
12 months or longer 559 834
Total 559 919
Gross Unrealized Losses    
Less than 12 months 0 (6)
12 months or longer (33) (52)
Total (33) (58)
Long-Term Investments | Asset-backed securities    
Fair Value    
Less than 12 months 651 872
12 months or longer 371 195
Total 1,022 1,067
Gross Unrealized Losses    
Less than 12 months (5) (9)
12 months or longer (9) (9)
Total $ (14) $ (18)
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Estimated Fair Values of Investments Classified as Available for Sale by Contractual Maturity (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Amortized Cost    
One year or less $ 13,117  
After one year through five years 8,115  
After five years through ten years 2,205  
After ten years 74  
Gross Amortized Cost 23,511 $ 22,869
Fair Value    
One year or less 12,977  
After one year through five years 7,862  
After five years through ten years 2,183  
After ten years 73  
Fair Value $ 23,095 $ 22,278
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Strategic Investments (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Carrying value of marketable equity securities recorded in long-term investments $ 398 $ 323
Carrying value of non-marketable equity 142 136
Carrying value of non-marketable equity securities which do not have readily determinable fair value $ 1,800 $ 1,800
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Measurement Alternative Adjustments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Equity Securities without Readily Determinable Fair Value [Roll Forward]    
Carrying amount, beginning of period $ 1,687 $ 1,268
Adjustments related to non-marketable equity securities:    
Net additions 16 4
Gross unrealized gains 22 197
Gross unrealized losses and impairments (45) 0
Carrying amount, end of period $ 1,680 $ 1,469
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Summary of Cumulative Gross Unrealized Gains and Cumulative Gross Unrealized Losses and Impairment Related to Non-marketable Equity Securities Accounted for Under the Measurement Alternative (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Cumulative gross unrealized gains $ 1,159 $ 1,137
Cumulative gross unrealized losses and impairments $ (173) $ (131)
v3.23.1
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Schedule of Unrealized Gains (Losses) on Strategic Investments, Excluding Those Accounted for Using the Equity Method (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Net unrealized gains (losses) $ 52 $ (36)
v3.23.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Assets:    
Funds receivable and customer accounts $ 35,276 $ 36,357
Liabilities:    
Cash 6,900 6,800
Short-term restricted cash 13 17
Time deposits 543 537
Carrying value of non-marketable equity securities which do not have readily determinable fair value 1,800 1,800
Cash and cash equivalents    
Assets:    
Funds receivable and customer accounts 10,580 11,363
Cash, time deposits and funds receivable    
Assets:    
Funds receivable and customer accounts 17,100 18,800
Fair value, measurements, recurring basis    
Assets:    
Cash and cash equivalents 153 932
Funds receivable and customer accounts 18,181 17,541
Derivatives 156 244
Crypto asset safeguarding asset 943 604
Total financial assets 25,246 25,054
Liabilities:    
Derivatives 267 298
Crypto asset safeguarding liability 943 604
Total financial liabilities 1,210 902
Fair value, measurements, recurring basis | Cash and cash equivalents    
Assets:    
Funds receivable and customer accounts   192
Fair value, measurements, recurring basis | U.S. government and agency securities    
Assets:    
Funds receivable and customer accounts 9,493 8,484
Fair value, measurements, recurring basis | Foreign government and agency securities    
Assets:    
Funds receivable and customer accounts 1,532 1,777
Fair value, measurements, recurring basis | Corporate debt securities    
Assets:    
Funds receivable and customer accounts 1,624 1,694
Fair value, measurements, recurring basis | Asset-backed securities    
Assets:    
Funds receivable and customer accounts 1,373 1,298
Fair value, measurements, recurring basis | Commercial paper    
Assets:    
Funds receivable and customer accounts 3,674 3,689
Fair value, measurements, recurring basis | Municipal securities    
Assets:    
Funds receivable and customer accounts 485 407
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets:    
Cash and cash equivalents 0 0
Funds receivable and customer accounts 0 0
Derivatives 0 0
Crypto asset safeguarding asset 0 0
Total financial assets 398 323
Liabilities:    
Derivatives 0 0
Crypto asset safeguarding liability 0 0
