PayPal: > 10% Business Loans Not Current

PayPal finished 2025 with ~$2.2B in business loan originations, down from $3B the prior year. As of December 31, 2025, only 89.8% of their portfolio was current, down slightly from the prior year.

Charge-offs, however, are up significantly. The percentage excludes “fraud losses.”

PayPal’s CEO was replaced this week after the Board was disappointed by the company’s overall trajectory. Enrique Lores, the former president and CEO of Hewlett Packard, is now in the top spot. The upheaval was enough to prompt commentary from PayPal’s former president of the 2012-2014 era, David Marcus. On PayPal’s lending business specifically, Marcus offered this critique:

“On lending, PayPal missed the opportunity to turn it into a platform weapon. Products like Working Capital were conservative, short-duration, and optimized for loss minimization. Lending never became programmable, never became identity-driven, and never became a reason for merchants or consumers to choose PayPal over something else.”