PARTI Item1. Business Secteur Financier (the “CSSF”), the U.K. Financial Conduct Authority (“FCA”), the Australian Prudential Regulation Authority, the Peoples Bank of China, the Monetary Authority of Singapore, the Reserve Bank of India, the Central Bank of Russia, and the Central Bank of Brazil have asserted jurisdiction over some or all of our activities in their respective jurisdictions. This list is not exhaustive, and there are numerous other regulatory agencieswhich have assertedor may assertjurisdictionover our activities. In addition, financial services regulators in various jurisdictions, including the U.S. and the European Union (“EU”), have implementedauthenticationrequirementsforbanksandpaymentprocessorsintendedtoreduceonlinefraud,whichcould imposesignificant costs, make it more difficult for new customers to open PayPal accounts, and reduce the ease of use of ourproducts. BankingAgencySupervision WeserveourcustomersintheEUandU.K.throughPayPal(Europe)S.à.r.l.etCie,S.C.A.(“PayPal(Europe)”),awholly-owned subsidiary that is licensed and subject to regulation as a credit institution in Luxembourg by the CSSF. Under the U.K.s Temporary Permissions Regime, PayPal is deemed to be authorized and regulated by the U.K. FCA as a result of Brexit. Consequently, we must comply with rules and regulations of the European banking industry, including those related to capitalization, funds management, corporate governance,anti-money laundering, disclosure, reporting,and inspection.We are, or may be, subject to banking-related regulations in other countries now or in the future related to our role in the financial industry. In addition, based on our relationships with our partner financial institutions, we are, or may be, subject to indirect regulation and examinationby the regulatorsof these partnerfinancial institutions. LendingRegulation Our U.S. consumer short-term, interest-free, installment product is subject to federal and state laws governing consumer credit and debt collection. PayPal holds multiple state licenses as the lender of this product. Paidy, Inc. holds multiple licenses for the issuance of its consumer installment products in Japan and is registered with the Ministry of Economy, Trade and Industry as a Comprehensive Credit Purchase Intermediary. In Australia, PayPal Credit Pty Limited offers a consumer short-term, interest-free, installment product that is exempt from regulation by the primary consumer credit legislation, but is subject to other laws which cover the provision of financial services, credit reporting, debt collection, and privacy. PayPals consumer short-term, interest-free, installment products in the U.K., France, Germany, Spain, and Italy are generally exempt from primary consumercreditlegislation;however,certainconsumerlendinglaws,consumerprotection, andbankingtransparencyregulationsapplytothisactivity. Our U.S. consumer interest-bearing installment product is subject to federal and state laws and is offered by an independent chartered financial institution. PayPals interest-bearing installment product for consumers in Germany is subject to applicable local laws such as consumer (lending) laws, consumer protection, or banking transparency regulations. These loans are originated by PayPal (Europe). PayPal and Venmo co-brandedconsumercreditcardsandthePayPalCreditrevolvingconsumercreditproductareissued by an independent chartered financial institution in the U.S., and are subject to laws and regulations governing these programs. PayPal Credit in the U.K. is a regulated, revolving consumer credit product subject to applicable local laws and regulations. Our U.S. merchant lending products are subject to federal and state regulations and are offered by an independent chartered financial institution. Our merchant lending products offered in Germany, France and the Netherlands are subject to the laws of Luxembourg and certain local laws, and our merchant lending product offered in the U.K. is subject to U.K. regulation. The loans offered to European and U.K. merchants are originated by PayPal (Europe). Our merchant lending productinAustraliais subjectto the laws of Australia and originatedby PayPal Credit Pty Limited. ConsumerFinancialProtectionBureau(“CFPB”) TheCFPBhassignificantauthority to regulate consumer financial products in the U.S., including consumer credit, deposits, payments, and similar products. As a large market participant of remittance transfers, the CFPB has direct supervisory authority over our business. The CFPB and similar regulatory agencies in other jurisdictions may have broad consumer protection mandates that could result in the promulgation and interpretation of rules and regulations that may affect our business. Anti-MoneyLaundering,Counter-TerroristFinancing,andSanctions PayPal is subject to anti-money laundering (“AML”) laws and regulations in the U.S. and other jurisdictions, as well as laws designedtopreventtheuseofthefinancialsystemstofacilitateterroristactivities.Our AML programis designedto prevent our paymentsplatform from being used to facilitate money laundering, terrorist financing, and other illicit activities, or to do 10 •2022AnnualReport