Total financial liabilities 0 0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents    
Assets:    
Funds receivable and customer accounts   0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities    
Assets:    
Funds receivable and customer accounts 0 0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government and agency securities    
Assets:    
Funds receivable and customer accounts 0 0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities    
Assets:    
Funds receivable and customer accounts 0 0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities    
Assets:    
Funds receivable and customer accounts 0 0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper    
Assets:    
Funds receivable and customer accounts 0 0
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities    
Assets:    
Funds receivable and customer accounts 0 0
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2)    
Assets:    
Cash and cash equivalents 153 932
Funds receivable and customer accounts 18,181 17,541
Derivatives 156 244
Crypto asset safeguarding asset 943 604
Total financial assets 24,848 24,731
Liabilities:    
Derivatives 267 298
Crypto asset safeguarding liability 943 604
Total financial liabilities 1,210 902
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents    
Assets:    
Funds receivable and customer accounts   192
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities    
Assets:    
Funds receivable and customer accounts 9,493 8,484
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Foreign government and agency securities    
Assets:    
Funds receivable and customer accounts 1,532 1,777
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities    
Assets:    
Funds receivable and customer accounts 1,624 1,694
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities    
Assets:    
Funds receivable and customer accounts 1,373 1,298
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper    
Assets:    
Funds receivable and customer accounts 3,674 3,689
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Municipal securities    
Assets:    
Funds receivable and customer accounts 485 407
Fair value, measurements, recurring basis | Short-term investments    
Assets:    
Investments 3,068 2,593
Fair value, measurements, recurring basis | Short-term investments | U.S. government and agency securities    
Assets:    
Investments 812 812
Fair value, measurements, recurring basis | Short-term investments | Foreign government and agency securities    
Assets:    
Investments 805 424
Fair value, measurements, recurring basis | Short-term investments | Corporate debt securities    
Assets:    
Investments 983 627
Fair value, measurements, recurring basis | Short-term investments | Asset-backed securities    
Assets:    
Investments 399 406
Fair value, measurements, recurring basis | Short-term investments | Commercial paper    
Assets:    
Investments 69 324
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government and agency securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2)    
Assets:    
Investments 3,068 2,593
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities    
Assets:    
Investments 812 812
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Foreign government and agency securities    
Assets:    
Investments 805 424
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Corporate debt securities    
Assets:    
Investments 983 627
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Asset-backed securities    
Assets:    
Investments 399 406
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Commercial paper    
Assets:    
Investments 69 324
Fair value, measurements, recurring basis | Long-Term Investments    
Assets:    
Investments 2,745 3,140
Fair value, measurements, recurring basis | Long-Term Investments | U.S. government and agency securities    
Assets:    
Investments 463 457
Fair value, measurements, recurring basis | Long-Term Investments | Foreign government and agency securities    
Assets:    
Investments 211 364
Fair value, measurements, recurring basis | Long-Term Investments | Corporate debt securities    
Assets:    
Investments 568 929
Fair value, measurements, recurring basis | Long-Term Investments | Asset-backed securities    
Assets:    
Investments 1,105 1,067
Fair value, measurements, recurring basis | Long-Term Investments | Marketable equity securities    
Assets:    
Investments 398 323
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets:    
Investments 398 323
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government and agency securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities    
Assets:    
