2022 Global Impact Report | PayPal

2022 Global Impact Report Transforming digital payments to create economic opportunity

Table of Contents Please visit our Global Impact website and Additional Resources section of this report for further public information on our ESG-related strategies, practices and policies. We are Message from Our Responsible Employees committed to transparent communication with President & CEO Business Practices & Culture our stakeholders and welcome feedback on this report and other ESG matters. Questions or requests for additional information can be 11 Managing Risk & Compliance 25 Managing Our Global directed to [email protected]. 12 Enabling Effective Workforce About Cybersecurity Management 28 Leading With Diversity, PayPal 14 Enriching Our Global Data Inclusion, Equity & Management & Privacy Belonging Practices 31 Empowering Employee 05 Linking Our Business 16 Upholding Business Ethics Community Impact & ESG Strategy Appendix 06 Assessing & Prioritizing Our ESG Topics 07 Maintaining Strong Environmental 38 Supporting the U.N. Corporate Governance Social Sustainability Sustainable Development & ESG Oversight Goals Innovation 39 Task Force on Climate- 34 Mitigating Our Climate- Related Financial Disclosure Related Risks (TCFD) Summary 18 Promoting Economic 40 ESG Performance 2022 Opportunity for SMBs & 36 Managing Our Natural Metrics Table Highlights Entrepreneurs Resources 20 Advancing Financial Health 50 Independent Limited & Consumer Convenience Assurance Statement 21 Maintaining a Safe Platform 52 Additional Resources for Customers 22 Creating More Ways to Give Forward-Looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that involve expectations, plans or intentions (such as those relating to future business, future results of operations or financial condition, new or planned features or services, mergers or acquisitions, or management strategies). These forward-looking statements can be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “continue,” “strategy,” “future,” “opportunity,” “plan,” “project,” “strive,” “aim,” “forecast,” and other similar expressions. These forward-looking statements involve risks and uncertainties that could cause our actual results and financial condition to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others, those discussed in the “Risk Factors,” “Quantitative and Qualitative Disclosures about Market Risk” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K for the year ended December 31, 2022 and our subsequent filings with the U.S. Securities and Exchange Commission (SEC). We do not intend, and undertake no obligation except as required by law, to update any of our forward-looking statements after the date of this document to reflect actual results, new information or future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The standards of measurement and performance contained in this report are developing and may be based on assumptions, estimates or information collected on a delayed or incomplete basis. The inclusion of information in this report is not an indication that we deem such information to be material or important to an understanding of our business or an investment decision with respect to our securities. Incorporation by Reference All website addresses contained in this report are intended to provide inactive, textual references only. The content on, or accessible through, any website identified in this report is not a part of, and is not incorporated by reference into, this report or in any other report or document that we file with the SEC.

Message from Our President & CEO Our PayPal community is committed to democratizing capital to over 250 portfolio companies globally, and for Enabling Customers and Employees to financial services and empowering millions of consumers the second year in a row, we honored the legacy of Maggie Give More Easily and merchants to join and thrive in the global economy. Lena Walker by recognizing women who are creating We are continually inspired by the generosity of our This purpose is the foundation on which our business opportunities for economic advancement in underserved broader PayPal community. For the first time in our and strategy are built, and it guides our efforts today. communities. history, our customers donated more than $20 billion We believe operating with a strong sense of purpose in a single calendar year to nonprofits and charitable helps drive long-term, sustainable growth by inspiring Prioritizing Our Employees’ Total Wellness causes through our platform. Recognizing the essential our employees and creating value for our shareholders, Fostering an engaged, diverse and resilient workforce role PayPal plays in times of need, we have further customers and other stakeholders. is critical to achieving our mission. Through our integrated giving opportunities through Give at Checkout In our 2022 Global Impact Report, we share some of our Employee Financial Wellness Initiative, launched in and Venmo Charity Profiles product solutions. efforts to help customers and communities thrive, provide 2019, we continued to provide tools and resources for our In response to the devastating violence in Ukraine, we innovative solutions to unlock greater opportunity for all employees to build their financial wellness. We are proud to helped to facilitate more than $1.2 billion to support those and forge a path towards having a sustainable impact have exceeded our goal for our employees globally to have impacted, including through donations made to nonprofits, for our stakeholders in line with our commitments. Some at least 20% of their discretionary income remaining after person-to-person payments and money transfers. We highlights include: taxes and typical expenses are paid. This is an ongoing In my final year as president and CEO, I am proud of focus for PayPal and will continue to be an essential part continue to mobilize our platform and customers to the enormous impact PayPal’s global community has Creating Economic Opportunity for Our of our approach to total wellness. respond to global crises, including after destructive natural created — and I am grateful to all our investors, customers, Customers disasters such as the earthquakes in Turkey and Syria, employees and partners who have championed this work. We continue to work towards having a workforce that flooding in Pakistan and Hurricane Ian in Florida. Over the past eight years, I have seen first-hand how our In an increasingly digital economy, our products and reflects the communities and customers we serve. Over mission, vision and values reinforce the strength of the services have never been more critical. For our merchants, the past year, we have expanded our talent pipeline, once Responsibly Managing Our Environmental business and help create value for all of the stakeholders we offered new tools to create efficient and flexible again achieved global gender and U.S. ethnic pay equity Footprint we serve. checkout experiences, including the launch of the Zettle and continued to support the development of diverse We continue to concentrate our efforts on managing Terminal in the U.S. and Tap to Pay in new markets. For leaders across the company. Our ongoing efforts have led Significant work remains to upgrade the financial system consumers, our digital wallet continued to provide a secure to an 11% increase in diversity in leadership roles since we our environmental impacts and exploring sustainable and democratize financial services so that more people and easy way to manage their daily financial lives. Last became an independent company in 2015. innovations across our products and services. To reach and businesses can improve their financial health and year, we introduced PayPal Rewards and interest-bearing our goal of achieving net-zero greenhouse gas emissions pursue economic opportunity. I am confident that PayPal savings accounts in the U.S. to help consumers achieve Our employees are passionate about their communities across our value chain by 2040, we are focusing on will continue to play a central role in this effort and, in turn, their financial goals faster. and actively seek out opportunities to make a positive efficient and renewable energy use, partnering with our will drive long-term impact and sustainable growth going impact. In 2022, PayPal employees volunteered nearly largest vendors (by spend) to manage emissions across forward. We continue to focus on enabling equitable access to 100,000 hours to nonprofits around the world. Community our supply chain and considering ways to make digital capital for entrepreneurs from underserved communities, impact is an essential part of our culture that not only helps commerce more convenient and sustainable. We are proud including facilitating more than $4 billion to small- and advance our mission but also engages and empowers to increase our total renewable energy use to 90% in 2022, medium-sized businesses globally in 2022. In addition, our our employees. while maintaining 100% renewable energy for our global Economic Opportunity Fund investments in 19 minority- data centers. Dan Schulman led venture capital funds deployed nearly $300 million in President and CEO, PayPal Holdings, Inc.

About PayPal 1 PayPal Holdings, Inc. is a leading technology platform that enables digital payments and simplifies commerce Putting Our Values into Practice “In 2022, we worked to optimize experiences on behalf of merchants and consumers worldwide. Our core values of Inclusion, Innovation, Collaboration and Wellness are PayPal’s cost structure while PayPal is committed to democratizing financial services to help improve the financial health of individuals and to driving forces for our Company and are part of our operating philosophy. continuing to invest in our high- increase economic opportunity for entrepreneurs and businesses of all sizes around the world. Our goal is to enable They are an integral part of the decisions we make and the way we conviction initiatives and deliver on our merchants and consumers to manage and move their money anywhere in the world in the markets we serve, lead, inside and outside of the PayPal community. We believe they help our mission. Our commitment to anytime, on any platform and using any device when sending payments or getting paid. We believe that effective stimulate the creativity and engagement of our global workforce to serve our customers and support management of non-financial risks and opportunities, including environmental, social and governance (ESG) topics, deliver products and services designed to meet the diverse needs of their financial health ties directly helps to create value for our stakeholders and deliver on our strategy and mission. our customers. into our business performance. We believe PayPal’s combination of We operate a global, two-sided network at scale that connects merchants and consumers with 435 million active Building on Our Values through Leadership Principles scale, profitability and accounts — consisting of 400 million consumer active accounts and 35 million merchant active accounts — stability is a strategic across more than 200 markets as of December 31, 2022. In 2022, resulting from more than 2,000 conversations across our business, advantage as we we developed 12 Leadership Principles based on our core values that navigate this dynamic For more than 20 years, we have remained focused on our mission to make financial services and commerce establish a common set of expectations for all employees. We aim to environment.” more affordable, convenient and secure for all. Our goal is that PayPal continues to be a trusted, everyday app continue integrating these principles across our business, talent and Gabrielle Rabinovitch for consumers and an essential tool to help merchants, including small- and medium-sized businesses (SMBs), operations strategies. See Employees & Culture for more details. Acting Chief Financial Officer and SVP, marketplaces and large enterprises, manage and grow their business. Investor Relations and Treasurer San Jose, CA, U.S. PayPal’s Payment Solutions2 Our Leadership Principles Merchants integrate with PayPal Consumers use PayPal for financial products Inclusion Innovation Collaboration Wellness to manage their business and services and shopping tools We Partner We Dare We Deliver We Care Checkout Processing Digital Wallets Merchant Services Be a Generate Know Do the customer enduring yourself & right thing champion impact each other Consumer Risk Management Financial Services & Fraud Protection P2P Bill Pay Payouts Choose Never Work as Learn Savings Credit & inclusion stand still one team every day Giving Debit Cards Crypto Shopping and Trust each Create Be Build Rewards other simplicity & transparent the next efficiency generation Rewards Loyalty Deals 1 2 Unless otherwise expressly stated or the context otherwise requires, references to “we,” “our,” “us,” “the Company,” or “PayPal” refer to PayPal Holdings, Inc. and its consolidated subsidiaries. Our combined payment solutions comprise our proprietary payment platform.

Linking Our Business & ESG Strategy 3 Studies have shown that key non-financial risks and opportunities can impact the long-term value and growth of businesses. Our ESG strategy reflects how PayPal considers these topics across the organization and categorizes them across four core dimensions — Responsible Business Practices, Social Innovation, Employees & Culture and Environmental Sustainability. We remain focused on making progress to address financial and non-financial risks, including ESG priorities, in support of our business. Franz Paasche SVP, Chief Corporate Affairs Officer New York, NY, U.S. Our Business Priorities Our Stakeholder Value Creation “Our 2022 Global Impact Report highlights not only Creating value for PayPal and our stockholders by the progress we have made on our focus areas and prioritizing and investing in growth opportunities key metrics, but also the many ways in which we have and managing risk. unlocked new opportunities for our stakeholders. We Growing Enhancing our Forming and Seeking Driving and protecting brand value through strong believe that profit and purpose go hand in hand and our core consumer and expanding new areas of governance, ethics and compliance across our value that aligning our business with our mission and values business merchant value strategic growth and chain, including with suppliers and partners. is important to creating shared value and maintaining propositions partnerships innovation trust. This trust is critical to delivering innovation and Demonstrating competitive advantage by providing impact at scale during times of change. customers with superior products that make financial Our ESG Focus Areas services and commerce more affordable, convenient This year’s report demonstrates the ways in which we and secure. bolstered our foundation to make our platform more Responsible Social Innovation Positioning PayPal as an employer of choice by secure, supported the economic resiliency of our Business Practices Our work to realize fostering a diverse workforce and collaborative, customers, invested in the wellness of our employees and Our commitment and our mission and build inclusive culture where employees can engage strove to reduce our impact on the planet. Our employees approach to operating a more inclusive global with each other and their communities. worked together to improve their communities, deliver ethically and responsibly economy innovative solutions for our customers and instill our mission Engaging with, and positively contributing to, to democratize financial services into everything we do. the local communities in which we live and work Employees & Environmental around the world. While we are proud of the progress we have made, we also Culture Sustainability Mitigating environmental impacts to our business, recognize how much work remains to ensure that every Our embodiment of our Our efforts to manage and meeting regulatory requirements and investor individual can participate fully and fairly in the global economy. core values from the our footprint and and other stakeholder expectations. We are committed to delivering long-term, sustainable impact inside out advance sustainability for all stakeholders and invite you to join us in this effort.” 3 E.g., NYU Stern, ESG and Financial Performance: Uncovering the Relationship by Aggregating Evidence from 1,000 Plus Studies Published between 2015 - 2020, 2021.

Assessing & Prioritizing Our ESG Topics 4 Our ESG strategy is based on the periodic significance assessment and prioritization of non-financial risks and Engaging Our Stakeholders opportunities identified by our business and our stakeholders as important for PayPal’s long-term success. An essential aspect of effectively managing our key Key ESG-Related Engagement Topics Building on our ESG significance assessment conducted in 2020, we annually review our ESG significance map. ESG topics, as well as informing our significance 5 assessment, is our strategic approach to stakeholder Investors: Succession planning, executive In 2022, we reaffirmed our 18 key ESG topics, including eight designated as priorities for PayPal to drive long-term compensation, intersection of ESG and business business performance and impact based on stakeholder feedback. engagement. strategies, data privacy, cybersecurity, Board and The findings from our ESG significance assessment serve as an important input to inform how we strategically 2022 ESG engagement risk oversight deploy resources across the enterprise and refine our ESG-related programs. 4.38 rating from investors Customers: ESG approach, product education, out of 5 (+23% from 2019)6 business ethics, climate change, supplier diversity 2022 ESG Significance Map We value the regular input we receive from our global Employees: Business strategy, product innovation, Cybersecurity & workforce, customers, investors, regulators, partners, sustainability, workplace inclusion, community  CE   secure transactions engagement S  suppliers and other stakeholders in seeking to  ‚ ) E € Diversity, inclusion, continuously refine our ESG program. In late 2022, we Regulators: Cybersecurity, risk oversight, ESG n C ­ equity & belonging r  completed our second investor-focused perception e  Climate change Data privacy strategy, climate change onc mitigation study to understand how investors view PayPal’s ESG c r Partners: Civic engagement, small business e Empowering strategy, investment case and communication efforts. d Financial health support, employee wellness, climate change hol entrepreneurs, small & inclusion We observed notable improvements since our inaugural e businesses & nonprofits ak Corporate study in 2019. The feedback helped inform our latest ESG Suppliers: Business ethics, climate change, st f Employee wellness, o governance significance assessment and reinforced the importance diversity e health & safety re of aligning our financial and non-financial disclosures. g Social product e D innovation ( e Employee recruitment v i t & development c uman rights e Community engagement p Reporting on Our Progress ers Compliant, ethical & humane use of products This Report covers ESG strategies, activities, progress, metrics and performance from calendar year 2022, der P Sustainable supply unless otherwise noted. In addition to findings from our latest ESG significance review and ongoing stakeholder l chain management o engagement, we also conducted an annual benchmarking and review of industry peers and leading issuers to h e k atural resources enhance and refine our disclosures based on best practices and emerging regulatory requirements. a Business ethics t management Climate change l S adaptation This report is aligned with the Global Reporting Initiative standards, relevant SASB industry standards, the Ten a n Environmental Principles of the United Nations (U.N.) Global Compact, the Stakeholder Capitalism Metrics and U.N. Sustainable er CES t product innovation  ­€‚CE x Development Goals (SDGs). See the Appendix for specific reporting to these frameworks and a Task Force on E PayPal Perspective (Impact on business) Climate-Related Financial Disclosures (TCFD) summary. CATEGORIES: esponsible Business ­ractices Social nnovation Employees & Culture Environmental Sustainability 4 5 6 As used throughout this report, the term “significance” and variations thereof refer to significance within the context of our ESG strategies, activities, progress, metrics and performance. Such term is distinct from, and does not refer to, concepts of materiality As designated by those topics in the shaded upper Study participants provided an overall rating of 4.38 (5=excellent) for PayPal’s ESG used in securities or other applicable law, and use of such term is not an indication that PayPal deems related information to be material or important to an understanding of the business or an investment decision with respect to PayPal securities. right-hand quadrant of our ESG significance map. engagement approach, representing significant improvement from the 3.56 rating in 2019.

Maintaining Prioritizing Diverse Perspectives in Our Board & Leadership 2200222 C2 Coorrppoorraatte Ge Goovveerrnnanancce He Hiighghlliighghttss Strong Corporate We seek to ensure our Board of Directors Diversity Board is composed of PayPal ranked on Independent Board Chair with significant Governance & ESG directors who have highly Fortune’s Modern responsibilities Board 25 list of the relevant skills, professional most innovative Oversight experiences and boards of directors 11 of 12 directors are independent and all directors backgrounds, bring diverse stand for annual election Robust corporate governance practices are critical to viewpoints and perspectives and effectively represent 50% executing our business strategy and driving long-term, the long-term interests of our stockholders. Director service limited to no more than four public sustainable value creation. Our overall governance of the Board are framework is designed to drive strong oversight, The Board conducts in-depth reviews on business women and/or company boards, including the PayPal Board strategy and engages with leaders on key topics of ethnically diverse7 create Board and management accountability and interest, including business objectives, the competitive demonstrate PayPal’s commitment to transparency, Diverse characteristics considered in assessing independence and diversity. We seek to apply the landscape, capital allocation and ESG matters. Board composition including sexual orientation, same approach to the oversight, management and The Board values succession and refreshment as ethnicity, nationality and cultural background implementation of our ESG strategy. critical components of promoting and supporting the Company’s long-term strategy. The Corporate WOMEN ETHNICALLY DIVERSE MEN MEN Committed to actively seeking highly qualified Our commitment to strong corporate governance Governance and Nominating Committee women and individuals from underrepresented is detailed in our Proxy Statement, which provides (Governance Committee) regularly oversees and communities to include in the initial pool from which extensive disclosure on our Board structure and plans for director succession and Board refreshment, director nominees are chosen composition, strategy and risk oversight, stockholder in addition to reviewing executive succession Executive Leadership Diversity engagement, executive compensation and other key planning at least annually. governance topics. Annual performance self-evaluations by the full Board and each committee Incorporating ESG-Related Performance “At PayPal, we believe that sound ESG governance Majority vote standard for uncontested director into Our Executive Compensation and oversight is integral to our business and our ability to drive company performance, deliver on our 64% elections Program mission and uphold our values. Our enterprise-wide of the of Executive Building on the long-standing risk and compliance approach to responsible business management Leadership Team Stockholder right to call a special meeting ratings for each executive and the incorporation helps us drive and protect brand value, are women and/or ethnically diverse7,8 of diversity, inclusion, equity and belonging manage risk, demonstrate competitive Proxy access for qualifying stockholders (DIE&B) considerations as part of our executive differentiation, position PayPal as compensation program beginning in 2021, we an employer of choice and support continued to incorporate DIE&B actions and future opportunities for growth Strong stockholder engagement practices outcomes in our 2022 Annual Incentive Plan. and innovation.” Brian Yamasaki VP, Legal & Corporate Secretary WOMEN ETHNICALLY DIVERSE WOMEN San Jose, CA, U.S. Robust stock ownership requirements for our ETHNICALLY DIVERSE MEN MEN executives and directors 7 Ethnically diverse includes U.S. EEO-1 defined categories American Indian or Alaska Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander or Two or More Races. 8 As of December 31, 2022.

