PayPal's branded checkout segment grew just 2% in the second quarter, dragging down overall transaction margin dollars to a 1% increase even as total payment volume rose 10% year over year to $486 billion. CEO Enrique Lores said on the Q2 2026 earnings call that the company is raising its expectation for online branded checkout to the low-single-digit range for the year. The branded checkout business, which includes PayPal-branded checkout, Pay with Venmo, and eBay, accounted for 28% of PayPal's entire TPV and is its most profitable segment. Competition from Apple Pay, which has an estimated 900 million global users, is pressuring growth. PayPal's stock is down 81% from its 2021 peak as of August 12.
PayPal Holdings IncBranded checkout growth stalls at 2% due to Apple Pay competition, dragging margins.
eBay InceBay is part of PayPal's branded checkout segment, but no specific impact on eBay's own business.
