Transaction margin dollar growth

Mentioned in all prior quarters (Q2, Q1, Q4) with growth of 4–8% and ~3-point contribution from interest income. Some normalization expected in the second half of each year. " " " " " "

Grew by 8% year-over-year, 6% ex-interest income. Interest benefit set to drop in Q4; focus remains on core levers like branded checkout, Venmo, Braintree, and loss performance. " " "

Consistently positive results, though interest income tailwind will fade into a headwind. " "

Braintree’s contribution and merchant deals

Discussed every quarter (Q2, Q1, Q4). Braintree shifted to focus on better margins and value-added services; merchant negotiations emphasize profitability. " " " " "

Second consecutive quarter of meaningful TMD contribution. Renewed merchant contracts aim for profitable revenue vs. high-volume, low-margin deals. " " "

Continued momentum around profitable growth, reinforcing strategic partnerships with merchants. " "

Venmo monetization efforts

Consistent mentions since Q4 2023. Debit card usage, Pay with Venmo, and Teen Accounts have steadily grown. Monetization hinges on increasing use of Venmo balances and card adoption. " " " " " " "

Positioned Venmo as a broader financial tool, highlighting debit card growth (+30% in monthly active debit card users) and Pay with Venmo. Emphasis on bundling with PayPal Checkout. "

Strengthening monetization via new features and focus on high-engagement products. "

Pricing changes for merchants

Recurring topic in past calls (Q2, Q1, Q4). PayPal has consistently shifted toward profitable pricing rather than race-to-the-bottom deals. Fastlane pricing still in early stages. " " " " "

Emphasis on a “price-to-value” strategy. Merchants receptive to profitable revenue growth over volume. Braintree margins improved under this model. " " "

Continues to evolve; merchants increasingly accept value-based pricing as PayPal adds services. " "

Improved mobile & consumer experiences (Fastlane)

Previously discussed each quarter (Q2, Q1, Q4) focusing on guest checkout improvements, mobile redesigns, and expansions to merchant platforms. " " " " " " "

Over 1,000 merchants using Fastlane, improved conversion (+400 bps in reworked mobile flow), and app switch success rates of 97% on iOS. Expansion anticipated through large enterprise adoption in 2025. " " "

Continued rollout with promising conversion gains; adoption expected to accelerate post-holiday. " "

PayPal Everywhere launch

No mention in Q2, Q1, or Q4 2023.

Newly introduced initiative enabling daily in-person purchases, cashback choices, and NFC capabilities. Early data suggests a 5x omni-channel spend increase within two weeks of sign-up. " " "

New topic in Q3 2024, offers omni-channel engagement and planned expansion to Europe. "

Ads platform for merchants

Mentioned in Q2, Q1, Q4 as an emerging solution to support end-to-end merchant needs (e.g., marketing, remarketing). " " " "

Cited as a key value-added service helping merchants target and acquire customers; part of broader strategy to offer more than just payment processing. " "

Continues to evolve; reinforces “price-to-value” approach by bundling more services for merchants. "

Interest income on balances & rate impacts

Main contributor to TMD growth since Q4 2023 but anticipated to decline as comps get tougher and rate environment changes. " " " " " " " " " "

~3 points boost to TMD in Q3. Expected to drop under 1 point in Q4. Potential headwinds in 2025 if rates are cut; a 25 bps cut reduces TMD by ~$40M. " " "

Tailwind turning headwind; PayPal shifting focus to operational metrics ex-interest. " "

Marketing investments affecting EPS

Similar theme in Q2 and Q1, where deferral of marketing spend impacts later quarters. No direct mention in Q4 2023. " "

Marketing push intentionally moved to Q4, reducing Q4 non-GAAP EPS by a low-to-mid single digit %; aims to boost product adoption (e.g., Venmo) for holiday season. "

Short-term EPS pressure from heavier second-half marketing but aiming for long-term gains. "

Competition from Apple Pay & alt. methods

PayPal addressed Apple Pay and alternatives in Q2, Q1, Q4, emphasizing large market share remains stable despite new entrants. " " "

No direct mention in Q3 2024.

No current mention; focus shifted to own product improvements.

Take rate pressures from merchant mix

Persistent topic in all prior quarters with similar downward pressure from enterprise volume gains, FX fees, and product mix shifts. " " " "

Take rate fell by 4 bps to 1.67% due to large enterprise growth and FX/payouts; Braintree margin gains partly offset these pressures. " "

Ongoing challenge as large enterprise growth outpaces SMB segment. " "

Regulatory changes in Europe (iOS/NFC)

Previously discussed in Q2, Q1, Q4 regarding European Commission’s push for more open NFC on iOS devices and PayPal’s readiness to deploy offline capabilities. " " "

Not mentioned in Q3 2024, aside from referencing possible NFC expansion for PayPal Everywhere in 2025. "

No direct Q3 mention beyond broad expansion plans.

Large untapped market & new user opportunities

Recurring topic in Q2, Q1, Q4, focusing on SMB solutions, teen accounts, and broadening acceptance to capture nonconsumption segments. " " " " "

Discussed growth via new partnerships (Fiserv, Adyen), expansion of SMB offerings, and G2C (guest-to-customer) conversions with Fastlane. Emphasis on omni-channel and Venmo to drive new users. " "

Continued bullish focus on broad market potential, fueling product expansions. "