Adopting Sound ESG Governance We believe our approach to ESG management is linked to long-term value creation for our stakeholders, including stockholders, employees, customers and the communities and markets where we operate. “Our mission to create a more inclusive global The Governance Committee, comprising entirely independent directors, oversees PayPal’s ESG program and economy is central to all that we do, including regularly reports out to the Board. In addition, the Compensation Committee and Audit, Risk and Compliance in defining our global ESG strategy. Guided by Committee (ARC Committee) are responsible for oversight of ESG issues associated with their respective areas our Values and Leadership Principles, we continue of responsibility. to demonstrate how our ESG Our cross-functional ESG program is directed and managed in collaboration with executives, including our Chief strategy is a reflection of the work Financial Officer and Chief Corporate Affairs Officer, and implemented by cross-functional working groups with we do through our business, guidance and direction from the ESG steering committee. partnerships and programs to Representatives from the ESG steering committee brief Board committees and executive leadership on ESG issues support operational priorities, quarterly and meet with a subcommittee of the Enterprise Risk Management Committee at least annually to review drive impact and create value current and emerging ESG-related risk topics. for our stakeholders.” Kristina Friedman Head of Global ESG Strategy New York, NY, U.S. Committee & Wo ring rkin tee Man g G G S cutive ageme rou Oversight Management ES Exe nt p Our Board of Directors is actively engaged on Our e­ecutive management directs and ESG matters that impact business strategy. manages the e­ecution of our enterpriseide Governance • Governance Committee Oversight of ESG strategy to help ensure nonfinancial PayPal’s management of ESG topics, including riss and opportunities are appropriately overall ESG strategy, riss and opportunities, integrated across the enterprise, including staeholder engagement and programs through the Enterprise ‚is and ompliance and initiatives in social innovation and ƒanagement Program E‚ƒ Program PayPal Boar environmental sustainability Compensation o irectors •  C Committee Oversight of the ompany’s Implementation ris frameor and enterpriseide compliance  C program, including cybersecurity and privacy „n ESG steering committee and cross matters functional oring groups ith representatives • Compensation Committee Oversight of the from more than …† functions are responsible ompany’s strategies and responsibilities for overall program implementation Oversight related to human capital global talent M t management, including diversity and inclusion, anagemen pay e uity efforts and corporate culture Implementation

2022 Highlights Key Financial & Operational Metrics9 Key ESG Metrics9 $27.5B RESPONSIBLE BUSINESS PRACTICES EMPLOYEES & CULTURE in revenue 10 (+8% spot basis and +10% FXN from 2021) 26% 56% ~100K 4K+ 100% minimum eNDI diverse workforce hours employees training completion 13 435M globally representation Introduced enhanced participated in by all employees achieving our goal reaching 44% global volunteered by active accounts passwordless Data Week, double in 2022 annual to reach at least 20% gender diversity employees across (+2% from 2021) authentication for the engagement training cycle PayPal-defined eNDI and 54% U.S. ethnic our workforce our customers and from last year for our employees diversity14 employees globally12 $1.36T total payment volume SOCIAL INNOVATION ENVIRONMENTAL SUSTAINABILITY 10 (+9% spot basis and +13% FXN from 2021) $4.2B+ 2.9% $20B+ 80% ~39% 90% in access to average international to nonprofits operational emissions vendors by total renewable remittance rate and causes 15 spend energy use 22.3B capital reduction payment transactions facilitated for small- maintaining an average donated by 55M demonstrating have set or including 100% (+16% from 2021) and medium-sized international remittance customers through the progress toward committed to renewable energy businesses11 rate below 3%, aligned PayPal Giving Platform our science-based science-based sourcing for our data with the U.N. SDG targets climate targets16 centers globally 29.9K 2030 target global employees 43% 44% Select Awards & Recognitions Americas Europe & Middle East 13% JUST Capital America’s Newsweek America’s Forbes World’s Best Fortune World’s Most CDP Climate Rating A- Asia-Pacific JUST 100 Most Trusted Brands Employers Admired Companies 9 12 13 14 15 16 As of December 31, 2022. The PayPal-defined estimated net disposable income is the percent of discretionary income remaining for Global women Ethnically diverse includes U.S. EEO-1 defined From 2019 baseline. Operational greenhouse gas emissions include those emission sources covered by Scope We continue to refine our assessment methodology to 10 our employees after taxes and typical living expenses are paid. This metric is calculated through a third- and U.S. categories American Indian or Alaska Native, Asian, 1 and Scope 2 market-based method (MBM) as defined by the Greenhouse Gas Protocol and the Science-Based include vendors within relevant Scope 3 categories, Foreign exchange rate neutral. 11 party model that utilizes independent data on market-based costs across selected geographies. The model ethnically Black or African American, Hispanic or Latino, Native Targets initiative. While we observed operational GHG reductions exceeding our 2025 goal, we recognize that in including purchased goods and services, capital goods, Through PayPal Business Loans and PayPal Working was enhanced from prior periods to incorporate best practices and methodological improvements. diverse men. Hawaiian or Other Pacific Islander or Two or More Races. future years this may change as employees continue to return to the office and the Company continues to grow. business travel and upstream transportation and distribution. Capital in the U.S., U.K., Australia and Germany.

Responsible 2022 Summary Highlights Business Practices • Introduced enhanced passwordless authentication for our customers and employees. Safeguarding customer trust and operating in a consistent • Revised our enterprise risk categories to reflect our “The industry faces pressure to prioritize and ethical manner are vital to achieving the Company’s latest risk assessment. speed and efficiency over effectiveness long-term business strategy. These efforts are underpinned and safety. At PayPal, we know that by our approach to risk management and oversight, • Established five principles for Responsible Artificial our biggest currency is trust — with including policies and standards to protect our customers Intelligence (AI). customers, regulators, employees and and platform. other stakeholders — and now is the time to focus on continuing to invest in our risk Across our enterprise, we are committed to the goal management practices and of responsibly managing our infrastructure, protecting 4K+ 50+ prioritize safe and secure customer data, efficiently managing our supply chain employees attended sessions products for all.” and advocating for policies that promote the interests of our customers, employees and communities. during our third annual Data Week Andrea Donkor SVP, Global Regulatory Relations and Consumer Practices, PPI Chief Compliance Officer New York, NY, U.S. by all employees 100%in 2022 annual training completion training cycle In This Section SDGs Reflected in This Section • Managing Risk & Compliance • Enabling Effective Cybersecurity Management • Enriching Global Data Management & Privacy Oversight • Upholding Business Ethics

Managing Risk & Compliance We apply the Three Lines of Defense model for In addition, we formally mapped and integrated key Setting Strong Business Resiliency risk management, which consists of management, ESG topics and programs into our enterprise risk Practices & Policies oversight and independent assurance. Our executives taxonomy and strive to continually enhance our risk are responsible for assessing and managing risk management approach globally. For example, in We take an enterprise-wide approach to business with independent guidance and oversight from our 2022, in collaboration with our teams across Europe, resiliency in order to manage and minimize the impacts company-wide Risk and Compliance Oversight we identified an initial set of risk metrics to evaluate of a disaster or other incidents that may disrupt PayPal function. Our Board of Directors is responsible for environmental risk management in the region, in business functions, IT systems, customers and the overall risk assessment and management oversight, accordance with legal requirements. broader financial sector. Our PayPal Resiliency Program with the ARC Committee overseeing and reviewing is designed to reduce continuity of operations risk, our overall risk management framework. Our Internal enable mitigation of potential impacts, prepare teams to Audit program seeks to provide independent assurance respond effectively, maintain operations during periods and is externally assessed by the Institute of Internal of disruption and safeguard employee welfare. This Auditors (IIA) to conform with the IIA Code of Ethics program applies across PayPal and its subsidiaries, and Standards. as well as to third parties acting on our behalf. Protecting the Health & Safety of Our Enterprise Risk and Compliance Management Aligned with the ISO 22301 standard, the Federal Our People Program (ERCM Program) reflects PayPal’s Financial Institutions Examination Council and other PayPal Global Safety and Security teams are tasked programmatic approach to identifying, measuring, governmental regulatory standards, our Enterprise with monitoring, evaluating and responding to acute managing, monitoring and reporting key risks facing Resiliency Policy outlines scenario planning procedures, and chronic physical risks to our operations, including our Company. In 2022, we revised our enterprise risk functional roles and responsibilities, reporting extreme weather and other events, as part of our categories to reflect our latest assessment. expectations and documentation management for incident response procedures. business continuity and disaster recovery at PayPal. Our risk management committees oversee the This includes: We also develop and implement risk management implementation and execution of the ERCM Program, procedures and programs related to the personal including the Enterprise Risk Management Committee • Regular training for identified Incident Response safety of employees, including accident and injury (ERMC). The ERMC is the highest-level risk management Team members across business functions. prevention, wellness promotion and compliance committee and is co-chaired by PayPal’s Chief Risk • Requirements for at least annual tabletop exercises with applicable environmental and health and safety and Compliance Officer and Chief Enterprise Services and testing to provide ongoing readiness. laws and regulations. PayPal’s Environmental Health Officer, which regularly review and discuss the overall • Recovery and restoration protocols following & Safety (EHS) Policy & Procedures align with the effectiveness of the ERCM Program with the ARC an incident. ISO 45001 standard, apply to all PayPal facilities and Committee and the full Board. To further reinforce the functional areas and detail the requirements, roles link between our governance of ESG matters and our and responsibilities related to environmental health risk management programs, we regularly report on and safety risks, controls, monitoring, reporting and emerging ESG trends to a subcommittee of the ERMC. escalation. We are committed to continuing to improve our EHS program and regularly conduct reviews to facilitate compliance with relevant national and local EHS regulatory requirements.

Enabling Effective Cybersecurity Management The security of our customers and platform is one of our top priorities. We continue to implement a proactive security Securing Our Customers & Platform philosophy intended to provide strong oversight structures to achieve our security goals. Our Chief Information Security Officer (CISO) oversees our cybersecurity management function across our global enterprise, with Board We continue to invest our time and resources in oversight from the ARC Committee. As part of our ERCM Program, our Information Security Program is designed to strengthening the security of our products and services support the Company in identifying, protecting, detecting, responding to and recovering from cybersecurity threats. to remain one of the world’s most trusted payment platforms. PayPal’s Collaborative Approach In 2022, PayPal implemented enhanced passwordless Prioritizing External Validation & authentication for our customers through the Engagement on Our Information to Further Customer Protection introduction of passkeys and for employees accessing Security Program PayPal’s unique two-sided network gives us the devices and applications that leverage corporate- opportunity to enhance customer protection through managed identities. See our Social Innovation section Our commitment to security is evident in our a combination of sophisticated risk models, fraud for more information. efforts to adhere to industry best practices detection and data security controls. PayPal’s Incident Management process provides a and alignment with top frameworks such as coordinated approach to promote effective and timely the NIST Cybersecurity Framework and ISO PayPal’s cybersecurity teams, in coordination with the risk response and management of highly impactful 27001 certification. Reinforcing our dedication Cyber Defense Center, defend against and mitigate events. Our program aims to prepare us for a range of to maintaining high standards, we have proudly risks to the availability of our systems, as well as protect incidents we may encounter, including those pertaining served on the Board of Advisors for the Payment the data we process and store. PayPal’s anti-fraud to technology, fraud, cybersecurity, security and our Card Industry (PCI) Security Standards Council teams, in coordination with the Fraud Defense Cyber brand. We focus on quick and effective mitigation of since 2015. Center, focus on operationalizing fraud intelligence to incidents, restoration of services, recovery of impacts, PayPal’s internal audit and oversight testing proactively prevent fraud and abuse and mitigate risk as well as communications and root cause and functions regularly review our information security to our products, services and customer data. corrective feedback mechanisms. programs. In addition, our information security Protecting our customers and platform is a joint effort Maintaining PayPal’s Thorough Cyber PayPal helps protect customers from phishing through program is externally validated, including annual of these crucial functions. Our security and fraud Attack Risk Response Process security awareness initiatives, proactive phishing site audits conducted by independent third parties teams work alongside customer support to collaborate In addition to cyber threat monitoring and takedowns and improved phishing detection across the covering ISO 27001, PCI-DSS, PCI-P2PE, PCI PIN, and share insights to empower internal and external quarterly cybersecurity risk assessments, we ecosystem. For example, last year we published a new SOC-1 and SOC-2. We also actively contribute partners to enhance PayPal’s customer and data review and conduct exercises on our disaster consumer awareness video tutorial on how to detect to security standards through PCI and remain protection capabilities. We perform 24/7 monitoring and recovery and business continuity plans at least and report phishing to PayPal. In 2022, we also released engaged with governments worldwide to stay measurement to promote system reliability and maintain annually. We have an established breach response findings from our two-year research project on new abreast of evolving threats and manage risk. the integrity of PayPal’s production and corporate process to protect the integrity of PayPal’s techniques to defend against advancements in phishing environments. platform. websites at the ACM Computer and Communications Security Conference.

Partnering to Advance Security & Safeguarding Our Platform & Protection Capabilities Delivering a Wide-Ranging Bug Customers from Illegal Activity Bounty Program PayPal is actively involved with organizations to support We continuously work to combat and prevent the illicit the advancement of the security ecosystem and PayPal partners with HackerOne’s global use of our services and strive to make our platform improve customer protection. Current memberships community of independent security researchers, safe and secure for all to use. We devote significant and sponsorships include the Anti-Phishing Working who help to make our products and services resources globally to financial crime compliance and Group (APWG), Financial Services Information Sharing more secure. We hosted our third annual refer cases to assist law enforcement officials in their and Analysis Center, FIDO Alliance, Women in LiveHack Event in 2022, to bring together PayPal efforts to identify, investigate and stop illegal activity. Cybersecurity, World Economic Forum’s Centre security engineers, external researchers and the for Cybersecurity and National Cyber-Forensics HackerOne triage team to find and remediate We also seek to amplify our capabilities beyond PayPal Training Alliance. vulnerabilities in real time within PayPal’s internal through multisector partnerships and initiatives and look applications. We also held an internal Bugfest for new opportunities to utilize our data, relationships In 2022, we contributed to continued research with event, where PayPal engineers from across and investigation teams to further protect our customers leading research groups, peer companies and the globe collaborated in person and virtually and communities. We employ our expertise to identify, universities to support a more secure digital economy to improve the security, functionality and user interrupt and enable prosecutions for those who traffic for all, including: experience of our products. fentanyl, opioids and other drugs, launder money, • Finalizing research with Georgia Institute of defraud customers, engage in human trafficking and Promoting Awareness & Education Technology, resulting in the development of risk child exploitation and enable terrorist activities. For for Employees signals to help prevent fraud in a passwordless example, as a member of the Tech Coalition and authentication environment. ICMEC’s Financial Coalitions, we work collaboratively Our Information Security Training and Awareness to protect children from online sexual exploitation and program focuses on employee development and • Partnering with the Official Monetary and Financial abuse. This partnership model will continue to be an education, the needs of the enterprise and the shifting Institutions Forum to publish The Role of Data important lever in contributing to the work of stopping cyber-threat landscape. In addition to required annual Science in Maintaining Trust and Responsible global financial crimes. information security compliance training for all Innovation, underscoring how data can be used employees and contractors, we offer ongoing learning effectively to protect consumers from fraud and “ As a founding member of ICMEC’s U.S. and APAC opportunities to increase security awareness across improve the quality of the user experience. Financial Coalitions against Child Sexual Exploitation PayPal, with specific educational programs for our • Continuing our work with the APWG and presenting and a long standing partner of more than 15 years, engineers. findings on pervasiveness of scam websites and the PayPal continues to graciously share knowledge, Our 2022 Cybersecurity Awareness Month included protections that can be implemented to help prevent time and expertise with financial industry peers to various activities, including our third annual internal these sites from reaching users at the 2022 eCrime help counter child sexual exploitation and abuse Security Conference. We engaged with our employees Conference. online. The company’s generous financial and in-kind globally throughout the month, providing a broad • Collaborating with North Carolina State University support is vital to furthering range of opportunities to expand their security to improve customer protection by measuring our global efforts to make knowledge and awareness. and supporting the prevention of abuse of the world a safer place for all children.” Bindu Sharma telecommunication infrastructure in phishing Vice President, Global Policy & Industry Alliances attacks and scams. Managing Director, Asia Pacific International Centre for Missing & Exploited Children

