PARTI Item1A.RiskFactors Businessinterruptionsorsystemsfailuresmayimpairtheavailabilityofourwebsites,applications, productsorservices,orotherwiseharmourbusiness. Oursystemsandoperationsandthoseofourserviceprovidersandpartnershaveexperiencedfromtimeto time,andmay experiencein the future, business interruptions or degradationof service because of distributeddenial-of-serviceand other cyberattacks, insider threats, hardware and software defects or malfunctions, human error, earthquakes, hurricanes, floods, fires, and other natural disasters, public health crises (including pandemics), power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, computer viruses or other malware, or other events. The frequency and intensity of weather events related to climate change are increasing,which could increase the likelihood and severity of such disasters as well as related damage and business interruption. Our corporate headquarters are located in the San Francisco Bay Area, a seismically active region in California. A catastrophic event that could lead to a disruption or failure of our systems or operations could result in significant losses and require substantial recoverytime and significant expendituresto resume or maintain operations. Further, some of our systems, including those ANNU of companies that we have acquired, are not fully redundant and any failure of these acquired systems, including due to a catastrophic event, may lead to operational outages or delays. While we engage in disaster recovery planning and testing AL intended to mitigate risks from outages or delays, our planning and testing may not be sufficient for all possible outcomes REPOR or events. As a provider of payments solutions, we are also subject to heightened scrutiny by regulators that may require specific business continuity, resiliency and disaster recovery plans, and rigorous testing of such plans, which may be costly and time-consuming to implement, and may divert our resources from other business priorities. Any of the foregoing risks T couldhaveamaterialadverseimpactonourbusiness,financialcondition,andresultsofoperations. Wehaveexperienced,and expect to continue to experience, system failures, cyberattacks, unplanned outages, and other events or conditions from time to time that have and may interrupt the availability, or reduce or adversely affect the speed or functionality, of our products and services and result in loss of revenue. A prolonged interruption of, or reduction in, the availability, speed, or functionality of our products and services could materially harm our business. Frequent or persistent interruptions in our services could permanently harm our relationship with our customers and partners and our reputation. If anysystemfailureorsimilareventresultsin damagetoourcustomersortheirbusinesspartners,theycouldseeksignificant compensation or contractual penalties from us for their losses. These claims, even if unsuccessful, would likely be time- consumingandcostlyforustoaddress. We continue to undertake system upgrades and re-platforming efforts designed to improve the availability, reliability, resiliency, and speed of our payments platform. These efforts are costly and time-consuming, involve significant technical complexity and risk, may divert our resources from new features and products, and may ultimately not be effective. Frequentorpersistentsite interruptionscould lead to regulatory scrutiny, significant fines and penalties, and mandatory and costly changes to our business practices, and ultimately could cause us to lose existing licenses that we need to operate or preventor delay us from obtainingadditionallicensesthat may be requiredfor our business. Wealsorely on facilities, components, applications, software, and services supplied by third parties, including data center facilities and cloud data storage and processing services. From time to time, we have experienced interruptions in the provision of such facilities and services provided by these third parties. If these third parties experience operational interference or disruptions (including a cybersecurity incident), fail to perform their obligations, or breach their agreements with us, our operations could be disrupted or otherwise negatively affected, which could result in customer dissatisfaction, regulatory scrutiny, and damage to our reputation and brands, and materially and adversely affect our business. While we maintain insurance policies intended to help offset the financial impact we may experience from these risks, our coverage may be insufficient to compensate us for all losses caused by interruptions in our service due to systems failures and similar events. In addition, any failure to successfully implement new information systems and technologies,or improvementsor upgrades to existing information systems and technologiesin a timely manner could adverselyimpact our business,internal controls, results of operations, and financial condition. If we cannot keep pacewithrapidtechnologicaldevelopmentstoprovidenewandinnovative productsandservices,theuseofourproductsandservicesand,consequently,ourrevenues,could decline. Rapid, significant, and disruptive technological changes impact the industries in which we operate, including payment technologies (including real-time payments, payment card tokenization, virtual currencies, distributed ledger and blockchain technologies, and proximity payment technology such as Near Field Communication and other contactless payments); internet browser technologies, that enable users to easily store their payment card information for use on any retail or e-commerce website; artificial intelligence and machine learning; developments in technologies supporting our regulatoryandcomplianceobligations;andin-store,digital,andsocialcommerce. •2022AnnualReport 15