Investments 0 0
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities    
Assets:    
Investments 398 323
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2)    
Assets:    
Investments 2,347 2,817
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities    
Assets:    
Investments 463 457
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Foreign government and agency securities    
Assets:    
Investments 211 364
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Corporate debt securities    
Assets:    
Investments 568 929
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Asset-backed securities    
Assets:    
Investments 1,105 1,067
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Marketable equity securities    
Assets:    
Investments $ 0 $ 0
v3.23.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes receivable $ 444 $ 441
Long-term debt (including current portion) in the form of fixed rate notes 10,300 10,300
Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes receivable 351 396
Long-term debt (including current portion) in the form of fixed rate notes $ 9,500 $ 9,500
Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative instruments, duration 1 month  
Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative instruments, duration 1 year  
v3.23.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Investments Under the Fair Value Option (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Debt securities, available-for-sale, excluding accrued interest $ 23,095   $ 22,278
Fair Value Option, Investments | Funds receivable and customer accounts      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Debt securities, available-for-sale, excluding accrued interest 501   $ 481
Net gains (losses) from fair value changes $ 7 $ (34)  
v3.23.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Equity securities measured at cost minus impairment $ 1,680 $ 1,687 $ 1,469 $ 1,268
Fair Value, measurements, not on a recurring basis        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Non-marketable equity securities measured using the Measurement Alternative 138 1,122    
Other assets 47 165    
Total financial assets 185 1,287    
Equity securities measured at cost minus impairment 1,500 565    
Fair Value, measurements, not on a recurring basis | Significant Other Observable Inputs (Level 2)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Non-marketable equity securities measured using the Measurement Alternative 100 724    
Other assets 47 165    
Total financial assets 147 889    
Fair Value, measurements, not on a recurring basis | Fair Value, Inputs, Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Non-marketable equity securities measured using the Measurement Alternative 38 398    
Other assets 0 0    
Total financial assets $ 38 $ 398    
v3.23.1
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]      
Maximum maturity of foreign currency exchange contracts 12 months    
Net investment hedge CTA gains (losses), reclassifications $ 0 $ 0  
Derivative asset, offset 62,000,000   $ 70,000,000
Derivative liability, offset 62,000,000   $ 70,000,000
Net derivative gains related to cash flow hedges to be reclassified into earnings within the next 12 months $ 0    
v3.23.1
DERIVATIVE INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Other current assets    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets
Other assets (non-current)    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Other current liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
Other long-term liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Deferred tax liability and other long-term liabilities Deferred tax liability and other long-term liabilities
Foreign Exchange Contract    
Derivatives, Fair Value [Line Items]    
Derivative assets $ 156 $ 244
Derivative liabilities 267 298
Foreign Exchange Contract | Designated as Hedging Instrument | Other current assets    
Derivatives, Fair Value [Line Items]    
Derivative assets 90 167
Foreign Exchange Contract | Designated as Hedging Instrument | Other assets (non-current)    
Derivatives, Fair Value [Line Items]    
Derivative assets 19 15
Foreign Exchange Contract | Designated as Hedging Instrument | Other current liabilities    
Derivatives, Fair Value [Line Items]    
Derivative liabilities 78 68
Foreign Exchange Contract | Designated as Hedging Instrument | Other long-term liabilities    
Derivatives, Fair Value [Line Items]    
Derivative liabilities 111 133
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other current assets    
Derivatives, Fair Value [Line Items]    
Derivative assets 47 62