Enriching Our Fortifying Our Approach to Data Strengthening Our Global Privacy Hygiene Program & Policy Infrastructure Global Data The EDG Program aims to proactively drive consistent Our Global Privacy Program guides and supports the and standardized internal data management practices business based on our Data Management Principles Management and processes to strengthen trust and confidence and Privacy by Design practices and helps to ensure in PayPal’s data, support future business growth and that our privacy program is in compliance with the & Privacy Practices achieve Company objectives. We deploy data quality evolving global privacy landscape and regulatory measurements and monitoring to protect critical data guidance. The Global Privacy Program includes the We work to embody a data- and privacy-aware identified across the Company. execution of the privacy risk assessment process, culture that prioritizes responsible use of data through PayPal’s EDG Program supports end-to-end data preparation of the Annual Privacy Plan, privacy transparency, education, enterprise standards and management, from collection to disposal. The team monitoring and testing, issue management and training. innovation. PayPal has established a tiered governance collaborates with functions across the business Based on our Data Management Principles, PayPal structure to drive data management best practices and and helps establish practices in accordance with strives to maintain strong oversight and standards on accountability across the Company. For information on our industry-aligned enterprise data management central tenets of data privacy, including notice and how we empower and educate our customers on data framework, which includes data quality, accountability, transparency, choice and consent and data lifecycle privacy see Social Innovation. 17 stewardship and risk management. Our Enterprise Data management. Our program is focused on driving Our Enterprise Data Governance (EDG) Program, Governance Policy and associated documents align awareness and enabling our teams to consider these Our Board and senior management review the Annual included in the office of the Chief Information Officer, with this overarching framework. principles in strategies and decision-making processes Privacy Plan and management provides periodic advances our enterprise data management and Also in 2022, the Data Management Oversight function related to the collection, use, minimization and sharing reporting to the ARC Committee, the ERMC and others governance activities. Our EDG Program partners with 18 as appropriate on the strategy, implementation and developed additional internal policies to enhance of data. All employees, contractors and third parties are the Global Privacy and Data Management Oversight our data management risk oversight and regulatory required to follow the Enterprise Record Retention policy effectiveness of privacy risk management, including function, led by our Chief Privacy Officer, which is compliance controls, including formalizing policies that defines our practices on the storage and retention reports on emerging trends and topics, privacy-related independent from the business, provides oversight as on open banking and data localization. The team also of data. See our Legal Hub and Privacy Statement for audits and examination highlights and privacy impact part of the ERCM Program, and is ultimately overseen by developed risk statements to identify, establish and additional information. assessment results and escalations. the Board through its ARC Committee. document accountability, controls and risk mitigation PayPal’s internal audit function conducts independent practices on relevant data management risks. “Establishing trust in technology requires maintaining reviews of the data management and privacy programs data responsibly, and with the utmost integrity. At and assesses the effectiveness of governance, risk Data Management Principles PayPal, our Enterprise Data Governance Program does management and controls. Additionally, all PayPal this through the implementation of robust systems, employees and contractors are required to complete oversight and controls that promote accountability, annual training on privacy and data management, and, Management Notice & Choice & Security Data Lifecycle Data Quality Stewardship Standardization transparency and risk management. By Transparency Consent Management17 66 in 2022, PayPal held its first annual data stewardship incorporating privacy into our design training. process, and maintaining a strong culture of compliance, our program seeks to uphold the highest standards of data management.” Archie Deskus EVP, Chief Information Officer Spring, TX, U.S. 17 Data lifecycle management includes collection, use, retention, disposal, sharing, transfer, access and quality. 18 As noted in our Privacy Statement, we will only share customer information with third parties if the information is necessary for the business and the customer is properly informed.

Executing Data Privacy Due Diligence on Third Parties PayPal seeks to conduct due diligence on third parties’ privacy policies and data protection safeguards, Committing to Responsible AI Practices including for potential acquisitions and strategic investments, to help ensure the controls are consistent As industry moves toward adopting more Artificial Intelligence (AI) “To innovate responsibly means with PayPal policies and applicable laws. The process systems, PayPal is committed to promoting the responsible use of this we must think deeply about involves review of internal and public-facing policies technology across our business. We’ve established a Responsible AI the impacts of technology on and practices, internal systems that access or store Steering Committee consisting of cross-functional representatives our customers’ lives, so that data, data security reports, data processing registrations who oversee AI-related developments and provide regular updates to more people reap the benefits and submissions to relevant governmental bodies to our Chief Risk and Compliance Officer for appropriate escalation of innovation, while providing understand past and current data practices. to our ERMC and Board. governance and mitigating We have established five principles of Responsible AI, which unintended risks and potential Partnering to Advance Privacy by Design are aligned with global regulators’ guidance. We have taken a harm. At PayPal, we take an risk-based approach to adopt these principles by prioritizing intentional and rigorous approach PayPal’s Global Privacy team is collaborating with potentially high-risk AI applications. to deploying the Center for Financial Inclusion at Accion, an technology to ensure independent global think tank that uses research Five Principles of Responsible AI: the protection and advocacy to advance inclusive financial and trust of our systems for low-income people around the world. customers.” Through this partnership, we are exploring the Jean Chong intersection of digital finance and data privacy VP, Financial and Model Risk Oversight New York, NY, U.S. and working to create a free, implementable toolkit for fintech companies to embed privacy Explainability Transparency Fairness Privacy Security PayPal ranked #38 on Newsweek’s principles into the design of their financial America’s Most Responsible products and services. Companies list Driving a Data-Responsible Culture In 2022, PayPal employees hosted and attended our Fifty-five teams composed of 175 participants submitted third annual Data Week, which helps build employee their ideas to the Data Week hackathon showcasing awareness of the latest advances in data topics and their dedication to effective data management across continues our culture of data responsibility, privacy the Company and to our core values of Innovation and and strong data governance. Over 4,000 employees Collaboration. participated live across 52 sessions around the world, double the engagement from 2021.

Upholding Business Ethics Our Code of Business Conduct & Ethics (Code of Our Speak Up culture is espoused by our leadership and appropriate next steps, which may range from control Conduct), available in 14 languages, provides guidance actively promoted by the Ombuds/Ethics team through 100% environment enhancements to termination. for our employees, directors and everyone working for outreach and awareness sessions. Our Chief Risk and In 2022, we continued to build awareness of ESG PayPal and its subsidiaries on ethical and responsible Compliance Officer provides periodic updates to the employee completion of considerations with internal stakeholders across behavior. We refresh the Code of Conduct at least ARC Committee on significant program metrics and 2022 annual training19 the vendor lifecycle. We also conducted one-on- annually to reflect our latest programs, policies and investigations. one engagements with high-impact suppliers on expectations. Our most recent update incorporated We require every employee and contractor to complete Managing Our Supply Chain climate change and continued our efforts to support our new Leadership Principles. our annual training, which covers areas such as our supplier diversity. Read more about how we engage Code of Conduct, anti-money laundering, information Responsibly our vendors on diversity and climate change in security awareness, data privacy, anti-bribery and Due to the digital nature of our business, our supply Employees & Culture and Environmental Sustainability, Our Code of Conduct reinforces that we are all corruption, safety and security and sexual harassment chain consists primarily of the procurement of various respectively. empowered to speak up or seek advice without awareness and prevention. In addition, upon joining direct and indirect goods and services (such as IT fear of retaliation. Employees have multiple PayPal and annually thereafter, our employees must infrastructure, marketing, real estate, consulting and Committing to Political Transparency avenues to share their concerns or ask questions certify that they understand and will comply with the labor) and corporate partnerships. We work with a anonymously. Code of Conduct. small number of third parties to manufacture goods PayPal’s commitment to pursuing transparent (e.g., Zettle card readers) and do not manufacture disclosure and strong governance extends to our WHEN to speak up: Beyond our Code of Conduct, we require all employees, anything directly. lobbying and political transparency policies and third parties and other stakeholders such as contingent practices. We adopted many of the best practices Culture Workplace Safety Misconduct workers to abide by our enterprise policies, including Across our value chain, we seek to partner with third put forth by the Center for Political Accountability in our Conflict of Interest, Ethics Reporting and parties who share our commitment to business ethics. their Zicklin Index and in 2022, we maintained our Whistleblower and Anti-Bribery and Corruption All third parties and subcontractors are expected to 20 HOW to speak up: comply with our Third Party Code of Conduct & Ethics, “Trendsetter” categorization. policies. Call the confidential Integrity Helpline which sets forth our expectations regarding human and The Governance Committee oversees our political available 24/7 in multiple languages Respecting Human Rights labor rights, environmental responsibility, anti-bribery contributions, lobbying expenditures and interactions Escalate concerns or questions and improper payments, occupational health and safety, with government officials. To provide consistency with with their manager or HR business partner Our Code of Conduct outlines our commitment to consumer protection, financial crimes compliance and the Company’s business objectives and public policy managing potential human rights risks and opportunities other requirements. priorities, at least annually the committee reviews and Email the Ombuds/Ethics team across the Company, which is informed by our initial discusses with management our political activities directly using the dedicated Speak Up human rights impact assessment completed in 2021. Our third-party risk management program works to and expenditures, including those of the PayPal email alias Additionally, our Joint U.K. and Australia Modern Slavery establish appropriate risk-based due diligence for new Political Action Committee, as well as Company- Statement highlights the steps we have taken to mitigate and existing suppliers based on the potential risks and related guidelines and policies. To find out more Engage a Business Ethics Officer and prevent modern slavery and human trafficking impacts of their product or service to our business. We about PayPal’s lobbying disclosures and political in their local office practices across our Company and value chain. aim to hold our third-party partners to high standards transparency practices, please visit our Government of risk management and ethical behavior, and review Relations website. and investigate potential noncompliance to determine 19 Does not include exempt employees that are on leave during the due date of trainings. All training is tracked internally through PayPal’s Learning Management System. 20 Companies that receive a score of 90 or above indicating robust disclosure and oversight are identified as “Trendsetters” in the CPA Zicklin Index.

Social 2022 Summary Highlights Innovation • Offered new products and services to help consumers save on everyday purchases and advance long-term Facilitated over 1.2 million Economic opportunity is core to our mission at PayPal — financial goals through PayPal Rewards, PayPal Savings loans to small- and medium- it influences the products we create and the partnerships and responsible Pay Later solutions. sized businesses (SMBs) we form and enables us to create stakeholder value by • Through our Economic Opportunity Fund’s investments 1.2M since 2013, resulting in expanding our services to meet our customers’ needs. in 19 venture capital funds, we supported over 250 loans access to more than $25 early-stage companies, many with diverse founders. billion in capital, including We are committed to transforming the digital payments $4.2 billion in 2022.22 ecosystem to advance the success of businesses and • Over 1 million accounts enrolled in passkeys since individuals around the world, driving opportunity for launch in October 2022. the underserved and underbanked to support our • Expanded our automated self-service portal globally to Assisted 55 million customers communities and leveraging our platform to promote customers in over 200 markets to help them exercise $20B+ in donating over $20 billion global generosity. This year, we introduced and their individual right to manage their personal data and in funds to nonprofits and enhanced our product offerings to continue to provide marketing choices, as applicable.21 customer merchants, entrepreneurs, consumers and nonprofits donations causes globally. the tools they need to thrive in the digital economy. • Enabled more than $600 million in humanitarian aid and refugee support in Ukraine through PayPal and our partner platforms. In This Section SDGs Reflected in This Section • Promoting Economic Opportunity for SMBs & Entrepreneurs • Advancing Financial Health & Consumer Convenience • Maintaining a Safe Platform for Customers • Creating More Ways to Give 21 Deletion is available in select markets for accounts in good standing that meet applicable record retention timeline requirements. 22 Through PayPal Business Loans and PayPal Working Capital in the U.S., U.K., Australia and Germany.

Promoting Economic Facilitating Small Business Lending Investing for Fintech Innovation This year, we added to our credit offerings with the In 2022, we reached a new milestone of facilitating Through PayPal Ventures, our corporate venture capital 23 access to over $25 billion in capital for SMBs since arm, we strategically invest in promising financial Opportunity PayPal Business Cashback Mastercard, which enables small business owners to get unlimited 3% cash back on 2013 through more than 1.2 million loans as part of our technology, commerce, infrastructure and blockchain for SMBs & all PayPal purchases and 2% cash back on everything merchant financing solutions, including PayPal Working startups to help bring transformative solutions to market. 26 else with no annual fee, so they can earn rewards on Capital and PayPal Business Loans. To expand our Since its inception in 2017, PayPal Ventures has made Entrepreneurs purchases to reinvest in their business.24 reach and support SMBs in new markets, this year we more than 65 investments totaling $1.35 billion. New We launched the Venmo Business Grant Program, launched PayPal Working Capital in France and the investments in 2022 included the following: We believe our platform, products and services an initiative designed to support emerging and small Netherlands. • Forage builds payments infrastructure that processes can help to support the operations and growth of business owners using Venmo Business Profiles. Twenty government benefits, starting with SNAP EBT (food entrepreneurs and SMBs. Beyond providing SMBs with finalists each received a $10,000 grant to use toward $4.2B+ $25B+ 1.2M+ stamps) online, enabling 42 million Americans to a suite of business-critical products and services, we business expenses, as well as technical spend their food benefits on the internet. also establish partnerships, conduct research and advice and mentorship from PayPal and 2 million+ in access to in access to loans to SMBs advocate to enhance opportunities for businesses Venmo capital for SMBs capital for SMBs since 2013 • Northstar makes it easier for employees to access globally, particularly those businesses from historically Venmo employees and our partners Start Business in 2022 since 2013 affordable, personalized financial advice by working Small, Think Big and Taproot Foundation. Profiles25 underserved and underbanked communities. with leading companies to provide financial wellness We enhanced PayPal’s complete payments solution for Supporting Sun Market Through a tools. Supporting SMBs With New Products SMBs, providing simplified checkout options and more Venmo Business Grant • Paymob develops financial technology solutions that & Partnerships payment choices to improve customer experience and power millions of transactions and fuel the growth of help drive checkout completions. Sun Market provides access to organic, locally businesses of all sizes across the Middle East, Africa We expanded the global availability of select products to grown and affordable produce for food-insecure and Pakistan. help deliver a flexible in-store checkout experience by: Happy Returns partnered with Shopify to launch communities. As a Venmo Small Business Grant Return Shopping, a free feature allowing Shopify recipient, founder Gabbie Atsepoyi • Xepelin created a financial services platform to help • Extending the availability of the Zettle Terminal mobile merchants, many of whom are SMBs, to re-engage will now be able to sell produce provide fair and efficient access to resources and point-of-sale device to merchants in the U.S. customers during the return process. Merchants can at half price to families, build capital for SMBs in Latin America. • Launching Tap to Pay with Zettle by PayPal for SMBs waive processing fees on returns and offer customers another storage facility and create in the Netherlands, Sweden, the U.K. and additional discounts to incentivize the purchase of new items an online marketplace to extend markets across Europe, enabling individual sellers from their websites. It also helps merchants simplify access to fresh produce. Gabbie Atsepoyi “ While one in eight Americans receives government and small businesses to accept contactless payments their accounting and financial reporting by keeping Founder, Sun Market assistance to buy groceries, until recently, recipients in person on their Android mobile devices with no the transactions separate. Venmo Business Grant Recipient were unable to use their benefits online. At Forage, additional fees. our mission is to democratize access to government benefits, and PayPal Ventures’ funding will help us Delivering Efficient Payments to Freelancers to expand the acceptance Learn more about SMBs that have of SNAP EBT payments found success with the help of With Mastercard, we introduced the Hyperwallet Original Credit Transaction, online for low-income PayPal products by visiting our which supports large businesses and marketplaces in delivering quick Americans.” Ofek Lavian Small Business Spotlight series. and secure payments to contract workers, freelancers and others, helping Co-Founder & CEO, Forage payees receive earned money almost instantly. The service launched in select markets in Europe in 2022. 23 24 25 26 PayPal Business Credit Card is offered Purchases and other transactions subject to credit approval. See the Business Cash Rewards Terms and Conditions for details. To earn Business Cash Since launch through The lender for PayPal Working Capital, PayPal Business in collaboration with Concerto Card Rewards on eligible purchases, you must have an open Business account with PayPal to which your Business Card is linked. If your Business account with December 31, 2022. Loan and PayPal Loan Builder is WebBank. Company and WebBank. PayPal is closed for any reason, you will no longer be able to earn Business Cash Rewards and will forfeit any remaining Business Cash Rewards balance.

