PROPOSAL7:STOCKHOLDERPROPOSAL–PAYPALTRANSPARENCYREPORTS SupportingStatement ProponentssuggestthecompanyincludeinitsTransparencyReports,orexplainwhyitcannotdisclose: • Thesubstantivecontentofaccountsuspensiondecisions,bycountry,includingwhichindividualsorbusinessesmade requests;numberofaccountsremovedbycategorysuchas“encryptedcommunications,”VPN,etc.;andexternallegal PRO or policy basis and internal company criteria for removals; XY • Anyindiciaofimpact,suchasthenumberofprioraccountsuspensionwarningsandwhetherexistingusageofthe S T A accountwaseliminated; TEMENT • Anyeffortsbythecompanytomitigatetheharmfuleffects. PayPalsStatementinOpposition PAYPALSBOARDRECOMMENDSTHATSTOCKHOLDERSVOTEAGAINST THISPROPOSALFORTHEFOLLOWINGREASONS: PayPalisanindustryleaderinprovidingaffordable,convenientandsecurefinancialservicestocustomersof diversebackgroundsandviewpoints. PayPaliscommittedtoconsistentlymaintainingthehigheststandardsofintegrityinourimplementationofourpolicies, proceduresandprocesses,whichareintendedtoensurethatourservicesareprovidedfairlytoallourcustomers.PayPal hasbeenanindustryleaderinprovidingaccesstoinnovativefinancialproducts,andindemocratizingfinancialservicesto small andmedium-sizedbusinessesandentrepreneurswhorelyonourplatform,productsandservicestoreachtheirown customers.PayPalworkstoprovidehistoricallyunderbankedpopulationsandbusinessesaccesstocapital,especially thoseownedbyunderrepresentedentrepreneurs. PayPalconsistentlyemploysobjective,narrowlytailoredpoliciestoaddressaccountsuspensionandclosure,and thosepoliciesarebasedonensuringthesafetyofourcustomersandprotectingPayPalslegitimatebusiness interests. PayPaliscommittedtotheintegrityofourplatform,andtoensuringthesafety,securityandprivacyofourcustomersand others, while complyingwith legal requirements.PayPalsuspendsor closesaccountsinaccordancewithourobligations asaregulatedfinancialinstitutionandto ensurethesafetyof our platformandourcustomers.Specifically,PayPalsriskand complianceframeworkincludespoliciesandmonitoringmechanismstoidentifypotentialfraudandfinancialcrimes, includingmoneylaundering,sanctionsrisksandotherillegalactivities.Thecardnetwork,merchantacquirersandbanking partnersthat PayPal relies upon contractuallyto execute transactionsfor consumersand merchantsalso impose restrictions on the types of transactions that we can process on our platform. These partner obligations, and others, includingthoserequiredbylaw,aresetforthinourAcceptableUsePolicy(AUP),inconnectionwithourUserAgreement (UA). Collectively, these policies and accompanyingprocessesare intendedto protectPayPalscustomers,our platform andthepaymentsecosystemagainstillicitandharmfulactivitysuchascounterfeitingorfraud. Suspensionsandclosuresofcustomeraccountsareundertakentopreservetheintegrityofourplatformandtoprotectour customersandothersfromharm.PayPalimplementstheseandothermeasureswiththeaimofprovidingsafeand affordablefinancial servicesto people of all backgrounds,while, at the same time, supportingfreedomof expressionand inclusivity. PayPals policies are administeredwithout regard to viewpoint, identity, or belief. TheProposalcallsforchangesthatwouldundulyinterferewiththeoperationsofPayPalandtherebyharm stockholderinterests. TheProposalcallsforchangesthatwouldundulyinterferewithPayPalsbusinessoperationsandtherebyharmstockholder interests. Our ability to maintain and manage the accounts of our customers, including account suspensions and closures, is a fundamentalpartofourday-to-dayoperationsandisnecessarytomeetourcomplianceobligationsasafinancialservices company.PayPalspoliciesareintendedtoprotectourcustomersandtheCompanyfromillicitandharmfulactivityandto ensurethatwemeettheletterandspiritofthevariouslawsandregulationstowhichwearesubject.Ourdetailedpolicies regarding customeraccounts,includingwhencustomeraccountsmayberestrictedandwhatinformationmaybe communicatedtoanimpactedcustomer,aredesignedtobalancecompliancewiththecomplexregulationsandother considerations that enable PayPal to both meet our obligations under applicable laws and maintain the trust of our customers. Byimposingadditionaluniqueandambiguousreportingobligations,theProposalwouldundulylimitthediscretionofthe CompanysmanagementandinterferewiththeordinarybusinessandcomplianceoperationsoftheCompany. *** •2023ProxyStatement 103