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other current liabilities    
Derivatives, Fair Value [Line Items]    
Derivative liabilities $ 78 $ 97
v3.23.1
DERIVATIVE INSTRUMENTS - Offsetting Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Other current assets    
Offsetting Liabilities [Line Items]    
Cash collateral posted $ 46 $ 24
Other current liabilities    
Offsetting Liabilities [Line Items]    
Cash collateral received $ 74 $ 203
v3.23.1
DERIVATIVE INSTRUMENTS - Location in the Condensed Consolidated Statements of Income and Amount of Recognized Gains or Losses Related to Derivative Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]    
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded (net revenues) $ 7,040 $ 6,483
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded (other income (expense), net) 75 (82)
Net revenues    
Derivative Instruments, Gain (Loss) [Line Items]    
Total gains (losses) $ 76 $ 47
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded (other income (expense), net) Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded (other income (expense), net)
Other income (expense), net    
Derivative Instruments, Gain (Loss) [Line Items]    
Total gains (losses) $ (45) $ (30)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded (other income (expense), net) Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded (other income (expense), net)
Foreign Exchange Contract | Designated as Hedging Instrument | Net revenues    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gains on foreign currency exchange contracts reclassified from AOCI $ 76 $ 47
Foreign Exchange Contract | Designated as Hedging Instrument | Other income (expense), net    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gains on foreign currency exchange contracts reclassified from AOCI 0 0
Foreign Exchange Contract | Not Designated as Hedging Instrument | Net revenues    
Derivative Instruments, Gain (Loss) [Line Items]    
Total gains (losses) 0 0
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other income (expense), net    
Derivative Instruments, Gain (Loss) [Line Items]    
Total gains (losses) (75) (39)
Foreign Exchange Contract | Net Investment Hedging | Designated as Hedging Instrument | Net revenues    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness 0 0
Foreign Exchange Contract | Net Investment Hedging | Designated as Hedging Instrument | Other income (expense), net    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness $ 30 $ 9
v3.23.1
DERIVATIVE INSTRUMENTS - Pre-tax Unrealized Gains or Losses Included in the Assessment of Hedge Effectiveness Related To Derivative Instruments Designated as Hedging Instruments That Are Recognized in Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]    
Unrealized gains on foreign exchange contracts designated as net investment hedges $ 27 $ 21
Foreign Exchange Contract    
Derivative Instruments, Gain (Loss) [Line Items]    
Unrealized (losses) gains on foreign exchange contracts designated as cash flow hedges (35) 44
Unrealized gains on foreign exchange contracts designated as net investment hedges 27 21
Total unrealized (losses) gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss) $ (8) $ 65
v3.23.1
DERIVATIVE INSTRUMENTS - Notional Amounts of Outstanding Derivatives (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Notional amounts $ 17,614 $ 18,989
Foreign Exchange Contract | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amounts 7,118 7,149
Foreign Exchange Contract | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amounts $ 10,496 $ 11,840
v3.23.1
LOANS AND INTEREST RECEIVABLE - Consumer Receivable (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Purchased consumer receivables $ 268  
Consumer Receivables    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and interest receivable 6,067 $ 5,872
Participation interest sold, value $ 23 $ 17
Threshold period, write-off of receivables 180 days  
Threshold period, write-off of bankrupt accounts 60 days  
Consumer Receivables | Geographic Distribution, Domestic    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Threshold period, write-off of receivables 120 days  
Consumer Loans Receivable | Consumer Receivables    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Expected period of repayment 12 months  
v3.23.1
LOANS AND INTEREST RECEIVABLE - Schedule of Delinquency Status of Consumer Loans and Interest Receivable by Year of Origination (Details) - Consumer Receivables - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, Revolving Loans Amortized Cost Basis $ 1,967   $ 1,922