Enabling Opportunity for Underserved Championing Women’s Economic Equity Partnering to Drive Impact Businesses We believe we have a responsibility to promote the Celebrating the Legacy of Maggie In 2022, we began new partnerships and extended We continue to build on our work to support small role of women in the financial system and advance Lena Walker existing relationships to support underserved businesses, particularly those from underserved and economic equity through our resources, platforms For the second year, PayPal honored the legacy communities in the U.S., including: underrepresented communities, including Indigenous, and tools. As the private sector lead for the of Maggie Lena Walker, the first Black woman — • Continuing to support The Southern Communities Black, Latinx and women-owned businesses globally. Economic Justice and Rights Action Coalition of the and first woman — to charter and lead a U.S. Initiative (SCI) in the deployment of corporate U.N. Women’s Generation Equality Forum, we made bank, with the Maggie Lena Walker Awards, resources into communities across the southern Working to Expand Access to Capital Through a commitment of $108 million to advance financial which acknowledge the achievements of women U.S., home to over 50% of all African Americans. the Economic Opportunity Fund inclusion and economic empowerment for women who work to provide economic opportunity in and girls by 2026. In 2022, we made progress by: underserved communities. • Joining the Corporate Advisory Council of the We continue to make targeted investments through National Center for American Indian Enterprise our Economic Opportunity Fund (EOF), a $500 • Funding technical assistance and research with Achievement Award recipient Development, which is focused on supporting million commitment to leverage treasury deposits Women’s World Banking on topics such as identifying Connie Evans was the founding Indigenous-owned businesses and tribes through and fund investments to increase access to capital gender biases in credit scoring. president of the Women’s Self- access to economic opportunity. for underserved communities. We have created a • Signing on to the U.S. Department of Commerce and Employment Project, the first and • Participating as founding members of the sustainable investment strategy focused on meeting the Office of the U.S. Trade Representative’s Indo- largest urban microbusiness Connie Evans Small Business Digital Alliance, a public-private our treasury requirements of preserving capital and Pacific Economic Framework for Prosperity (IPEF) development organization in Achievement Award co-sponsorship between the U.S. Small Business generating returns, while supporting an enhanced flow Upskilling Initiative and pledging to provide women the U.S., and the first Black Recipient Administration (SBA) and the nonprofit Business of institutional capital toward traditionally underinvested and girls in the IPEF emerging economies with woman elected to serve on Forward Inc. aimed at promoting America’s economic communities and businesses. For example, in 2022, we: 500,000 or more upskilling opportunities in 10 years. the Board of the Federal Reserve Bank of competitiveness by connecting entrepreneurs with • Renewed $90 million in deposits to OneUnited • Providing 11,000 employee volunteer hours in support Chicago. Under her leadership, the Association critical digital tools and resources. Bank and Optus Bank, two Black-owned banks and of women and girls globally, surpassing our goal of for Enterprise Opportunity expanded to represent more than 2,600 microbusiness development • Celebrating the 5th Annual PayPal Small Business Community Development Financial Institutions. 10,000 hours in the first year.27 Month by providing educational resources to practitioners and advocates for economic • Invested in two new funds, including the BlackRock • Utilizing the 2X Criteria in our treasury portfolio to opportunity for underserved entrepreneurs. entrepreneurs, including by leading discussions with Impact Opportunities Fund. identify investment funds and financial intermediaries SMB thought leaders and policymakers, and providing To read more, see Values in Action. that support women’s economic interests. SMBs dedicated support through our Business Resource Center. • Collaborating with Supporting Underrepresented Minority Founders & Investors EOF portfolio companies Reimagine Mainstreet The 19 minority-led and geographically diverse venture capital funds we invested in through our EOF deployed nearly globally through our and several Chambers of 250+ investments in venture Commerce, conducting $300 million in capital to over 250 portfolio companies globally, often benefiting minority and female-led businesses. capital funds Our fund-of-funds investment approach helps expand the reach of PayPal Ventures by geography, industry and market a survey of more than segments. We also launched a diversity survey with our general partners of EOF venture capital funds to understand how of portfolio companies 2,500 SMBs and hosting with at least one ethnically our investments help to advance a more diverse venture capital ecosystem.28 ~55% diverse founder29 a virtual panel discussion with the SBA on small business trust in financial Through the EOF, PayPal is an anchor investor in Zeal Capital Partners, a venture capital firm that invests in diverse management teams at early- of portfolio companies institutions and expanding access to capital. stage businesses in the fintech and future of work verticals. Learn more about how the fund is expanding opportunities for entrepreneurs of color. ~50% with at least one woman founder30 27 28 30 Hours of capacity-building and skill-based volunteer activities, such as mentorship and career readiness Survey looked at jobs created, diverse employees, consultants and service providers among other aspects of the funds. Based on 2021 EOF investments. Compared to 2% in traditional investment funds, per training, contributed to charities that advance gender equity and economically empower women. 29 Bloomberg, Female Founders Raised Just 2% of Venture Capital Money in 2021, 2022. Based on 2021 EOF investments. Ethnically diverse includes Black, Latinx, Native American and Pacific Islander.

Advancing Financial Health & Consumer Convenience Democratizing financial services means creating an Helping Consumers Save Offering Responsible Global Pay inclusive digital economy where everyone can thrive, Later Solutions especially those traditionally underserved by the Consumers faced a challenging economic financial system. We’re using our platform and products environment in 2022. At PayPal, we’re working to help To help consumers more easily purchase the larger to support financial flexibility so that consumers around them save on everyday purchases and advance long- items they need and want, PayPal offers a suite of the world can easily and efficiently save money and term financial goals through: Pay Later products that allow customers to extend manage their finances.31 payments over weeks or months with no late fees. • PayPal Rewards and PayPal Honey mobile Safari 33 Through Paidy, our In 2022, we enhanced our platform with new and extension, which enable Nearly 90% of PayPal updated services that support individuals’ ability to consumers to earn points that Honey users Enabling Easier Checkout Buy Now, Pay Later Pay Later users they can apply at checkout, saved over $200 offering in Japan, we’ve selected ready funds37 save, make flexible payments and more conveniently million in 202234 make purchases. convert to cash, donate or Consumers value secure options at checkout expanded flexible for repayment. transfer to their bank. and we continue to build partnerships with spending options • Building on the success of the cash back features some of the largest digital payments and for consumers, including: of the Venmo Credit Card, we launched the PayPal ecommerce platforms to expand our network • Partnering with Amazon to launch 6-Pay, allowing PayPal digital wallet is Cashback Mastercard® of in-person and online payment options. to provide more flexibility consumers to split the cost of purchases into six accepted by 79% of largest for consumers to make smarter purchases and • We provided Amazon U.S. customers the interest-free monthly installments, and introducing 79% retailers in North America maximize rewards when shopping on PayPal. ability to pay with Venmo, offering another Paidy as a payment method when checking out and Europe.32 • PayPal Savings Account allows U.S. customers to checkout option and delivering the added with Amazon Pay. earn significantly higher interest on savings than benefit of the Venmo Purchase Protection • Introduced the Paidy 35 Program. a traditional savings account, helping customers Real Card, which 4.4M reach their financial goals faster. • We extended our partnership with Live allows shoppers to pay “PayPal is really about giving people the • We expanded Xoom’s Debit Card Deposit feature, Nation so customers can continue to in-store with Paidy, Paidy users in 2022 power to manage their money, stretch now available in 27 markets across Europe, Latin check out with PayPal or Venmo when choosing the number (+25% from 2021) their dollar further and make life simple America, the Middle East and Asia, enabling more purchasing tickets for sporting events, of payments and by giving them a single destination to customers to make low-cost music festivals and more. settlement terms best for their financial needs. access their finances.” international money transfers to 2.9% average • Launched a new feature, Pay Now, where Derek Francom friends and family to use however international customers can pay their next installment at a Senior Director, PayPal Debit Cards remittance Scottsdale, AZ, U.S. they need, including paying bills cost in 202236 convenience store at any time. or buying groceries. 31 35 We rely on third parties in many aspects of our business, including networks, banks, payment processors, As of April 12, 2023, the annual percentage yield (APY) for PayPal Savings is 4.15%. This is a variable rate and can change at any and payment gateways that link us to the payment card and bank clearing networks to process transactions; time, including after the account is opened. National average source: FDIC National Rates and Rate Caps as of April 17, 2023. unaffiliated third-party lenders to originate our U.S. credit products to consumers, U.S. merchant financing, PayPal is a financial technology company, not a bank. Banking services provided by Synchrony Bank, Member FDIC. and branded credit card products; branded debit card and savings products issued by unaffiliated banks. 36 Continued to remain below the 2030 target of 3% set in the U.N. Sustainable Development Goals. 32 37 Digital Commerce 360 – 2022 North America Top 1000 and Europe Top 500 databases. Ready funds are considered those connected to a bank withdrawal or debit card and help customers maintain healthy spending 33 Available on Safari iOS 15+. habits without depending on credit to repay their installment loans. 34 Analysis of internal PayPal data, January through September 2022.

Maintaining a Protecting Consumers Against Bad Actors Helping Our Partners Advance Fraud Targeting Accuracy Safe Platform for Consumers must navigate a growing digital landscape, with increasingly difficult-to-detect fraud threats. Our The Enhanced Decisioning Data platform Customers risk detection organization strives to continuously launched by Capital One, in partnership with enhance the safety of our platform for our customers, PayPal, helps fight online fraud by combining We strive to promote good habits to safeguard protect against fraud attempts and manage transaction transaction information with Capital One’s customer data through education and resources. losses. We are also focused on educating consumers internal data models, increasing the accuracy of With new threats emerging daily, we are focused on and, where possible, recovering funds when fraudulent fraud targeting as well as approval of legitimate empowering consumers to manage their data and events occur. transactions. protect themselves from fraudulent activity. Our fraud risk management capabilities focused on Strengthening Customer Control preventing bad actors from entering our ecosystem aim Facilitating Transparent Consumer Protection to continuously evolve, including through continued of Data enhancement of our Fraud Defense Cyber Center and With online scams up 87% since 2015,41 we believe it We introduced new ways for consumers to take control protection of customer identity. Our buyer and seller is critical to protect our customers from bad actors of their data, including managing how people find them protection programs protect merchants and consumers across our platforms. According to the BBB Institute for ® on PayPal, accessing what they’ve shared with other from fraud and counterparty nonperformance. These Marketplace Trust’s 2022 BBB Online Scams Report, sites and more. We continue to update our Privacy Hub combined efforts helped us maintain our low transaction consumers who reported paying with PayPal were loss rate39 more likely to get their money back than other online and Security Center to reflect best practices and help Enabling Passwordless Authentication of 0.09% in 2022. build customer awareness. payment systems. We enable secure, passwordless login to PayPal 39 accounts across platforms and devices with passkeys, Annual Transaction Loss Rate Protecting Against Elder Financial Abuse We also continued to expand our automated self- a new industry standard to replace passwords with (% of Total Payment Volume) service portal globally, which is designed to enable cryptographic key pairs. Based on technology that is Through the AARP BankSafe Initiative, we’re helping the our customers in over 200 markets to exercise their designed to be resistant to phishing and not permit any 2022 0.09% financial industry better safeguard elderly consumers’ individual right to access, correct, modify, manage and sharing of data between platforms, passkeys address assets by preventing financial exploitation, educating delete their personal data and marketing choices, as 2021 0.09% individuals and caregivers and enabling easier access 38 one of the biggest security problems on the web: the to banking tools. According to a Virginia Tech Center for applicable. weakness of password authentication from recycled 2020 0.12% passwords across online services. PayPal, as a founding Gerontology study, the financial institution employees 0.00% 0.04% 0.08% 0.12% 0.16% that received BankSafe training prevented 16 times more member of the FIDO Alliance, in monetary losses from financial exploitation than the is helping to champion this 1M+ In 2022, through our Risk-as-a-Service suite of products control group that was not trained. new authentication method to help protect our merchants from fraud and reduce and is one of the first in the their financial losses of chargebacks, we helped save We also partnered with AARP in support of the Stop industry to make it available accounts enrolled in Senior Scams Act by joining the Scams Against to its customers. passkeys since launch our customers more than $35 million across countries, Older Adults Advisory Group, an alliance created to including Australia, Brazil and the U.S.40 in October 2022 In addition, we educate consumers, improve industry training on scam are continuing to explore ways to help our merchants identification and prevention, and develop research on improve efficiencies and reduce costs through dispute- consumer and employee engagement to reduce fraud. automation products. 38 40 Deletion is available in select markets for accounts in good standing that meet applicable record retention timeline requirements. Customer savings estimate based on reduction in chargebacks for merchants using our Fraud Protection Advanced solution in 2022. 39 Lexis Nexis, The True Cost of Fraud estimates that for every $1 of fraud cost U.S. retail and ecommerce merchants $3.75 in 2022. Transaction loss rate represents transaction losses (including expensing associated with buyer and seller protection programs, 41 ® fraud and chargebacks) divided by our total payment volume. BBB Foundation, 2022 BBB Online Scams Report.

Creating More Extending Digital Solutions for Giving & Fundraising 44 Generosity by the Numbers Ways to Give 270M+ $20B+ In 2022, we continued to enhance giving solutions for Number of Nonprofits Supported YoY45,46 our customers across our products. For example, we At PayPal, we aim to promote generosity through the donations in funds donated facilitated over 23 million donations through our Give 2022 1.0M power of our technology. In 2022, we enhanced our enabled through PayPal at Checkout solution, which provides customers the 2021 1.1M platform and embarked on new partnerships to provide option to give a microdonation when they check out customers with more ways to support the causes they with PayPal. 2020 1.1M care about. In addition, we supported donations to personal 0 200 400 600 800 1000 1200 fundraising campaigns from more than 1.1 million Offering Multiple Channels to Make Optimizing Grant Accessibility people through PayPal Fundraisers, representing a Giving Easier 124% increase from 2021. Funds Raised for Nonprofits YoY46 In 2022, we partnered with 1,400 charities We continued to leverage our technology and scale to National Philanthropic Trust supported We launched several new giving tools in 2022, including 2022 $19.2B provide organizations and customers with new ways and Vanguard Charitable to the following: launch Grant Payments, a $25M in grants 2021 $18.4B to give. In 2022, we enabled more than 270 million new tool that enables donor- distributed • We recently introduced Donate with Rewards in donations through the PayPal Giving Platform, directly the U.S. to allow customers to donate the cash 2020 $16.6B supporting nearly 1.4 million nonprofits and other advised funds sponsors, community foundations and others to deliver equivalent of their PayPal Rewards points to the cause 0 5 10 15 20 causes, and surpassing $20 billion in funds donated grants to charities electronically for faster and of their choice. The addition of Donate with Rewards for the first time in PayPal history. easier grantmaking. expanded donation options within the PayPal app is Our Four Giving Channels one of the many ways we helped customers raise over Funds Raised for Causes Through Personal or $255 million through the digital wallet in 2022, a 40% Business Fundraising 1 Nonprofit-Owned: Donations made directly “Grant Payments helps nonprofits focus on their increase from 2021. 2022 $1,239.1M on the nonprofit’s site. charitable mission without the hassles of lost • To make it easier for customers to time and resources associated with legacy see the impact of their donations +71% in first- 2021 $773.5M 2 Platform-Owned: Donations made indirectly checks. This year, we were proud to help pilot across PayPal, we also introduced time donors to support causes on giving platforms or this new solution from PayPal through the 2020 $393.7M and found that the majority of an impact summary feature in the digital wallet third-party sites. digital wallet to U.S. customers with in 2022 0 300 600 900 1200 1500 NPT’s grants completed through plans to add it on the web platform 3 PayPal-Owned: Donations made on PayPal- Grant Payments were received in 2023. owned properties supporting charities and in a charity’s account within Number of Donors fundraisers. 24 hours.” Eileen Heisman • We launched Venmo charity President and CEO, profiles, allowing charities to 10K Venmo Charity Payouts: Payouts from charities National Philanthropic Trust create their own Venmo profile to charity profiles 2022 55.1M 4 created since to individuals or from grant makers to raise funds directly through the launch in 2021 56.1M other charities. Venmo app, giving them access October 202242 to the platform’s community of 90 2020 52.3M million active customer accounts.43 0 10 20 30 40 50 60 42 43 44 45 46 As of March 31, 2023. As of December 31, 2022. Our giving methodology presents a comprehensive view of our Powering Giving impact. The data consist of funds processed by PayPal and Braintree to all nonprofits, Represents the total number of nonprofit Does not include personal which include organizations identified as charities, other nonprofits and elementary/secondary schools and universities, as well as donations to individuals and accounts supported each year. fundraising. businesses from personal fundraising campaigns. We continue to revise prior period metrics based on improvements in data quality and calculation methodology.

Using Our Scale to Facilitate Facilitating Generosity on Twitch Global Relief We partnered with Twitch to enable their 9 million PayPal’s platform and scale uniquely position us to monthly content creators to raise money for quickly assist during global crises. In 2022, we facilitated Coming Together to Provide Aid to Ukraine the charity of their choice through our Platform aid for extraordinary events globally, including the Fundraising product and PayPal Giving Fund in humanitarian crisis in Ukraine, flooding in Pakistan and When the Ukraine conflict created a humanitarian over 30 countries. Hurricane Ian in U.S., enabling $624 million in donations crisis overnight, PayPal customers, employees from corporate, customer and employee contributions. and partners rapidly mobilized to help. In addition Our rapid-response funding helped enable new to quickly expanding our peer-to-peer payment proactive and timely partnerships including: and money transfer solutions for Ukrainians, we Enabling Holiday Season Generosity launched fundraising campaigns through the The PayPal Giving Platform continues to facilitate • Over 20 global humanitarian organizations supporting PayPal Giving Fund that enabled customers generosity around the holidays. Each year, the relief efforts in Ukraine, including UNHCR, the in 14 different markets to donate to support we are inspired by our customers’ generous International Rescue Committee, Save the Children, humanitarian aid in Ukraine and refugee support. donations and 2022 was no different, with PayPal Doctors Without Borders and UNICEF, among others. customers donating $2.6 billion during the • The National Compassion Fund to support the families In one of our largest and swiftest community responses, PayPal and our partners helped raise over $600 million for organizations providing relief efforts, including more than season.47 On Giving Tuesday alone, more than of victims in the Buffalo, NY and Uvalde, TX shootings. $18 million for Razom for Ukraine, which supported the delivery of tactical medicine, 1 million customers donated $149 million across • World Central Kitchen and People’s Advocacy hospital supplies and tech-enabled emergency response materials. 194 markets. Institute to enable relief related to the flooding in Jackson, MS. We also worked with merchant partners to • The Governor’s Office and the First Lady of Florida create campaigns to facilitate support for to support Hurricane Ian relief by waiving all fees on impacted Ukrainian civilians. For example, donations to the Florida Disaster Fund. we partnered with Uber to enable donations through the Uber app in support of the PayPal ranked #1 on International Rescue the 2022 Fortune Together, PayPal and our employees and Committee, which Change the World customers supported rapid-response and list in recognition of relief efforts throughout 2022: provided assistance facilitating support to families displaced to Ukrainian civilians $620M+ 7 by the conflict. and refugees. to help communities48 global events 47 The holiday season is defined as the Tuesday before U.S. Thanksgiving through New Year’s Eve, or November 22, 2022 to December 31, 2022. 48 Includes corporate, employee and customer contributions.

