PARTI Item1. Business ANNU AL REPOR T PayPals payment solutions enable our customers to connect, transact, and send and receive payments, whether they are online or in person. We provide proprietary payment solutions accepted by merchants that enable the completion of payments on our platform on behalf of our customers. We operate a global, two-sided network at scale that connects merchants and consumers with 435 million active accounts (consisting of 400 million consumer active accounts and 35millionmerchantactiveaccounts)acrossmorethan200marketsasofDecember31,2022. Weoffer our customers the flexibility to use their PayPal or Venmo accounts to purchase and receive payments for goods and services, as well as the ability to transfer and withdraw funds. We enable consumers to exchange funds more safely with merchantsusingavarietyoffundingsources,whichmayincludeabankaccount,aPayPalorVenmoaccountbalance, PayPal and Venmo branded credit products including our installment products, a credit card, a debit card, certain cryptocurrencies, or other stored value products such as gift cards, and eligible rewards. Our PayPal, Venmo, and Xoom products also make it safer and simpler for friends and family to transfer funds to each other. We offer merchants an end-to-end payments solution that provides authorization and settlement capabilities, as well as instant access to funds and payouts. We also help merchants connect with their customers, process exchanges and returns, and manage risk. We help reduce the friction typically involved in cross-border commerce by offering consumers a simple payment experience andbyenablingmerchantstoextendtheirreachtoconsumersintheglobalmarketsinwhichourservicesareavailable. Weearn revenues primarily by charging fees for completing payment transactions for our customers and other payment- related services, which are typically based on the volume of activity processed on our payments platform. We also generaterevenuefromcustomersonfeeschargedforforeigncurrencyconversion,forinstanttransfersfromtheirPayPalor Venmoaccountto their bank account or debit card, and to facilitate the purchase and sale of cryptocurrencies; however, wegenerally do not charge customers to fund or draw from their accounts. We also earn revenue by providing other value added services, which are comprised primarily of revenue earned through partnerships, interest and fees from our merchant and consumer credit products, interest earned on certain assets underlying customer balances, referral fees, subscriptionfees, and gatewayservices. •2022AnnualReport 3