PARTI Item1. Business KeyPerformanceMetrics Wemeasure the scale of our platform and the relevance of our products and services to our customers through certain metrics,includingtotal paymentvolume,paymenttransactions,andactiveaccounts: Total paymentvolume(“TPV”)isthevalueofpayments,netofpaymentreversals,successfullycompletedonourpayments platformorenabledbyPayPalviaapartnerpaymentsolution,notincludinggateway-exclusivetransactions. Number of payment transactions are the total number of payments, net of payment reversals, successfully completed on ourpaymentsplatformorenabledbyPayPalviaapartnerpaymentsolution,notincludinggateway-exclusivetransactions. An active account is an account registered directly with PayPal or a platform access partner that has completed a transaction on our platform, not including gateway-exclusive transactions, within the past 12 months. A platform access partner is a third party whose customers are provided access to PayPals platform or services through such third-partys login credentials, including individuals and entities that utilize Hyperwallets payout capabilities. A user may register on our platform to access different products and may register more than one account to access a product. Accordingly, a user mayhavemorethanoneactiveaccount.Thenumberofactiveaccountsprovidesmanagementwithadditionalperspective ontheoverallscaleofourplatform,butmaynothaveadirectrelationshiptoouroperatingresults. OurStrengths Ourbusinessisbuiltonastrongfoundationdesignedtodrivegrowthanddifferentiateusfromourcompetitors.Acritical elementofouroverallgrowthstrategyinvolvesincreasingtheengagementofouractiveaccounts,whichweexpectwill contributeto growthin paymenttransactions,totalpaymentvolume,andnetrevenues.Webelievethatourcompetitive strengthsincludethefollowing: • Two-sided network—our payments platform connecting merchants and consumers enables PayPal to offer unique end-to-end product experiences while gaining valuable insights into how our customers use our platform. Our payments platform provides for digital and in-store (at the point of sale) transactions while being both technology and platformagnostic. • Merchant and consumer choice—our branded and unbranded card processing payment solutions support an open ecosystem that provides choice to both merchants and consumers, enabling flexibility to make and receive payments usingawidevarietyofdifferentfundingoptionsanddigitalwalletsolutions. • Scale—ourglobalscalehelpsustodriveorganicgrowth.AsofDecember31,2022,wehad435millionactiveaccounts, consisting of 400 million consumer active accounts and 35 million merchant active accounts in more than 200 markets 4 •2022AnnualReport