Employees 2022 Summary Highlights & Culture • Achieved global gender and U.S. ethnic pay equity. • Designed, built and implemented our new candidate- “Innovating how we recruit, retain and For PayPal, our employees are one of our greatest assets centric and inclusive Global Talent Acquisition strategy. develop talent fuels PayPal’s growth and our and we believe effectively managing and investing in our 49 employees’ development — and is essential global workforce is an important aspect of the long-term • Reached overall workforce diversity of 56%, including for attracting and retaining talent in this 44% global gender diversity and 54% U.S. ethnic diversity.50 success of our business. We work to create a positive, competitive landscape. One example is our 51 supportive and collaborative workplace where all • Achieved a 93 Remote Work score and 84 Work-Life new Leadership Principles, which provide a 52 employees are encouraged to thrive and innovate. Balance score on our annual global employee survey. common foundation of what we Through frequent engagement, a robust talent • Empowered employees to volunteer nearly 100,000 hours value in our people and how we management strategy, a strong focus on employee total and support roughly 4,000 nonprofits worldwide. work, distinguishing our culture wellness and an ongoing commitment to championing and making clear that each of us DIE&B, we strive to foster a dynamic workplace is in a position to lead, no matter designed to attract and retain talent. We also provide Encouraged learning and development what our role is.” Ana Mendy 1.4M with 1.4 million hours of learning VP, Talent Management and DIE&B opportunities for employees to apply their skills and total learning Los Angeles, CA, U.S. hours courses accessed by employees.53 experience to support and strengthen their local communities. 26% Exceeded our goal to have at least 20% PayPal-defined estimated minimum estimated net disposable income (eNDI) for hourly and entry-level employees net disposable globally through our employee financial wellness initiative.54 income In This Section SDGs Reflected in This Section • Managing Our Global Workforce • Leading With Diversity, Inclusion, Equity & Belonging • Empowering Employee Community Impact 49 Global women and U.S. ethnically diverse men. 50 Ethnically diverse includes U.S. EEO-1 defined categories American Indian or Alaska Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander or Two or More Races. 51 The ease with which PayPal employees can work remotely. 52 Access to programs and flexibility that support PayPal employee well-being. 53 Includes PayPal instructor-led courses and self-directed learning. 54 The PayPal-defined estimated net disposable income is the percent of discretionary income remaining for our employees after taxes and typical living expenses are paid. This metric is calculated through a third-party model that utilizes independent data on market-based costs across selected geographies. The model was enhanced from prior periods to incorporate best practices and methodological improvements.

Managing Our 57 Annual Global Employee Survey Global Workforce Setting our employees Highlights up for success on Day 1 29.9K through a consistent Up four percentage points Attracting, recruiting, developing and retaining diverse onboarding employees (11.8K in U.S.)55 83% talent is crucial to delivering new products and services, experience. Employee from 2021 and eight points and advances our mission to help customers access Ensuring we Reimagining Participation above benchmark58 continue to support performance and thrive in the global economy. We are focused our employees, even management to help on creating a talent strategy that actively engages through the exiting our people thrive and employees at every phase of their career at PayPal — process. reach their potential. 23.8% Reflecting modest declines from recruitment to offboarding. total turnover rate56 79 from our 2021 scores, in Engagement Engagement part due to the Company’s Score59 Engaging with & Listening to refocused efforts on nvesting in our Growing and developing organizational transformation Our Employees effectiveness our employees through 78 and efficiencies and the through differentiated an end-to-end career ~150 Intent to Stay Employee feedback plays an important role in the leadership development total nationalities Score60 macroeconomic environment development. framewor. ongoing development of our employee programs and Transforming resources. As we transitioned to a hybrid workplace our managers through model, we leveraged multiple channels to connect with people leader development 93 and learn from our people, including individual surveys, opportunities proven to Remote Work Indicating our hybrid model peer-to-peer learnings, listening sessions and all-hands enhance employee 27 Score61 is giving employees the engagement. countries meetings. In 2023, we plan to continue to empower resources and flexibility our leaders with the tools and resources needed to 84 they want and need support our diverse and distributed teams, including Work-Life Balance Score62 Global Collaboration Days aimed at spurring in-person Championing Our Leadership Principles Across the Business community and innovation. The survey results help us understand how to For the fourth consecutive year, we conducted an From revising our approach to performance “We use our Leadership Principles as a guide for how improve our business, revealing opportunities we employee engagement survey to help understand management to launching new development we operate and what is expected of us. They provide have to continue enhancing our employee efforts employee perspectives on the employee experience, opportunities, PayPal’s new Leadership clarity on what it takes to be a true customer champion, related to topics such as career development and DIE&B efforts and our Leadership Principles. In addition Principles serve as the foundation and guide valued teammate and effective leader. I have linking day-to-day work to our mission. to the annual survey, we also released targeted to enhancing our talent management strategy been incredibly inspired to see these surveys to gather employee feedback on our internal across the employee lifecycle. In 2022, we principles come to life across the In 2022, we also launched a new DIE&B inclusion communications approach and evolving workplace appointed 60 senior leaders across functions, company in support of our business index consisting of 11 scores on topics such as preferences. This data, along with additional employee geographies and backgrounds to serve as strategies, our mission, our customers mentorship, allyship, peer support and inclusive feedback, helps us refine our programs and gain insight Leadership Principle “Ambassadors” — visible and each other.” decision-making, which will provide helpful input into key areas of strengths and opportunities so that we champions of the Leadership Principles to help Vincent Belloc to measure employee views on our multi-year incorporate them across the Company. For more Leadership Principles Ambassador and DIE&B journey. can continue to work to foster an inclusive culture. on the Leadership Principles, see About PayPal. VP and Managing Director, U.K. London, U.K. 55 56 57 58 59 60 61 62 As of December 31, 2022. Total turnover rate includes voluntary and Our annual employee survey consists of 25 questions sent to all PayPal employees. The survey All scores benchmarked against Whether the employee would Whether the employee The ease with which PayPal employees can work Access to programs and flexibility that support PayPal employee involuntary employee attrition over the last is administered by a third-party organization that provides independent benchmarking and top technology peer index from recommend PayPal to their friends intends to work at PayPal remotely. This question was added in the 2022 survey, well-being. Historical comparisons have been excluded as the 12 months ending December 2022. analysis. Scores are converted from a mean score on a five-point scale to a score out of 100. survey provider, where available. and/or is happy at PayPal. in two years. so a previous year comparison is unavailable. question wording was revised as of the 2022 survey.

Fostering Growth Throughout the Encouraging a Culture of Learning & Partnerships to Help Expand Employee Lifecycle Development Opportunities for Underrepresented Creating candidate and employee We are committed to embodying our Leadership Talent experiences where people Top 100 Principle to Learn, Every Day and providing varied • In Manila, Philippines, we partnered with Thrive, feel engaged, rewarded and (#90) in Fast opportunities for our employees to continue to grow at our ERG for people with disabilities, to expand Company’s Best the Company. In addition to the existing instructor-led championed is critical to ensuring Workplaces for and self-directed learning opportunities available to all our hiring of disabled persons in our Venmo and top talent joins and remains at Innovators PayPal Customer Solution teams. PayPal. employees, in 2022, we: • We partnered with U.S. Historically Black • Launched Career & Leadership Journeys, with over Colleges & Universities (HBCUs) and Hispanic Enhancing Our Approach to Talent Acquisition 5,500 employees participating, to support each Serving Institutions to help build a long-term In 2022, we designed, built and implemented our employee’s individual career paths through three hiring pipeline for underrepresented talent. new candidate-centric and inclusive Global Talent foundational elements of learning: core skills, business • In collaboration with Tent Partnership for Acquisition strategy organized around: acumen and mindset and behaviors. Refugees, we founded a new U.S. mentorship • Creating a globally consistent, end-to-end hiring • Continued our Emerging Leaders Program to provide Investing in Inclusive Talent Pipelines program committed to helping refugees restart process with standardized and streamlined development experiences for employees who seek to or advance their careers. processes and tools. expand their responsibilities and boost their careers. Through our continued partnership with • We joined the Second Chance Business • Developing resources to create a more efficient and • Introduced Managing at PayPal Successfully, organizations such as CodeHouse, NABA, Coalition and became a new hiring partner positive hiring process, including a new internal a manager development program for all newly Year Up and INROADS, we are working to identify with Next Chapter to train and hire formerly career hub to support internal mobility, HackerRank promoted or newly hired leaders focused on skills and recruit talented Black and Latinx students incarcerated citizens in software engineering. screening tools for engineers and mandatory training such as providing consistent communication, for internships and full-time opportunities. For modules. leadership and motivation training. example, PayPal helped mentor and support participants of the CodeHouse Scholars Initiative “Together with PayPal, we have been able • Reimagining our university recruiting strategy to summer academy, which welcomed nearly to provide meaningful opportunities for focus on students rather than school rankings, use an 40 students from five HBCUs in 2022. formerly incarcerated individuals, enabling objective rubric for evaluating skills and capabilities 1.4M 27K+ them to rebuild their lives and become active and broaden our talent pipeline through new contributors to society. PayPal’s support has partnerships. total learning hours63 employees “Partnering with PayPal has helped us not only strengthened our mission, but has also • Establishing accountability, consistent leveraged learning significantly expand our organization’s inspired others. Together, resources63 we are redefining second communication and training for our recruiting team reach to impact the lives of thousands of chances and transforming focused on individual development. underrepresented students across the country. lives, one story at a time.” ~98K 45+ With their support, we’re confident that we can Kenyatta Leal make the tech industry a Executive Director, Next Chapter more equitable, inclusive self-directed average hours place for generations to courses accessed64 of learning per come.” employee Ernest Holmes CodeHouse President and Co-Founder 63 Includes PayPal instructor-led courses and self-directed learning. 64 Self-paced learning courses offered through PayPal on LinkedIn Learning, Udemy and O’Reilly that were accessed by employees. A self-directed course is considered “accessed” when a learner starts any video in that course.

Prioritizing Employee Total Wellness • Providing financial coaching and education to • Provided PayPal employees and their families employees globally through new financial wellness Making Progress on Our Employee unlimited and free access to Calm, a wellness app Wellness is a core value at PayPal and we offer webinars, one-on-one retirement planning and other Financial Wellness Goal to help improve sleep and manage stress. Last year, programs, benefits and initiatives that support each financial planning tools and resources. 75% of those who signed up engaged with the app at employee’s financial, mental and physical health. We In 2019, we established an enterprise-wide least weekly. seek to create a flexible, balanced work culture and take • Completing our Employee goal to reach at least 20% PayPal-defined Financial Wellness Diaries Participants’ debt-to- • Enhanced our sabbatical program to better facilitate 69 a holistic approach to leave and benefits. equity ratio was reduced estimated net disposable income (eNDI) for our research study, which 68 employee utilization of four weeks paid sabbatical by 20%on average employees globally, in an effort to help promote We recently centralized our corporate wellness strategy found that participants the financial wellness of our employees. Recently, upon their five-year anniversary. and appointed a Global Wellness Lead to increase improved their financial 83% of respondents said we refined our evaluation methodology to better • Expanded our “Mind Yourself” program to additional the cohesiveness of our program around the globe. wellness since joining they would now have an reflect the typical living expenses impacting our teams in 2022, encouraging We also created a new Global Wellness Council and PayPal and that the EFW easier time covering an The Mind unexpected expense of employees and the benefits and compensation employees to do a daily self-check Yourself program reestablished our network of Wellness Ambassadors initiative supported their $1,000 they receive, such as equity grants, reduced and reduce the stigma around reached a net to promote and educate our colleagues on available progress.67 healthcare costs and other subsidized benefits. In talking about mental health with promoter score benefits and resources. of 7470 2022, we achieved our goal, with all employees coworkers and leaders. in 2022. Advancing Employee Financial Wellness 230+ 1,300+ achieving an eNDI of at least 26% across our global locations. We will continue to perform Supporting Employee Physical Wellness PayPal’s Employee Financial Wellness (EFW) initiative periodic living wage assessments to measure continues to be a cornerstone of our overall wellness financial coaching personalized financial and determine appropriate next steps to support In 2022, we updated our approach to physical well- strategy and, in 2022, we launched new programs trainings delivered across coaching sessions our employees’ financial wellness. being and introduced new resources and benefits for and provided more resources to support employee 24 countries conducted our employees and their families, including: financial security and literacy across our workforce. GOAL: 2022 PROGRESS: • Maintaining zero cost increase for U.S. health plans This included: for the third consecutive year, with PayPal absorbing Advocating for Our Employees Reach 20% eNDI for 26% minimum 71 • Providing 2022 annual incentive plan payouts fully in  the premium cost differences. cash to eligible65 all hourly and entry- eNDI for global employees to reduce the impact of Throughout 2022, our Employee l • Offering free parental support solutions, resources, recent stock price volatility. Advocacy team offered specialized evel employees employees training and 24/7 care for PayPal families through • Continuing to distribute financial wellness grants aid to PayPal employees experiencing our partnership with RethinkCare. to hourly and entry-level employees, and updating crises. This support included the vesting schedule to give employees more assistance for employees affected by Thanks to resources provided by RethinkCare: opportunities to access their vested equity.66 natural disasters and the war in Ukraine. We also Promoting Mental Wellness • Giving U.S. employees access extended financial support through our Employee In a hybrid work environment, stress and burnout 82% 78% 29% to Even, a financial wellness app $4M distributed Relief Fund for team members experiencing can go unnoticed, making it important that we that provides early access of up through ~15K medical or financial hardship. provide resources and support for our employees to of participants of participants increase in early paycheck maintain positive mental health. In 2022, in addition reported reduced stated that their employee to 50% of their next paycheck to access requests to continuing our Global Wellness Days and providing stress or anxiety child’s behavior cover unexpected bills and other participation expenses, as well as save for future needs. access to free Employee Assistance Program and/or skills in 2022 counseling services, we also: improved 65 67 68 69 70 Senior Director role and below. PayPal’s Employee Financial Wellness (EFW) research study followed Debt-to-equity ratio is all debt and student The PayPal-defined estimated net disposable income is the percent of discretionary 74% of surveyed participants “Strongly 66 a cohort of 22 PayPal employees over 17-months to better understand loans divided by savings, investment and income remaining for our employees after taxes and typical living expenses are paid. Agreed” on a Likert scale that they would New vesting schedule applies to service-based equity the impact of our EFW initiative. Dr. Daryl Collins served as the principal home equity. Note that there is no documented This metric is calculated through a third-party model that utilizes independent data likely recommend the program to others. investigator, and participation in the study was entirely voluntary, with standard which indicates whether an individual on market-based costs across selected geographies. The model was enhanced from 71 awards granted on or after Applied to entry level U.S. employees. January 1, 2022. the resulting data and findings completely anonymized. level debt-to-equity ratio is strong or weak. prior periods to incorporate best practices and methodological improvements.

Leading With Diversity, Inclusion, Other accomplishments in 2022 included: • Completing the U.N. Global Compact’s Target Gender Equity & Belonging Equality program to gain valuable skills and support for PayPal to expand diverse initiatives across the At PayPal, we are fueled by our diverse perspectives, In 2022, our sustained commitment to inclusion drove globe. backgrounds and experiences and are committed meaningful steps to enriching a workforce and culture • Maintaining our presence on the Disability:IN to embracing people of all racial, ethnic and cultural that we believe reflects the communities where we Procurement Council, which informs our efforts backgrounds, gender identity and expression, sexual work, live and serve. This included: to drive inclusion of disability-owned business orientation, veteran status and abilities. A strong • Enhancing our quarterly reporting to our DIE&B enterprises. and engaging culture where everyone can be their Business Council to provide insights on the • Participating in the Disabled Owned Business authentic selves and do their intersection of our employee lifecycle and DIE&B Enterprise Certification Committee that helps best work is important to PayPal ranked businesses negotiate the complex certification generating stockholder value #20 on the strategy. and to furthering our mission to Forbes America’s • Scaling development programs to strengthen the process. Best Employers Achieving Pay Equity Across Our democratize financial services for Diversity list leadership pipeline for underrepresented populations, Workforce Reimagining Product Design for all. including piloting an enterprise-wide sponsorship program for global female leaders. We are proud to achieve 100% pay equity in We continue to focus on designing products that Our dedicated global DIE&B team, led by our Head of 72 are equitable, accessible and inclusive to all PayPal Global DIE&B, in partnership with appointed business • Incorporating inclusion-focused questions in our overall total compensation for women globally leaders on our DIE&B Business Council, continued to annual employee engagement survey to gain a as compared to male peers and for Black, Latino customers. In response to emerging global regulation, enhance our existing inclusion efforts and pilot new deeper understanding of employee sentiment and and Asian employees in the U.S. as compared including U.K. Financial Conduct Authority guidance on initiatives. We continue to work toward growing our experiences at PayPal. See Engaging with & Listening to white peers. We also observed 100% pay fair treatment of vulnerable customers and customer women, Black and Latinx employee populations. to Our Employees for more information. equity in overall total duty, we launched enterprise-wide initiatives to: Employees across PayPal also embarked on our compensation in the U.S. 100% global gender, • Proactively mitigate vulnerability in product design to for Black, Latino and Asian U.S. ethnic and U.S. expanded DIE&B Learning Journey, Inclusion@PayPal — women, as compared to intersectional pay facilitate equitable access for global customers with “The multi-dimensionality and diversity of our a modular learning series launched in 2021 — to learn equity 73 white male peers. characteristics of vulnerability, including an inclusive platform and products create impact for our about DIE&B foundations, performance management content style guide for designers and equity-focused customers and their communities that can break best practices and the importance of effective research for user experience teams. the generational curses of financial inequity. By sponsorship. In 2023, we • Further PayPal’s delivery of a high standard of advancing DIE&B at PayPal, we foster plan to include learning ~80% of PayPal Addressing Diversity in Our Supply an environment where every employee experiences on topics employees completed Chain customer care and protection, helping consumers can contribute to our success, find the “Inclusion@PayPal: make informed decisions about PayPal products in such as allyship. Building Foundations” We remain committed to working with diverse line with their personal financial objectives. opportunity, belong and grow.” module businesses where appropriate and, in 2022, PayPal’s Toretha McGuire Global Sourcing team further enhanced our supplier Global Head of DIE&B To learn more about how we are investing in an diversity program by extending our focus to include Tier New York, NY, U.S. 2 suppliers. In 2023, we plan to launch an initiative to inclusive talent pipeline, please see Fostering encourage priority vendors to subcontract opportunities Growth Throughout the Employee Lifecycle. to diverse businesses when working with PayPal. 72 Total compensation is defined as base salary, annual bonus and annual equity awards. 73 Characteristics of vulnerability include physical or mental disability, caregiver status, economic impairment and others.