Loans, advances, and interest and fees receivable, originated current fiscal year 2,968   3,819
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 1,045   131
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 87   0
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, Total $ 6,067   $ 5,872
Loans, advances, and interest and fees receivable, Percent 100.00%   100.00%
Financing Receivable, Allowance For Credit Loss, Write Off, By Origination Year [Abstract]      
Gross charge-offs, revolving Loans Amortized Cost Basis $ 31    
Gross charge-offs, originated current fiscal year 0    
Gross charge-offs, originated fiscal year before current fiscal year 45    
Gross charge-offs, originated two years before current fiscal year 2    
Gross charge-offs, originated three years before current fiscal year 0    
Gross charge-offs, originated four years before current fiscal year 0    
Total Gross charge-offs 78 $ 51  
Other Consumer Credit Products      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, Total 11   $ 11
Current      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, Revolving Loans Amortized Cost Basis 1,892   1,850
Loans, advances, and interest and fees receivable, originated current fiscal year 2,948   3,726
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 947   123
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 82   0
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, Total $ 5,869   $ 5,699
Loans, advances, and interest and fees receivable, Percent 96.70%   97.10%
30 - 59 Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, Revolving Loans Amortized Cost Basis $ 26   $ 23
Loans, advances, and interest and fees receivable, originated current fiscal year 18   26
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 19   2
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 1   0
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, Total $ 64   $ 51
Loans, advances, and interest and fees receivable, Percent 1.10%   0.90%
60 - 89 Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, Revolving Loans Amortized Cost Basis $ 16   $ 15
Loans, advances, and interest and fees receivable, originated current fiscal year 2   20
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 30   2
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 1   0
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, Total $ 49   $ 37
Loans, advances, and interest and fees receivable, Percent 0.80%   0.60%
90 - 179 Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, Revolving Loans Amortized Cost Basis $ 33   $ 34
Loans, advances, and interest and fees receivable, originated current fiscal year 0   47
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 49   4
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 3   0
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 0   0
Loans, advances, and interest and fees receivable, Total $ 85   $ 85
Loans, advances, and interest and fees receivable, Percent 1.40%   1.40%
v3.23.1
LOANS AND INTEREST RECEIVABLE - Schedule of Allowance for Consumer Loans and Interest Receivable (Details) - Consumer Loans Receivable - USD ($)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Allowance for loans and interest receivable    
Beginning balance $ 347,000,000 $ 286,000,000
Provisions 101,000,000 49,000,000
Charge-offs (78,000,000) (51,000,000)
Recoveries 7,000,000 3,000,000
Other 4,000,000 (7,000,000)
Ending balance 381,000,000 280,000,000
Consumer Loans Receivable    
Allowance for loans and interest receivable    
Beginning balance 322,000,000 243,000,000
Provisions 95,000,000 43,000,000
Charge-offs (71,000,000) (42,000,000)
Recoveries 7,000,000 3,000,000
Other 4,000,000 (6,000,000)
Ending balance 357,000,000 241,000,000
Interest Receivable    
Allowance for loans and interest receivable    
Beginning balance 25,000,000 43,000,000
Provisions 6,000,000 6,000,000
Charge-offs (7,000,000) (9,000,000)
Recoveries 0 0
Other 0 (1,000,000)
Ending balance 24,000,000 39,000,000
Other Consumer Credit Products    
Allowance for loans and interest receivable    
Ending balance $ 0 $ 3,000,000
v3.23.1
LOANS AND INTEREST RECEIVABLE - Merchant Receivables (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Purchased merchant receivables $ 666 $ 605  
Merchant Receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and interest receivable 2,055   $ 2,146
Participation interest sold, value $ 91   97
Threshold period, write-off of bankrupt accounts 60 days    
Merchant Receivables | PayPal Working Capital Products      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Period pas expected period of repayment 180 days    
Threshold period, write-off of receivables, nonpayment 60 days    
