Business Segments — Transaction expense
PayPal Holdings, Inc. Business Segments — Transaction expense decreased by 2.0% to $4.17B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 12.4%, from $3.70B to $4.17B. Over 3 years (FY 2022 to FY 2025), Business Segments — Transaction expense shows an upward trend with a 9.5% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
A decrease relative to revenue indicates improved cost efficiency or better negotiation with payment networks, while an increase suggests rising processing costs.
Detailed definition
These are the direct costs associated with processing payments, including interchange fees, assessments, and other netwo...
Peer comparison
Common among fintech and payment processing peers like Block or Adyen.
pypl_segment_reportable_segment_transaction_expenseHistorical Data
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $3.04B | $3.04B | $3.04B | $3.04B | $3.60B | $3.60B | $3.60B | $3.60B | $3.92B | $3.94B | $3.84B | $4.00B | $3.70B | $3.97B | $4.06B | $4.25B | $4.17B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +18.2% | +0.0% | +0.0% | +0.0% | +8.9% | +0.6% | -2.6% | +4.1% | -7.3% | +7.1% | +2.4% | +4.7% | -2.0% |
| YoY Change | — | — | — | — | +18.2% | +18.2% | +18.2% | +18.2% | +8.9% | +9.6% | +6.8% | +11.1% | -5.4% | +0.7% | +5.8% | +6.4% | +12.4% |
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Frequently Asked Questions
- What is PayPal Holdings, Inc.'s business segments — transaction expense?
- PayPal Holdings, Inc. (PYPL) reported business segments — transaction expense of $4.17B in Q1 2026.
- How has PayPal Holdings, Inc.'s business segments — transaction expense changed year-over-year?
- PayPal Holdings, Inc.'s business segments — transaction expense increased by 12.4% year-over-year, from $3.70B to $4.17B.
- What is the long-term trend for PayPal Holdings, Inc.'s business segments — transaction expense?
- Over 3 years (2022 to 2025), PayPal Holdings, Inc.'s business segments — transaction expense has grown at a 9.5% compound annual growth rate (CAGR), from $12.17B to $15.99B.
- What does business segments — transaction expense mean?
- The direct costs incurred to process customer transactions.