Workforce Representation Metrics 74 Fostering a workforce that is representative of the merchants, consumers and communities we serve is an important component of our long-term DIE&B strategy. Our representation data provides one facet of measuring our performance and progress across our workforce. This information is used to help inform program enhancements across the employee lifecycle. We regularly review reporting best practices and continue to evaluate ways to enhance our disclosures to reflect our multifaceted workplace. We continue to make progress on improving the data quality and accuracy of additional employee data to meet our commitment to disclose employee lifecycle information by gender and U.S. ethnicity by 2024. 2022 Global Gender Diversity Diversity Trends by the Numbers 75 76 77 OVERALL WORKFORCE TECHNICAL PROFESSIONAL LEADERSHIP 56% +2% +3% FEMALE: in diverse leadership in women in leadership FEMALE: FEMALE: FEMALE: 78 78 44.0% 28.1% 44.2% 36.0% Diverse Workforce Representation (since 2021) (since 2021) MALE: MALE: MALE: MALE: 3.7% U.S. Veterans79 55.9% 71.7% 55.7% 64.0% NON-BINARY: NON-BINARY: NON-BINARY: NON-BINARY: 2.8% U.S. LGBTQ+80 +6% +15% .07% .12% .07% .00% 81 in women in technical in U.S. underrepresented 1.7% Global Disability 82 roles (since 2015) minorities hiring (since 2020) 2022 U.S. Ethnic Diversity83 2022 U.S. Ethnic Diversity by Role83 OVERALL WORKFORCE TECHNICAL PROFESSIONAL LEADERSHIP (% of Overall U.S. Workforce) 0.2% 0.1% 0.2% 0.0% 0.3% 0.3% 0.3% 0.0% Overall 24.3% 29.6% 53.9% 2.5% 4.1% 1.8% 2.5% 5.0% 2.5% 8.2% 2.5% 8.3% 28.2% 3.6% Technical 22.6% 45.8% 68.4% 8.3% 8.4% 42.6% 42.0% 26.4% Professional 24.7% 29.9% 54.6% 57.7% Leadership 14.2% 23.2% 37.4% 34.5% 59.7% 34.8% 0 20 40 60 80 Women Me n American Indian or Alaska Native Asian Black or African American Hispanic/Latinx Native Hawaiian or Pacific Islander Two or More Races White 83 82 Global Gender Diversity U.S. Ethnic Diversity U.S. Underrepresented Minorities (Female % of Global Population) (Ethnically Diverse % of U.S. Population) (Underrepresented Minorities % of U.S. Population) 50% 80% 25% Overall Professional 44% 44% 44% 20% 19% 20% Technical Leadership 43% 44% 70% 67% 69% 17% 19% 40% 43% 67% 17% 19% 60% 15% 33% 36% 52% 55% 33% 50% 50% 54% 10% 10% 10% 11% 30% 50% 52% 8% 9% Visit our website for access to our 27% 27% 28% 9% 40% 37% 37% 37% 5% available EEO-1 reports. 20% 30% 0% 2020 2021 2022 2020 2021 2022 2020 2021 2022 74 75 76 77 78 79 80 81 82 83 Workforce representation metrics are based on Technical roles include Professional Leadership Diverse is defined U.S. employees who have U.S. employees who have self-identified as LGBTQ+. Approximately Global employees who have self- U.S. employees who identify as Black or African Ethnically diverse includes U.S. EEO-1 defined self-reported data. Due to rounding and exclusion employees in engineering, is defined as is defined as as global women self-identified as “Non- 7% of U.S. employees responded as of December 31, 2022. This identified as having a disability in American, Hispanic or Latinx, American Indian categories American Indian or Alaska Native, Asian, of employees who do not self-identify, numbers information technology and Director roles Senior Director and U.S. ethnically Protected Veterans” and self-identify question is voluntary and the representation percent countries where it is legally allowed or Alaska Native, Native Hawaiian or Other Black or African American, Hispanic or Latino, Native presented may not reflect exact totals. technology operations. and below. roles and above. diverse men. “Protected Veterans.” may vary based on adoption among U.S. employees. or required to disclose. Pacific Islander, or Two or More Races. Hawaiian or Other Pacific Islander or Two or More Races.

2022 Highlights from Our Employee Resource Groups Promoting Equity & Inclusion through Our eight Employee Resource Group (ERGs) serve a Civic Engagement & Advocacy critical role in nurturing a sense of community and Celebrating Latinx communities Uplifting the Pan-Asian community In advance of the 2022 belonging, supporting talent recruitment and retention Aliados launched “Cafecito Connections” sessions Rise conducted its first mentorship program with U.S. Midterm Election, we and furthering our DIE&B strategy. We are continuing to build connections internally and continued its 200 pairs of mentors and mentees and partnered relaunched our PayPal to evolve our ERGs to support our business initiatives focus on career building by offering a mentorship with the PayPal Community Impact team to raise Votes initiative to encourage while fostering a culture of belonging through: program with Latinx senior leaders. more than $28,000 for flood relief in Pakistan. employee civic engagement and provided all PayPal employees four hours of paid time off to • Elevating the role of ERG leaders and equipping vote. We also expanded our Community Impact these individuals with professional development and Time Off to allow our employees to volunteer as mentorship opportunities. poll workers and hosted polling places at our • Launching our inaugural ERG summit and ERG Inspiring Black employees Supporting our military veterans headquarters in San Jose, CA, U.S. and our office Academy series to promote collaboration, share best Amplify hosted events on career growth, mental resilience To honor and support PayPal veterans and the military in La Vista, NE, U.S. practices, build subject matter expertise and learn and financial empowerment. They also partnered with the community, Serve recorded a reading for children with We also launched programs and supported from senior leaders. Global Talent Acquisition team at the Afrotech Conference loved ones deployed and facilitated meet-ups for to attract more than 1,000 job applicants. Serve members. initiatives to foster broader community civic • Creating and refining policies and processes to help engagement, including the following: improve the planning and implementation capacity of our ERGs. • A consumer awareness campaign within the Venmo and PayPal apps before Election Day. • Underwrote and supported the Arizona Civic Promoting the value of faith at work Building an inclusive community for the disabled Spring initiative developed by the Institute for 8 8.1K+ 25+ Believe hosted interfaith events to promote understanding Thrive worked to implement Livestream Communication Citizens and Scholars. of the value of faith at work and provided faith education Access Realtime Translation captions and American Sign ERGs members countries on global worldviews and mental health sessions Language (ASL) interpreters for PayPal Global • Continued leadership with Time To Vote, focused on burnout. All-Hands events. helping the initiative to surpass 2,000 corporate supporters. In 2022, PayPal supported legislation with strong “By increasing representation, educating and connections to our core value of Inclusion, celebrating the diversity of our global workforce, including the Pregnant Workers Fairness Act, PayPal’s ERGs enable connection across identities Empowering LGBTQ+ employees Driving gender equity at PayPal which requires additional accommodations and and experiences, inspire pride among Pride hosted inspiring internal discussions Unity developed initiatives to support working protections for pregnant workers in the workplace. our employees and ensure that we with intersectional leaders and LGBTQ+ rights parents, provided financial literacy education and maintain a values-driven culture that advocates to drive awareness leadership development and released a second and empathy. season of the Looking Up podcast series. integrates DIE&B into our day-to-day and empowers our employees and customers to thrive.” Ellen Hayes VP, Employee Communications Culture and Community San Jose, CA, U.S.

Empowering Employee Community Impact Team locations Community Impact 4 Employees across PayPal actively seek opportunities to apply their personal knowledge, skills 3 and passions to make a positive impact in their communities through volunteering, charitable giving and employee engagement programs. 26 countries Encouraging Employee Volunteerism represented 2 In 2022, PayPal employees demonstrated their generosity 39 and desire to support their communities by volunteering PayPal was awarded the Best Community 1 5 Community Involvement Impact Teams nearly 100,000 hours (19% increase from 2021) and donating Award from the Fingal 6 more than $5.6 million (including matching funds).84 Chamber of Commerce for 4K 7 We continued working to make employee volunteer our employees’ commitment nonprofits supported opportunities accessible, resulting in 19,000+ employees85 to volunteerism in Ireland. mobilizing to support their communities. 19K employees participated in Building Community in a Flexible Work Environment Community Impact activities Our Community Impact program is an essential way we build our sense of culture and Examples of initiatives, programs and events from our 2022 Community Impact Teams include: community among our teams. It provides a point of connection, inspiration and learning for our employees globally, further connecting them to our mission. 1 Mexico: In support of the “Somos el cambio” (We Are the Change) 5 India: In coordination with the Indian Association for the Blind, PayPal We have built a community of global volunteer leaders across the Company focused on program, 18 PayPal employees reviewed and evaluated 74 community hosted stalls for partially blind entrepreneurs twice per month from impact projects developed by young people, identifying five outstanding July through September that sold baked goods and other snacks with enabling our employees to participate in Community Impact programs. They are equipped projects. proceeds benefiting 50+ visually challenged families. with leadership development training on influencing stakeholders, problem-solving, cultural sensitivity and other topics that can be leveraged in their capacity as a volunteer leader 2 Virtual U.S.: Coached student entrepreneurs as part of the Network for 6 Philippines: In coordination with HOUSE Foundation, 32 employees and in their day-to-day jobs. Teaching Entrepreneurship (NFTE) StartUp Summer program, with two participated in a virtual social entrepreneurship coaching session featuring of the students winning the competition and receiving financial awards Fulfill Zero Waste Store and Messy Bessy Shop, helping entrepreneurs “Throughout the year, we’ve provided our employees toward their business idea. through business challenges and providing guidance on developing a In addition to our employee successful small business. generosity, PayPal also with even greater opportunities to connect with each 3 U.K.: Expanded our relationship with Rewilding Britain, a 2022 Community supported its local other and their communities through virtual and Impact Grant recipient, through a presentation to U.K. PayPal employees 7 Singapore: As part of TOUCH Community Services’ Digital Readiness communities by providing: in-person volunteering. This flexibility on the organization’s mission to restore and connect species-rich habitats program and “Back to School” initiative, 37 PayPal volunteers packed helped spur deeper community across 30% of Britain by 2030. education kits that included laptops, backpacks, stationery and snacks engagement and skills-based support for underprivileged children in Singapore. $28M+ for nonprofits and small businesses 4 Sweden: PayPal employees hosted a networking session in collaboration around the globe.” with Right by Me to help strengthen social and professional opportunities in corporate charitable Kenrick Fraser for vulnerable young people. To learn more about how our employees are engaging to help contributions86 Global Lead, Employee Community address climate change, please see Environmental Sustainability. Impact & Community Partnerships New York, NY, U.S. 84 Each employee has the opportunity to have their volunteer time ($10/hour) and donations matched by PayPal up to $2,500 annually. 85 Employees that participated in community impact initiatives or activities including volunteering, giving and/or actions to integrate impact and sustainability into their daily lives. 86 Includes donations, matching gifts, grants and in-kind donations.

Learning Through Skills-Based Providing Opportunities for Impact Volunteerism In 2022, PayPal reintroduced in-person volunteering and continued offering virtual volunteer opportunities, “Thanks to the outstanding skills-based volunteerism In 2022, PayPal employees contributed nearly 50,000 from PayPal employees in Japan and our 2022 grant, hours to skills-based volunteering through pro bono, including through our Team Up for Impact summer we have been able to create a mutually valuable coaching and leadership programs designed around campaign. The campaign provided approximately 2,800 partnership between PayPal and a service-learning model. This approach combines employees an opportunity to connect with each other Japanese social entrepreneurs learning objectives with volunteerism to provide and their communities. Employee volunteers contributed and nonprofit organizations, and employees with a practical and reflective learning nearly 17,000 hours to 33 nonprofits across 10 countries gained a great deal of insight experience while helping create economic opportunity during the campaign. First-time volunteers made up over from PayPal for our future programs.” and improve financial health in our communities. 50% of the participating PayPal employees. Yuko Motoki Board Member & Social Innovation Team Across PayPal, employees applied their skills to make a Over the past year, our Community Impact Grants ETIC. (Entrepreneurial Training for Innovative Communities) positive impact by: program allowed nearly 11,000 employees to select 71 PayPal Community Impact grantees to further PayPal’s • During the Skills for Good campaign in October 2022, mission in their local markets. In 2022, we launched the PayPal employees collectively volunteered more than Partnering to Mentor Female Championing Possibilities Pro Bono program to build the 10,000 hours to local organizations and communities Entrepreneurs capacity of PayPal’s Community Impact Grant initiative. around the world, a 35% increase from 2021. Through this new program, we provide grantees pro • PayPal employees provided 5,800 hours of pro bono PayPal partnered 62% of mentees bono services in technical areas, including legal, service to create economic opportunity for our with the Cherie Blair reported improved finance, communications, marketing, risk, technology, communities, help small businesses grow and provide Foundation for Women business performance human resources and strategy. nonprofits with access to technical expertise. for the fifth consecutive after program year to provide female participation • PayPal employees provided coaching and mentorship entrepreneurs access to help the NFTE prepare more than 45,000 young to mentorship and other services. Since 2018, people for career success.87 370+ mentors from PayPal across 26 countries Engaging Employees through Impact • PayPal employees volunteered to support currently supported 470+ women entrepreneurs. Employee Community Impact is core to our and formerly incarcerated women through the business at PayPal, not only for helping those Televerde Foundation’s PATHS programs to help around us but also to empower our employees. develop the skills and confidence needed to We found that teams with a higher participation support post-incarceration careers. “One of the most effective ways we’ve found to in community impact activities also had higher provide learning opportunities is through skills-based engagement scores and longer tenure at PayPal. volunteering, such as coaching a small business Learn more about our employee engagement owner. Equally as beneficial is that these efforts in Employee Engagement. programs also help us advance our mission, which is the foundation of our company and an evergreen reason why people love working at PayPal.” Kendra Goldbas Global Head of Enterprise Learning and Development Seattle, WA, U.S. 87 For fiscal year from July 1, 2021 to June 30, 2022.

Environmental 2022 Summary Highlights Sustainability • 26% reduction in direct emissions compared to 2021.88 • Undertook a climate risk assessment and scenario 2022 Progress on Our Science-Based At PayPal, we work to mitigate our environmental footprint and analysis as part of enhancements to risk management Climate Goals89 advance sustainable practices in the communities where we practices and TCFD disclosure. GOAL: 2022 PROGRESS: operate, even with PayPal’s relatively small GHG emissions • Joined the Climate Innovation for Adaptation & footprint compared to other companies. Resilience (CIFAR) Alliance as a founding member to Reduce absolute 80% operational support responsible innovation in digital finance for operational GHG emissions reduction 88 90 Our Environmental Sustainability Policy and ISO emissions by 25% from 2019 base year 14001-aligned environmental management system help climate adaptation and resilience. by 2025 (from a 2019 to guide our environmental sustainability strategy. This • Reached 90% total renewable energy use. base year) includes our science-based approach to mitigating • Enabled customers to donate more than $1 million Engage 75% of our Approximately 39% of greenhouse gas (GHG) emissions, efficiently managing our in natural disaster relief to impacted communities. suppliers, by spend, suppliers, by spend, natural resources, exploring environmental innovations to set science-based have or committed across our products and services and engaging our 91,92 targets (SBTs) by 2025 to a SBT employees in sustainability. “In 2021, PayPal achieved 100% renewable energy sourcing for our data centers, a tremendous milestone Achieve 100% Maintained 100% PayPal is well positioned to help catalyze digital financial for the company. Building on this progress, renewable energy for of our global data innovations to promote greater resilience among we are continuing to find new ways to global data center center energy use with underserved communities, support relief efforts to those reduce and offset our carbon footprint, operations by 2023 renewable generation impacted by climate change and reduce our impact on and advance sustainable practices in the sources the environment. communities where PayPal operates.” Greg Sly SVP, Infrastructure Sacramento, CA, U.S. In This Section SDGs Reflected in This Section • Mitigating Our Climate-Related Risks • Managing Our Natural Resources 88 Direct/operational greenhouse gas emissions include those emission sources covered by Scope 1 and Scope 2 market-based method (MBM) as defined by the Greenhouse Gas Protocol and the Science-Based Targets initiative. 89 PayPal’s Science-Based Targets are informed by stakeholder consultation and validated by the Science-Based Targets initiative (SBTi). 90 While we observed operational GHG reductions exceeding our 2025 goal, we recognize that in future years this may change as employees return to the office and the Company continues to grow. 91 To calculate the progress toward our goal of reaching 75% vendors by spend with a SBT, we consider relevant annual spend with vendors who have set or committed to setting a SBT validated by the SBTi, or have publicly disclosed a greenhouse gas (GHG) emissions reduction goal that is aligned with the latest SBTi criteria, even if not validated by SBTi. For vendors with an SBT set or commitment to set an SBT, their targets have been verified against the latest SBTi v4.2 and v5 criteria. 92 We continue to refine our assessment methodology to include vendors within relevant Scope 3 categories, including purchased goods and services, capital goods, business travel and upstream transportation and distribution.