Threshold period two, write-off of receivables 360 days    
Merchant Receivables | PayPal Working Capital Products | Minimum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Required percentage of original loan payments every 90 days 10.00%    
Expected period of repayment 9 months    
Merchant Receivables | PayPal Working Capital Products | Maximum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Expected period of repayment 12 months    
Merchant Receivables | PayPal Business Loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Threshold period, write-off of receivables 180 days    
Merchant Receivables | PayPal Business Loans | Minimum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Expected period of repayment 3 months    
Merchant Receivables | PayPal Business Loans | Maximum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Expected period of repayment 12 months    
Consumer Receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and interest receivable $ 6,067   $ 5,872
Threshold period, write-off of receivables 180 days    
Threshold period, write-off of bankrupt accounts 60 days    
v3.23.1
LOANS AND INTEREST RECEIVABLE - Schedule of Delinquency Status of Merchant Loans, Advances, and Interest and Fees Receivable by Year of Origination (Details) - Merchant Receivables - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, originated current fiscal year $ 797   $ 1,979
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 1,132   42
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 26   69
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 56   54
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 44   2
Loans, advances, and interest and fees receivable, Total $ 2,055   $ 2,146
Loans, advances, and interest and fees receivable, Percent 100.00%   100.00%
Financing Receivable, Allowance For Credit Loss, Write Off, By Origination Year [Abstract]      
Gross charge-offs, originated current fiscal year $ 0    
Gross charge-offs, originated fiscal year before current fiscal year 43    
Gross charge-offs, originated two years before current fiscal year 6    
Gross charge-offs, originated three years before current fiscal year 6    
Gross charge-offs, originated four years before current fiscal year 2    
Total Gross charge-offs 57 $ 23  
Current      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, originated current fiscal year 788   $ 1,826
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 965   20
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 12   57
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 47   42
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 34   2
Loans, advances, and interest and fees receivable, Total $ 1,846   $ 1,947
Loans, advances, and interest and fees receivable, Percent 89.80%   90.70%
30 - 59 Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, originated current fiscal year $ 8   $ 63
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 52   7
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 4   3
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 3   4
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 3   0
Loans, advances, and interest and fees receivable, Total $ 70   $ 77
Loans, advances, and interest and fees receivable, Percent 3.40%   3.60%
60 - 89 Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, originated current fiscal year $ 1   $ 34
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 39   4
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 3   4
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 2   2
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 2   0
Loans, advances, and interest and fees receivable, Total $ 47   $ 44
Loans, advances, and interest and fees receivable, Percent 2.30%   2.00%
90 - 179 Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, originated current fiscal year $ 0   $ 55
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 74   9
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 5   3
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 3   3
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 3   0
Loans, advances, and interest and fees receivable, Total $ 85   $ 70
Loans, advances, and interest and fees receivable, Percent 4.10%   3.30%
180+ Days      
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]      
Loans, advances, and interest and fees receivable, originated current fiscal year $ 0   $ 1
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year 2   2
Loans, advances, and interest and fees receivable, originated two years before current fiscal year 2   2
Loans, advances, and interest and fees receivable, originated three years before current fiscal year 1   3
