- 1PayPal originated about $2.2B in business loans in 2025, versus $3B the year before.
- 2Only 89.8% of the portfolio was current on Dec. 31, 2025.
- 3Enrique Lores, formerly of HP, replaced PayPal's CEO this week.
PayPal wrote roughly $2.2 billion in business loans in 2025, down from $3 billion a year earlier, and a smaller share of that book is performing. As of Dec. 31, 2025, 89.8% of the portfolio was current, a slight decline from the prior year.
Credit quality
Charge-offs rose significantly over the same period. The percentage cited excludes fraud losses, so the full loss picture is likely larger than the headline figure suggests.
A new CEO and an outside critique
The numbers landed in the same week PayPal replaced its chief executive. The board was disappointed with the company's overall trajectory, and Enrique Lores, the former president and CEO of Hewlett Packard, now holds the top job.
The shake-up drew public commentary from David Marcus, who served as PayPal's president from 2012 to 2014. On lending specifically, he argued that products such as Working Capital were conservative, short in duration and built to minimize losses. In his view, lending never became programmable or identity-driven, and never gave merchants or consumers a reason to pick PayPal over a competitor.
The combination of lower volume, a softer current rate and rising charge-offs puts PayPal's small business lending arm under fresh scrutiny as new leadership settles in.
Source reporting: deBanked.