Mitigating Our Climate-Related Risks We’ve established a long-term goal of achieving net- as a result of post-pandemic workplace repopulation. zero GHG emissions across our value chain by 2040, as At the same time, we reached 90% total renewable Understanding & Managing Our Climate-Related Risks Environmental well as medium-term science-based GHG emissions energy use and maintained 100% renewable energy We recognize that climate change poses current and future physical and Performance by the reduction targets as validated by the Science-Based sourcing for our data centers. This expanded approach Numbers Targets initiative (SBTi).93 to renewable energy procurement helped to further transition risks for PayPal, including the impact of extreme weather conditions reduce our operational GHG emissions (Scope 1 and 2) on our facilities and the effect of existing and emerging global regulations 0.5 We’re also exploring ways to help disadvantaged by 26% from 2021, even with our generally stable 2022 across our value chain. grams CO2e per communities capture opportunities and adapt their energy use. Consistent with the Task Force on Climate-Related Financial Disclosures transaction97 lives to changing global climate conditions through (TCFD) recommendations, and building on the climate risk assessment we partnerships and digital finance tools and services. We are currently on track to meet our SBT for reducing conducted in Europe, we began an enterprise climate risk assessment and 100% Scope 1 and 2 emissions 25% by 2025, with those scenario analysis using three scenarios from the Network for Greening the emissions down 80% relative to our 2019 base year.95,96 data center renewable 2022 Energy & Operational Financial System to evaluate potential short-, medium- and long-term climate energy use Emissions Trends We continue to pursue cost-effective emissions risks and opportunities for PayPal. Initial results identified key risks for PayPal, reduction opportunities across our direct operations including physical, operational, regulatory and reputational risk. See our -80% Our global energy use remained relatively flat (+1% from and our broader value chain, even with PayPal’s TCFD Index and our CDP Climate Questionnaire for the latest information 98 2021) as data center power use remained steady and relatively small GHG emissions footprint compared on our climate-related risks and opportunities. operational GHG emissions office energy use increased moderately through 2022 to other companies. (since 2019) Energy Use & Renewable Energy GHG Emissions Global Energy Use by Facility Type Renewable Energy Operational Greenhouse Gas Emissions by Scope Value Chain Greenhouse Gas Emissions (MWh in thousands)94 (% of Global Energy Use) (Thousands MT CO2e) (Thousands MT CO2e)100,101 300 100% Data Center 60 600 264.1 Goal: 100% 53.1 250 256.6 259.8 98% 100% 100% by 2023 50 500 80% 88% 90% 522 65.0 51.7 59.6 40 Emissions 507 200 76% Reduction 400 60% Goal: 25% 150 30 46.6 by 202595,96 300 40% 25.1 100 199.1 204.9 200.3 20 200 20% 22.1 14.3 10.6 50 10 11.7 100 6.5 6.7 0 0 0 3.0 2.6 3.9 0 2020 2021 2022 2020 2021 2022 2019 2020 2021 2022 2021 2022 Facilities Data Centers Total Energy Data Center Energy Scope 1 Scope 2 (MBM)99 Scope 3 93 97 100 PayPal’s Science-Based Targets are informed by stakeholder consultation and validated by the Science-Based Targets initiative (SBTi). Calculation includes operational emissions from all Scope 1 and 2 sources, including corporate jet. Scope 3 inventory includes Fuel and Energy Related Activities (FERA), Business Travel emissions from air, rail, rental car and hotel lodging, 94 98 Spend-Based Purchased Goods & Services, Crypto Activity-Based emissions, Capital Goods, Upstream Transportation and Distribution, and Our 2022 energy and operational emissions include warehouse site activities associated with our recent acquisition of Happy Returns. Operational greenhouse gas emissions include those emission sources covered by Scope 1 and Scope 2 as Warehouse energy consumption represented less than 1% of our global energy consumption in 2022. defined by the Greenhouse Gas Protocol and the Science-Based Targets initiative. In 2019, the base year for our Employee Commuting and Remote Working. Total Scope 3 emissions estimates are rounded to the nearest 1,000 metric tons CO2e to reflect 95 operational emissions target, Scope 1 and 2 emissions totaled 53,100 metric tons. While we observed operational limitations in the underlying data sources and estimation methodologies. Operational greenhouse gas emissions include those emission sources covered by Scope 1 and Scope 2 as defined by the 101 Greenhouse Gas Protocol market-based method (MBM) and the Science-Based Targets initiative. GHG reductions exceeding our 2025 goal, we recognize that in future years this may change as employees return Cryptocurrency-related emissions are estimated using calendar year activity data and the Hybrid Emissions Allocation Method as presented 96 to the office and the Company continues to grow. in the Accounting for Cryptocurrency Climate Impacts guidance published by Crypto Carbon Rating Institute and South Pole in 2022. In 2022, In 2019, the base year for our operational emissions target, Scope 1 and 2 emissions totaled 53,100 metric tons. 99 we estimate that emissions from our crypto services represented approximately 13% of our Scope 3 emissions inventory. Cryptocurrency- Scope 2 emissions data is calculated using the GHG Protocol market-based method (MBM), which includes purchases of off-site renewable energy. related emissions are accounted for as purchased goods and services, consistent with the GHG Protocol, Value Chain Standard.

Prioritizing Efficient & Renewable our supply chain, with vendor activities representing Supporting Digital Finance Solutions Generating Economic Opportunity Energy Use an estimated 95% of our Scope 3 footprint in 2022. This for Climate Resilience Through Clean Energy PayPal again earned estimate helps to illustrate the importance of our efforts Over the past two years, the U.S. Environmental to engage 75% of our suppliers, by spend, to set SBTs PayPal is a founding member of the Climate Innovation We continue to invest in climate impact projects PayPal’s real estate, Protection Agency Green by 2025, a goal that we hope to primarily achieve by for Adaptation and Resilience (CIFAR) Alliance, a that promote renewable energy and improve living construction and facilities Power Partnership Top 100 working with PayPal’s top 300 suppliers. We will also global initiative working to provide climate adaptation standards for those with limited means. Clean energy teams have installed rating, ranking among the continue to educate our employees on sustainable and resilience tools and resources to 1 billion of the technologies for cooking and lighting help underserved energy-efficient LED country’s largest renewable business travel options and eco-friendly practices for world’s most vulnerable people. The CIFAR Alliance families, women and children spend less time laboring energy procurers. 107 lighting systems across remote working and commuting. evolved from the Digital Finance for Climate Resilience and more time learning or generating income. In 2022, nearly 1 million square feet (92,170 square meters) of Task Force launched in 2021. The Alliance brings PayPal: PayPal workspace at 19 office locations globally. An To help meet our supply chain-focused SBT, we’re together over 40 members, funders and contributing estimated 9,900 long-life LED lamps will save 7.5 million partnering with CDP to provide information and organizations, representing expertise across digital • Retired recent-vintage carbon credits representing kilowatt-hours of energy over their useful life, equivalent resources to help our largest vendors, by spend, innovation, economic development and climate. 6,000 metric tons of avoided emissions from Project to the energy needed to power approximately 700 U.S. develop GHG inventories and learn more about SBTs. Shine, an efficient lighting initiative that, to date, 102 In 2022, 39% of our suppliers by spend have or In 2022, the Alliance: has helped distribute 14.5 million LED bulbs to homes for one year. Where feasible, the LEDs are 105 over 3 million households across India, preventing paired with smart control systems that sense occupancy committed to set an SBT (up from 30% in 2021). • Launched the Carbon Finance Opportunity Brief, 108 and daylight to optimize energy efficiency and light which explores how the voluntary carbon market 1.3 million metric tons of CO2e. quality for worker health and productivity. We acknowledge that there are current limitations in our • Provided financial support for new clean cookstove ability to influence GHG emissions outside of PayPal’s could help provide economic incentives for climate direct control. We continue to engage with vendors, mitigation and adaptation in Africa. projects in Mexico and Guatemala, where credit In 2022, PayPal joined 100% renewable energy tariffs in verification and retirement are underway. San Jose, CA and Scottsdale, AZ, U.S. supporting the industry peers, GHG accounting standard-setters and • Coached over 30 African entrepreneurs, including greening of local power grids. environmental non-governmental organizations to learn 50% women, in blue carbon venture-building, helping • Partnered with Gold Standard Foundation to offer more about best practices in sustainable supply chain to form seven climate impact start-ups across six PayPal employees the opportunity to purchase While most of our computing occurs in PayPal data management and will use these findings to continue countries. high-quality carbon credits, with PayPal matching center premises, we continue to migrate to cloud 109 working toward our goal. those donations. service providers who either have achieved or are 103 committed to achieving 100% renewable energy. This transition supports improvements in computing and Working to Decarbonize Business Travel data storage efficiency, as well as energy consumption. Vendor Science-Based Target Progress In 2022, we redeployed more than $300K of (% of supply chain by spend)105,110 Managing Emissions Across unused travel funds due to reduced travel during 39% of current vendors have Goal: the COVID-19 pandemic to stimulate demand for or committed to an SBT 75% by 2025 Our Supply Chain sustainable aviation fuel (SAF). SAF represents (+12% from 2020 baseline) As part of our commitment to continuous improvement, an emerging low-carbon technology with the 15.7% 20.8% 2.3% 61.2% we’ve taken steps to share a preliminary estimate of our potential to significantly reduce the climate 106 0% 20% 40% 60% 80% 100% indirect (Scope 3) emissions from relevant 2022 value impacts of commercial air travel. Science-Based Target: Set Science-Based Target: Committed Science-Based Climate Goals 104 No Climate Goals or Unknown chain activities, please see Appendix to learn more. The majority of our value chain emissions come from 102 104 105 106 107 108 109 110 Assumes LEDs are 45% more efficient Scope 3 emissions inventory methodologies are imprecise and presented as estimates. Purchased We’ve restated prior period According to the International According to the Global We purchased and Carbon credit purchases from To calculate the progress toward our goal of reaching 75% than comparable fluorescent lamps, goods and services, capital goods and upstream transportation and distribution emissions estimates values based on refinements Air Transport Association, Alliance for Clean Cooking, retired 6,000 metric eligible nonprofits by PayPal vendors by spend with a science-based target (SBT), we an average LED power of 17 watts, and are determined using annual procurement spend and Economically Extended Input-Output in assessment methodology sustainable aviation fuel has been time poverty is the result of tons of vintage 2021 employees are eligible to be consider relevant annual spend with vendors who have set or average LED life span of 50,000 hours. emissions factors as published by the U.S. Environmental Protection Agency. Employee emissions are to include vendor spend from shown to provide significant loss of time due to unpaid work carbon credits, which matched by PayPal for climate committed to setting a SBT validated by the Science-Based Average U.S. home energy consumption: estimated using average office occupancy data, employee transportation survey data and estimated relevant Scope 3 categories reduction in overall CO2 lifecycle such as collecting clean water received independent impact philanthropy. Climate impact Targets initiative (SBTi), or have publicly disclosed a greenhouse 10,632 KWh. Sources: eia.gov. incremental household energy intensity due to working from home. As a software and services only, including purchased goods emissions compared to fossil and firewood. It is a global verification and have philanthropy matching is subject to gas (GHG) emissions reduction goal that is aligned with the 103 business, substantially all of PayPal’s products and services are digital. Our preliminary analyses show and services, capital goods, fuels, up to 80% in some cases. issue that carries widespread been retired on a our existing match of $2,500, which latest SBTi criteria, even if not validated by SBTi. For vendors All PayPal data center premises are housed in co-location data center that downstream Scope 3 emissions categories are not currently a material source of emissions for business travel and upstream Source: Sustainable Aviation impacts on women, their public carbon credit includes giving and volunteering, with an SBT set or commitment to set an SBT, their targets have facilities. PayPal. We will continue to assess the relevance and materiality of all Scope 3 emissions categories. transportation and distribution. Fuels: Fact Sheet 5, Dec 2018. families and their communities. registry. per year per employee. been verified against the latest SBTi v4.2 and v5 criteria.

Managing Our Natural Resources Supporting Environmental Volunteerism in Our Communities We aim to be responsible stewards of our planet’s Responsibly Retiring Electronic Waste PayPal employees around the world are passionate resources and ecosystems, and endeavor to efficiently Saving Water at Our U.S. Headquarters In 2022, our IT asset management teams retired about sustainability. In 2022, we teamed up for impact use water throughout our global operations, divert waste With leadership 338 metric tons of IT hardware across our data center through learning, volunteerism and individual action. from landfills and execute our zero-landfill strategy for from our real services, global office operations and workforce, electronic waste (e-waste). estate team, we’ve 75% of which was donated or sold for refurbishment • Environmental Volunteerism: Through a invested in intelligent and reuse and 25% was transferred to our secure combination of grants and employee volunteering Managing Our Water Use flow-control disposal vendors for disassembly and recycling in with organizations such as the SankalpTaru Given the digital nature of our business, we consume and monitoring accordance with responsible e-waste practices. We Foundation in India, Keep Austin Beautiful in the relatively low volumes of water on a revenue intensity technologies across our water systems. Campus also donated 6 metric tons of computer peripherals U.S., One Tree Planted in Ireland and United Way irrigation systems use reclaimed water, helping to local nonprofits in Europe. in Guatemala, PayPal supported tree planting and 111 and per-employee basis. We maintain water efficiency ecosystem restoration efforts across North America, standards, including low-flow faucets and fixtures, to conserve Santa Clara Valley’s scarce drinking Our company-wide e-waste management procedure Europe, South America and Asia. across our fully managed office locations globally and water resources. We’ve transitioned significant requires all IT asset disposal service providers to consider additional opportunities to support local water parts of our campus to native and no-water maintain certification to the R2, e-Stewards or WEEE • Global Earth Day Activities: Nearly 10,000 conservation efforts and appropriately manage this finite landscaping, resulting in estimated reclaimed standard for responsible e-waste management. We employees completed 20,000 individual activities, resource. As employees began to return to the office water-consumption reduction of approximately also verify that service providers maintain ISO-certified such as signing up for paperless bills or taking public 112 transit to work, that reinforced long-term sustainable in 2022, we saw a 2% increase in water use across our 2.5 million gallons annually. programs for environmental, health and safety, and facilities compared to 2021. quality management systems. working and living practices. • Company-Wide Environmental Footprint Survey: Water Consumption Reducing Waste to Landfill Across Over 9,000 employees voluntarily provided data 100 (millions of gallons) Our Operations IT Hardware Retired from Offices & Data Centers to enhance the measurement and management of (Metric Tons) employee-related GHG emissions, including home 80 Waste recycling is available at nearly all PayPal 500 energy use and transportation used for commuting. 60 offices globally and select sites also provide food waste composting. We are working with property 400 410 40 77.6 79.1 managers, local waste-hauling providers and municipal 338 “Employees at PayPal really enjoy volunteering in 108.4 20 jurisdictions to offer waste recycling in locations where 300 83.3 the climate-focused events at PayPal, whether they 0 it’s not currently available. are learning or hands-on. We are proud of working 2021 2022 200 at PayPal, where environmental 152 301.5 sustainability is one of our four key 100 94.2 254.5 pillars in our ESG strategy and our Supporting Rapid Response to Natural Disasters 0 57.8 goals are becoming reality sooner 2020 113 than expected.” In 2022, we helped concerned individuals donate more than $1 million to responding charities in the wake of 2021 2022 deadly flooding in Pakistan and Hurricane Ian in Florida, U.S. We also helped people in Mississippi, U.S. through Patricia Ruiz Gomez corporate donations to two charities working in the community to provide relief and build capacity following Transferred to secure disposal vendors Community Impact Lead and Administrative Manager Sold or donated for refurbishment or reuse Madrid, Spain water outages triggered by severe flooding events. 111 112 113 Water-consumption data is collected from facilities under PayPal’s operational control utilizing direct reporting and estimated data. All PayPal Consumption reduction based on reclaimed water use for irrigation The increase from 2020 was due to the closure of a major data center and data center premises are housed in co-location data center facilities and, as such, we do not have operational control of water use from data zones that have transitioned to native and no-water landscaping within IT refresh across our office locations. Additionally, COVID-19 significantly centers, nor do co-location data center facilities have the ability to measure water consumption for PayPal’s premises. We engage with our the past two years, relative to pre-transition estimated irrigation. impacted our ability to process disposals in 2020. data center co-location providers on water management best practices as part of our overall service agreements and requirements.

Appendix ESG Framework Alignment Our ESG strategy and disclosures take into account input from our stakeholders, as well as industry best practices. We annually report on the Company’s activities to advance the U.N. Sustainable Development Goals (SDGs) and include a table illustrating the contributions we’ve made to the seven Global Goals most relevant to our business. Additionally, we have included a summary of climate-related disclosures aligned to the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations, which provides an enhanced discussion of our governance, strategy, risk management, and key metrics and targets related to climate risk. Given the digital nature of our business, PayPal’s GHG emissions footprint is relatively small. Nevertheless, we aim to be responsible stewards of our planet’s resources and ecosystems and monitor related risks and opportunities pertaining to our business. Our reporting is aligned to the Global Reporting Initiative (GRI) standards, the IFRS Foundation’s SASB standards, the U.N. Global Compact (UNGC) Ten Principles and the Stakeholder Capitalism Metrics (SCM) framework. We 114 conducted a preliminary review of our economic activities in the context of the EU Taxonomy and found that PayPal does not make substantial contributions to the EU’s climate and environmental objectives. All references apply to PayPal’s global operations for the year ended December 31, 2022, unless otherwise noted. Independent Limited Assurance Statement Bureau Veritas UK provided an independent limited assurance opinion on select 2022 ESG metrics. We will continue to evaluate new data points for assurance in future reporting. Additional Resources Contents Beyond this report, we provide additional materials and documents that further illustrate our ESG strategies, • Supporting the U.N. SDGs activities, progress and performance, including a list • TCFD Summary of websites, policies and publicly available research. • ESG Performance Metrics Table • Independent Limited Assurance Statement • Additional Resources 114 EU taxonomy for sustainable activities.