Loans, advances, and interest and fees receivable, originated four years before current fiscal year 2   0
Loans, advances, and interest and fees receivable, Total $ 7   $ 8
Loans, advances, and interest and fees receivable, Percent 0.40%   0.40%
v3.23.1
LOANS AND INTEREST RECEIVABLE - Schedule of Allowance for Merchant Loans, Advances, and Interest and Fees Receivable (Details) - Merchant Loans and Advances - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Allowance for loans and interest receivable    
Beginning balance $ 248 $ 201
Provisions 59 6
Charge-offs (57) (23)
Recoveries 7 9
Ending balance 257 193
Merchant Loans and Advances    
Allowance for loans and interest receivable    
Beginning balance 230 192
Provisions 49 5
Charge-offs (51) (21)
Recoveries 7 9
Ending balance 235 185
Interest and Fees Receivable    
Allowance for loans and interest receivable    
Beginning balance 18 9
Provisions 10 1
Charge-offs (6) (2)
Recoveries 0 0
Ending balance $ 22 $ 8
v3.23.1
DEBT - Fixed Rate Notes (Details) - USD ($)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
May 31, 2022
May 31, 2020
Sep. 30, 2019
Debt Instrument [Line Items]            
Outstanding aggregate principal amount $ 10,418,000,000          
Senior Notes | Notes            
Debt Instrument [Line Items]            
Outstanding aggregate principal amount 10,418,000,000   $ 10,418,000,000      
Interest expense and fees $ 83,000,000 $ 56,000,000        
Senior Notes | Fixed-Rate Notes Issued May 2022            
Debt Instrument [Line Items]            
Face amount       $ 3,000,000,000    
Senior Notes | Fixed-rate Notes Issued May 2020            
Debt Instrument [Line Items]            
Face amount         $ 4,000,000,000  
Senior Notes | Fixed-rate Notes Issued September 2019            
Debt Instrument [Line Items]            
Face amount           $ 5,000,000,000
v3.23.1
DEBT - Schedule of Outstanding Aggregate Principal Amount Related to the Notes (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Outstanding aggregate principal amount $ 10,418  
Total carrying amount of term debt 10,481 $ 10,417
Senior Notes    
Debt Instrument [Line Items]    
Unamortized premium (discount) and issuance costs, net (72) (74)
Less: current portion of long-term debt (418) (418)
Total carrying amount of term debt 9,928 9,926
Senior Notes | Notes    
Debt Instrument [Line Items]    
Outstanding aggregate principal amount $ 10,418 10,418
Senior Notes | Fixed-rate 2.400% notes    
Debt Instrument [Line Items]    
Interest rate 2.40%  
Effective Interest Rate 2.52%  
Outstanding aggregate principal amount $ 1,250 1,250
Senior Notes | Fixed-rate 2.650% notes    
Debt Instrument [Line Items]    
Interest rate 2.65%  
Effective Interest Rate 2.78%  
Outstanding aggregate principal amount $ 1,250 1,250
Senior Notes | Fixed-rate 2.850% notes    
Debt Instrument [Line Items]    
Interest rate 2.85%  
Effective Interest Rate 2.96%  
Outstanding aggregate principal amount $ 1,500 1,500
Senior Notes | Fixed-rate 1.350% notes    
Debt Instrument [Line Items]    
Interest rate 1.35%  
Effective Interest Rate 1.55%  
Outstanding aggregate principal amount $ 418 418
Senior Notes | Fixed-rate 1.650% notes    
Debt Instrument [Line Items]    
Interest rate 1.65%  
Effective Interest Rate 1.78%  
Outstanding aggregate principal amount $ 1,000 1,000
Senior Notes | Fixed-rate 2.300% notes    
Debt Instrument [Line Items]    
Interest rate 2.30%  
Effective Interest Rate 2.39%  
Outstanding aggregate principal amount $ 1,000 1,000
Senior Notes | Fixed-rate 3.250% notes    
Debt Instrument [Line Items]    
Interest rate 3.25%  
Effective Interest Rate 3.33%  
Outstanding aggregate principal amount $ 1,000 1,000
Senior Notes | Fixed-rate 3.900% notes    
Debt Instrument [Line Items]    
Interest rate 3.90%  
Effective Interest Rate 4.06%  
Outstanding aggregate principal amount $ 500 500
Senior Notes | Fixed-rate 4.400% notes    
Debt Instrument [Line Items]    
Interest rate 4.40%  
Effective Interest Rate 4.53%  
Outstanding aggregate principal amount $ 1,000 1,000
Senior Notes | Fixed-rate 5.050% notes    
Debt Instrument [Line Items]    
Interest rate 5.05%  
Effective Interest Rate 5.14%  
Outstanding aggregate principal amount $ 1,000 1,000
Senior Notes | Fixed-rate 5.250% notes    
Debt Instrument [Line Items]    
Interest rate 5.25%  
Effective Interest Rate 5.34%  
Outstanding aggregate principal amount $ 500 $ 500
v3.23.1
DEBT - Paidy Revolving Credit Facility (Details) - Revolving Credit Facility - Paidy Credit Agreement - Unsecured Debt
¥ in Millions, $ in Millions
 1 Months Ended
Sep. 30, 2022
JPY (¥)
