PayPal: Business Loan & Working Capital Merchants Have Higher Retention Rate

Businesses that use PayPal’s Working Capital or business loan products have a 15% higher retention rate with PayPal’s payment processing product than those that don’t. That’s according to a study they conducted on 2025 data that they revealed in their Q3 2026 earnings report. The company also shared that their merchant lending business is growing.

Stripe had previously made a bid to acquire PayPal this summer but a deal never happened. PayPal has been trying to turn its business around ever since it brought on a new CEO earlier this year. AI is part of that strategy.

“We have reduced headcount by more than 2,000 and removed three organizational layers across most areas of the company,” said Enrique Lores, the CEO of PayPal during the Q3 earnings call. “We are also using AI and automation to drive productivity. For example, our AI chat agents now support customer service across 190 countries and six languages and have resolved more than 24 million contacts year-to-date.”