CompetitionGrowing competition from Square, Apple Pay, and BNPL firms could present a threat to PayPal’s dominance.
Economic ImpactAn economic downturn may lead to a decline in e-commerce volumes and consumer spending which will negatively affect PayPal’s total payment volume and earnings.
ProfitabilityTransaction margin has been in consistent year-over-year decline for 11 consecutive quarters, largely due to transaction expense growth outpacing transaction revenue since 2Q21.