Mar. 31, 2023
JPY (¥)
Mar. 31, 2023
USD ($)
Dec. 31, 2022
JPY (¥)
Dec. 31, 2022
USD ($)
Feb. 28, 2022
JPY (¥)
Line of Credit Facility [Line Items]            
Maximum borrowing capacity   ¥ 90,000 $ 678     ¥ 60,000
Increase to the borrowing capacity ¥ 30,000          
Borrowings outstanding   73,300 553 ¥ 64,300 $ 491  
Remaining borrowing capacity   ¥ 16,700 $ 125      
v3.23.1
DEBT - Future Principal Payments (Details)
$ in Millions
Mar. 31, 2023
USD ($)
Future Principal Payments  
Remaining 2023 $ 418
2024 1,250
2025 1,000
2026 1,250
2027 500
Thereafter 6,000
Total carrying amount of term debt $ 10,418
v3.23.1
COMMITMENTS AND CONTINGENCIES - Additional Information (Details)
$ in Millions
Apr. 04, 2023
action
Mar. 31, 2023
USD ($)
Jan. 11, 2023
action
Dec. 31, 2022
USD ($)
Nov. 02, 2022
action
Aug. 02, 2022
action
Jan. 19, 2022
action
Dec. 16, 2021
action
Aug. 20, 2021
action
Other Commitments [Line Items]                  
Unused credit available to accountholders | $   $ 5,300   $ 4,900          
Allowance for transaction losses | $   58   66          
Allowance for negative customer balances | $   $ 260   $ 212          
Pending Litigation | Unfavorable Regulatory Action | Pang v. Daniel Schulman, et al.                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions               1  
Pending Litigation | Unfavorable Regulatory Action | Lalor v. Daniel Schulman, et al.                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions             1    
Pending Litigation | Unfavorable Regulatory Action | Kang v. PayPal Holdings, Inc., et al.                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions                 1
Pending Litigation | Unfavorable Regulatory Action | Jefferson v. Daniel Schulman, et al.                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions           1      
Pending Litigation | Unfavorable Regulatory Action | In re PayPal Holdings, Inc. Securities Litigation                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions     1            
Pending Litigation | Unfavorable Regulatory Action | Shah v. Daniel Schulman, et al.                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions         1        
Pending Litigation | Unfavorable Regulatory Action | Nelson v. Daniel Schulman, et al. | Subsequent Event                  
Other Commitments [Line Items]                  
Number of related putative shareholder derivative actions 1                
v3.23.1
COMMITMENTS AND CONTINGENCIES - Schedule of Allowance for Transaction Losses And Negative Customer Balances (Details) - Protection Programs - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Loss Contingency Accrual    
Beginning balance $ 278 $ 355
Provision 300 322
Realized losses (265) (390)
Recoveries 5 32
Ending balance $ 318 $ 319
v3.23.1
STOCK REPURCHASE PROGRAMS (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Equity, Class of Treasury Stock [Line Items]    
Cash paid for shares repurchased $ 1,432 $ 1,500
July 2019 and June 2022 Stock Repurchase Programs    
Equity, Class of Treasury Stock [Line Items]    
Repurchases of shares of common stock, shares repurchased (in shares) 19  
Cash paid for shares repurchased $ 1,400  
Average price per share, excluding excise tax (in dollars per share) $ 76.60  
June 2022 Stock Repurchase Program    
Equity, Class of Treasury Stock [Line Items]    
Remaining amount authorized for future repurchase of common stock $ 14,400  
v3.23.1
STOCK-BASED PLANS - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense $ 357 $ 442
Capitalized stock-based compensation expense 11 16
Customer support and operations    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 72 73
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 43 45
Technology and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 148 136
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense $ 94 $ 188
v3.23.1
INCOME TAXES (Details)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]    
Effective income tax rate, percentage 26.00% 19.00%
v3.23.1
RESTRUCTURING AND OTHER CHARGES - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]    
Restructuring expenses $ 117 $ 20
Asset impairment charges 39 $ 16
Owned Property | Discontinued Operations, Held-for-sale    
Restructuring Cost and Reserve [Line Items]    
Gain (loss) upon designation of property as held for sale $ (8)  
v3.23.1
RESTRUCTURING AND OTHER CHARGES - Restructuring Reserve Activity (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Restructuring Reserve    
Accrued liability, beginning of period $ 24  
Charges 117 $ 20
Payments (45)  
Accrued liability, end of period $ 96