Supporting the U.N. Sustainable Development Goals The United Nations (U.N.) Sustainable Development Goals (SDGs) are a set of 17 global goals and 169 targets that aim to achieve a better and more sustainable future for all. Across PayPal, we seek opportunities to align our business activities and priority impact areas with these goals. We annually assess our net contributions to the SDGs based on the degree of potential influence and a mapping to our core business and ESG activities and outcomes to the SDGs’ underlying targets. We found that PayPal makes a direct, positive contribution to 11 of the 17 goals, with the greatest impact on the seven goals highlighted below. As a member of the U.N. Global Compact (UNGC), we report on our contribution to the Ten Principles, which encourage adoption of sustainable and socially responsible policies aligned with the SDGs. For a complete set of ESG metrics that align to the UNGC, please see ESG Performance Metrics Table. SDG Target Relevance 2022 Select Progress Our mission to democratize financial • Enabled over $20B in donations, helping support nearly 1.4M nonprofits and causes through the PayPal Giving Platform. GOAL 1: Target 1.4: Ensure that all men and women, in particular the poor and the services is foundational to our business • Facilitated over $620M in aid for extraordinary events globally, including the humanitarian crisis in Ukraine, flooding in Pakistan and No Poverty vulnerable, have equal rights to economic resources strategy, as we seek to enable greater 115 economic access to populations globally. Hurricane Ian in the U.S. 116 End all forms of discrimination against all women and girls PayPal’s products and services help • Increased female representation across technical, professional and leadership roles year over year since 2020, with 44% overall gender GOAL 5: Target 5.1: everywhere provide access to the digital economy diversity in 2022. Gender for women, and we continue to advocate • Provided over 11,000 hours of mentorship and capacity building in support of women and girls globally as the private sector lead for the Equality Target 5.5: Ensure women’s full and effective participation and equal for equal representation and benefits for U.N. Women’s Generation Equality Forum’s Economic Justice and Rights Action Coalition. opportunities for leadership at all levels of decision-making women in the workforce. • Supported the Pregnant Workers Fairness Act to require additional accommodations and protections for pregnant workers in the U.S. Target 8.5: Achieve full and productive employment and decent work for • Achieved 100% global gender, U.S. ethnic and intersectional pay equity. GOAL 8: all women and men, and equal pay for work of equal value We develop products and enact initiatives • Introduced enhanced products and partnerships to provide simple, secure and affordable money management tools to our 400M Decent Work to help improve the financial wellness of active consumer accounts. and Economic Strengthen the capacity of domestic financial institutions our customers and employees around Growth Target 8.10: to encourage and expand access to banking, insurance the world. • Renewed $90M in deposits to two Black-owned banks and Community Development Financial Institutions through our Economic and financial services for all Opportunity Fund. GOAL 9: We support small- and medium-sized 117 Industry, Increase the access of small-scale industrial and other businesses (SMBs) globally through • Facilitated over $25B in capital to SMBs through more than 1.2M loans since 2013. Innovation and Target 9.3: enterprises, in particular in developing countries, to financial access to capital and tools to drive • Continued to help SMBs globally access payments solutions and financial services, such as through our Venmo business profiles and Infrastructure services and their integration into value chains and markets business growth. grant program and investments in Paymob in Egypt and Xepelin in Chile. Target 10.2: Empower and promote the social, economic and political • Exceeded our goal of at least 20% PayPal-defined estimated net disposable income for our hourly and entry-level employees Through investments and product 118 GOAL 10: inclusion of all globally. Reduced enhancements, we are driving greater • Our investments in 19 minority-led venture capital funds, helped deploy nearly $300M in capital to 250+ portfolio companies and Inequality Reduce to less than 3% the transaction costs of migrant equity for underserved individuals and advanced a more diverse venture capital ecosystem. Target 10.C: remittances and eliminate remittance corridors with costs minority-owned businesses. higher than 5% • Maintained average international remittance costs below 3% (2.9% in 2022). Target 13.1: Strengthen resilience and adaptive capacity to climate- GOAL 13: related hazards and natural disasters in all countries We engage with partners across our value • Joined the Climate Innovation for Adaptation & Resilience (CIFAR) Alliance as a founding member to support responsible innovation in Climate Improve education, awareness-raising and human and chain to reduce our climate impact and digital finance for climate adaptation and resilience. Action Target 13.3: institutional capacity on climate change mitigation, build climate resilience. • Engaged with our top 250 suppliers, by spend, to set science-based targets. adaptation, impact reduction and early warning GOAL 17: Target 17.3: Mobilize additional financial resources for developing We pursue partnerships that can amplify countries from multiple sources our capabilities and global reach to • Continued to enhance our services to enable customers in additional markets to make low-cost international money transfers. Partnerships Encourage and promote effective public, public-private advance our business and support an • Maintained multisector partnerships to support underserved communities and protect our customers and communities. for the Goals Target 17.17: and civil society partnerships inclusive economy. 115 116 117 118 Includes corporate, Technical roles include employees in engineering, information technology Through PayPal Business Loans The PayPal-defined estimated net disposable income is the percent of discretionary income remaining for our employees after taxes and typical living expenses are paid. employee and customer and technology operations. Professional is defined as Director roles and and PayPal Working Capital in the This metric is calculated through a third-party model that utilizes independent data on market-based costs across selected geographies. The model was enhanced from contributions. below. Leadership is defined as Senior Director roles and above. U.S., U.K., Australia and Germany. prior periods to incorporate best practices and methodological improvements.

Task Force on Climate-Related Financial Disclosures (TCFD) Summary The Financial Stability Board, which is committed to market transparency and stability, established the Task Force on Climate-Related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related disclosures. The following summarizes PayPal’s approach to addressing climate-related governance, strategy, risk management and metrics and targets in alignment with the TCFD recommendations. Our full TCFD Index is available here. Governance Strategy Risk Management Metrics & Targets Overview of PayPal’s governance structure and Discussion of the actual and potential impacts of Description of how PayPal identifies, assesses and Disclosure of the metrics and targets PayPal uses oversight of climate-related risks and opportunities climate-related risks and opportunities on PayPal’s manages climate-related risks to assess and manage relevant climate-related risks business, strategy and financial planning and opportunities • The Corporate Governance and Nominating • PayPal considers both transitional and physical risks • ESG-related risks, including climate-related risks, • PayPal discloses climate-related metrics related Committee of PayPal’s Board oversees ESG matters in the short term (zero to three years), medium term are integrated in our enterprise risk assessment. to total energy consumed, percentage renewable generally, including environmental sustainability (three to five years) and long term (five to 10 years). We identify and prioritize ESG risks and opportunities energy and Scope 1, 2 and 3 greenhouse gas (GHG) management, with responsibilities such as reviewing • The Company recognizes the potential physical and through our significance assessment, refreshed emissions. progress in developing and implementing strategies transition risks for its operations and supply chain, annually. • In 2021, we established science-based emissions- for managing environmental topics (inclusive of even as the overall risk to our business from climate • We apply the Three Lines of Defense model reduction targets informed by stakeholder climate-related risks and opportunities). change is likely low. (management, oversight and independent assurance) consultation and validated by the Science Based • Management and designated internal leaders provide • As part of PayPal’s mission to democratize financial to manage risks and our Enterprise Risk and Targets initiative (SBTi) to demonstrate progress regular updates to the Board and relevant committees services, we are exploring opportunities for our Compliance Management Program sets PayPal’s toward our long-term goal of reaching net-zero on climate- and ESG-related topics. digital payments technology to support an equitable programmatic approach to identifying, measuring, GHG emissions across our operations and value transition to a global net-zero economy. managing, monitoring and reporting key risks facing chain by 2040: • We began a climate risk assessment and scenario the Company. – Reduce absolute operational GHG emissions analysis using three scenarios to further understand • The Enterprise Risk Management Committee by 25% by 2025 (from a 2019 base year) potential short-, medium- and long-term climate risks (ERMC), co-chaired by PayPal’s Chief Risk and and opportunities for PayPal. Compliance Officer and Chief Enterprise Services – Engage 75% of our suppliers, by spend, to set Officer, and delegated subcommittees oversee the science-based targets by 2025 implementation and execution of our program. – Source 100% of our data center energy use • An ESG Steering Committee consisting of senior with renewable energy sources by 2023 leaders across PayPal regularly reports on emerging (achieved in 2021) ESG risks that affect PayPal’s business, including climate-related risks, to a subcommittee of the ERMC.

Independent Limited Assurance Statement • Vendors with Science–Based Targets (% of vendors by spend) INDEPENDENT ASSURANCE REPORT 7. Summary of Work Performed To: The Stakeholders of PayPal 3. Reporting Criteria As part of our independent assurance, our work included: The Selected Information has been prepared in accordance with internal definitions set for • conducting interviews with PayPal personnel and PayPal’s external consultants 1. Introduction and Objectives of Work PayPal’s ESG Indicators and needs to be read and understood together with the footnotes and responsible for the Selected Information; Bureau Veritas UK Limited (Bureau Veritas) has been engaged by PayPal Holdings Inc (PayPal) commentary on the approach and methodology taken, embedded in the Report. The GHG • reviewing the data collection and consolidation processes used to compile Selected to provide limited assurance of selected Environmental, Social and Governance (ESG) emissions data has been prepared taking into consideration The GHG Protocol Corporate Information, including assessing assumptions made, and the data scope and reporting 1 Accounting Standard (revised edition). performance data for inclusion in the “2022 Global Impact Report” (‘GIR’) (the ‘Report’). The boundaries; objective is to provide assurance to PayPal and its stakeholders over the accuracy and reliability 4. Limitations and Exclusions • reviewing documentary evidence provided by PayPal; of the reported information and data. Excluded from the scope of our work is assurance of information relating to: 2. Scope of Work • agreeing a selection of the Selected Information to the corresponding source ▪ Activities outside the defined assurance period; documentation; The scope of our work was limited to assurance over the following information included within ▪ Positional statements of a descriptive or interpretative nature, or of opinion, belief, • reviewing PayPal systems for quantitative data aggregation and analysis, including st st 2 the Report for the period January 1 ,2022 to December 31 , 2022 (the ‘Selected Information’) : aspiration or commitment to undertake future actions; and where applicable the underlying activity data, conversions, and emission factors Employee & Culture: ▪ Other information included in the Report other than the Selected Information. applied; • Engagement survey - Employee Participation Rate (%) The following limitations should be noted: • assessing the disclosure and presentation of the Selected Information to ensure • Engagement survey - Employee Engagement Score consistency with assured information; • Engagement survey - Intent to Stay Score ▪ No single overall data methodology / basis of reporting document was shared by • reperforming [a selection of] aggregation calculations of the Selected Information; • Overall Workforce Diversity (%) PayPal however single KPI and/or KPI family methodologies were shared and/or • Global Gender Diversity (%) demonstrated. • reperforming greenhouse gas emissions conversions calculations; • US Ethnic Diversity (%) ▪ This limited assurance engagement relies on a risk based selected sample of • evaluating the design of internal systems, processes and controls to collect and report • Total Turnover Rate (%) sustainability data and the associated limitations that this entails. the Selected Information; • Estimated Minimum Employee Net Disposable Income, Global (%) ▪ The reliability of the reported data is dependent on the accuracy of metering and other The scope of a limited assurance engagement is substantially less than for reasonable production measurement arrangements employed at site level, not addressed as part assurance both in terms of the risk assessment procedures and in performing the procedures Social Innovation: of this assurance. to address the identified risks. • Funds raised for non-profits and personal causes (USD Billions) ▪ This independent statement should not be relied upon to detect all errors, omissions or • Number of donors who gave to non-profit and personal causes (millions) misstatements that may exist. A 5% materiality threshold was applied to this assurance. It should be noted that the procedures • Total Capital to SMBs (USD Billions) in 2022 5. Responsibilities performed in a limited assurance engagement vary in nature and timing from, and are less in • Total Capital to SMBs since 2013 (USD Billions) extent than for, a reasonable assurance engagement. Consequently, the level of assurance • Average International Remittance Costs (%) This preparation and presentation of the Selected Information in the Report are the sole obtained in a limited assurance engagement is substantially lower than the assurance that would responsibility of the management of PayPal. have been obtained had a reasonable assurance engagement been performed. Bureau Veritas was not involved in the drafting of the Report or of the Reporting Criteria. Our Responsible Business Practices: responsibilities were to: 8. Conclusion • obtain limited assurance about whether the Selected Information has been prepared On the basis of our methodology and the activities and limitations described above nothing has • Annual risk and compliance training (%) in accordance with the Reporting Criteria; come to our attention to indicate that the Selected Information (a copy of which is contained in • form an independent conclusion based on the assurance procedures performed and the table below) is not fairly stated in all material respects. Environmental Sustainability: evidence obtained; and Such opinion is based on work undertaken and the limitations and exclusions defined in this 3 statement. • Greenhouse Gas (GHG) Emissions Scope 1 (MT CO2e) • report our conclusions to the Management of PayPal. • Greenhouse Gas (GHG) Emissions Scope 2 (MT CO2e) Verified KPIs2: • Greenhouse Gas (GHG) Emissions Scope 3 (MT CO2e) Employees and Culture o Emissions from Business Travel 6. Assessment Standard Employee Survey - Employee Participation rate (%) 83 o Fuel and Energy Related Activities (FERA) not included in Scope 1 & 2 – We performed our work to a limited level of assurance in accordance with International Location and Market Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other Employee Survey - Employee Engagement score 79 o Emissions from Employee Commuting and Remote Working than Audits or Reviews of Historical Financial Information (effective for assurance reports dated • Global Energy Use (Renewable and Non-Renewable) (000’s kWh) th Employee Survey - Intent to Stay score 78 • Renewable Energy as a % of total energy use on or after December 15 , 2015), issued by the International Auditing and Assurance Standards • Renewable Energy as a % of data centre energy use Board. Overall Workforce Diversity (%) 55.9 • Progress of reduction target in operational GHG Emissions (% since 2019) Global Gender Diversity (%) 44 US Ethnicity Diversity (%) 54 1 GIR is a downloadable PDF available via the official PayPal website 2 All metrics are global unless otherwise stated Total Turnover Rate (%) 23.8 3 Metric tonnes ______________________________ ______________________________ ______________________________ Ref: BV_17935015 v2 Page 1 of 5 Ref: BV_17935015 v2 Page 2 of 5 Ref: BV_17935015 v2 Page 3 of 5 Bureau Veritas | C2 - Internal Bureau Veritas | C2 - Internal Bureau Veritas | C2 - Internal

Independent Limited Assurance Statement, cont. Estimated Minimum Employee Net Disposable Income, Global (%) 26 requirements, professional standards, quality reviews and applicable legal and regulatory 5 requirements which we consider to be equivalent to ISQM 1 & 2 . Social Innovation Bureau Veritas has implemented and applies a Code of Ethics, which meets the requirements 20 of the International Federation of Inspections Agencies (IFIA)6, across the business to ensure Funds raised for non-profits and personal causes (USD Billions) that its employees maintain integrity, objectivity, professional competence and due care, Number of donors who gave to non-profits and personal causes (Millions) 55 confidentiality, professional behaviour and high ethical standards in their day-to-day business activities. We consider this to be equivalent to the requirements of the IESBA code7. The Total Capital to SMBs in 2022 (USD Billions) 4.2 assurance team for this work does not have any involvement in any other Bureau Veritas Total Capital to SMBs since 2013 (USD Billions) 25.5 projects with PayPal. Average International Remittance Costs (%) 2.9 Responsible Business Practices Annual Risk and Compliance training completed (%) 100 Environmental Sustainability Bureau Veritas UK Ltd GHG Scope 1 – Total 3.9 Registered in England & Wales, Company Number: 1758622 Emissions Registered Office: Suite 206 Fort Dunlop, Fort Parkway, Birmingham, B24 9FD (‘000 Scope 2 - Market-Based 6.7 3 London mtCO2e) Scope 2 - Location-Based 101.4 th Scope 3 - Emissions from business travel 6.2 April 27 , 2023 Scope 3 - Fuel and Energy Related Activities (FERA) - Market 8.8 Based Scope 3 - Fuel and Energy Related Activities (FERA) – Location 34.4 Based Scope 3 - Emissions from Employee Commuting and Remote 17 Working Energy Global Energy Use (renewable and non-renewable) (000’s 259.9 Use mWh) Renewable Energy as a % of total energy use 90 Renewable Energy as a % of data centre energy use 100 Water Water consumption (millions US gallons) 79.1 Science- Progress of reduction target in operational GHG Emissions (% -80.1 Based since 2019) Targets Vendors with science-based targets (% of vendors by spend) 38.8 9. Statement of Independence, Integrity and Competence Bureau Veritas is an independent professional services company that specialises in quality, environmental, health, safety and social accountability with over 190 years history. Its assurance team has extensive experience in conducting verification over environmental, social, ethical and health and safety information, systems and processes. 4 Bureau Veritas operates a certified Quality Management System which complies with the requirements of ISO 9001:2015, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical 5 International Standard on Quality Management 1 (Previously International Standard on Quality Control 1) & International Standard on Quality Management 2 6 International Federation of Inspection Agencies – Compliance Code – Third Edition 4 Certificate available on request 7 Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants ______________________________ ______________________________ Ref: BV_17935015 v2 Page 4 of 5 Ref: BV_17935015 v2 Page 5 of 5 Bureau Veritas | C2 - Internal Bureau Veritas | C2 - Internal

Additional Resources General Disclosures Responsible Business Social Innovation Employees & Culture Environmental Sustainability • Global Impact Website Practices • Values in Action • Employees & Culture • Environmental Sustainability • 2023 Proxy Statement & 2022 Annual Report • Responsible Business Practices • Small Business Spotlight Series • PayPal Careers • Environmental Sustainability Policy • Investor Relations • Security Center • MADE X PayPal Event • PayPal Global Benefits • PayPal’s 2022 CDP Climate Change • About PayPal • Trust & Privacy • Maggie Lena Walker Award • Diversity, Inclusion, Equity & Belonging Response • PayPal Newsroom • HackerOne Bug Bounty Program • PayPal Small Business Month • Supplier Diversity • TCFD Index • Corporate Governance • Privacy Statement • About PayPal Products • U.S. EEO-1 Reports • Policies and Other Disclosures • Privacy Hub • PayPal Giving Platform • PayPal’s Looking Up Podcast • Mission, Vision & Values • Data Management Principles • Business Resource Center • PayPal Votes • Family of Brands • Code of Business Conduct & Ethics • PayPal Case Studies • Community Impact Teams Thought Leadership • PayPal Global Markets • Third Party Code of Conduct & Ethics • The Role of Data Science in Maintaining • PayPal Ventures • Joint U.K. and Australia Modern Slavery Trust and Responsible Innovation Statement • Proactively Protecting Users from Phishing • Government Relations by Intentionally Triggering Cloaking Behavior • Political Engagement and Transparency • Trust and Access to Capital Policy • SME Economic Support in the Face of • Political Spending and Lobbying Disclosures Inflation: Payment Options & Discounts • Acceptable Use Policy • SME Economic Opportunity in the Face of • PayPal Law Enforcement Portal Inflation: Embracing Omnichannel Solutions • PayPal Tax Policy • SME Economic Opportunity in the Face of Inflation: Access to Capital • Legal Hub • PayPal and the Financial Wellness Initiative • PayPal Giving Experiments • Techniques to Defend Against Advanced Phishing • Carbon Finance Opportunity Brief • Investing in Our Planet and Taking Equitable Climate Action