PayPal Resets Business Model with Focus on Financial Services

PayPal's President and Chief Executive Officer Enrique Lores outlined a wide-ranging reset in its business model at the Goldman Sachs Communacopia + Technology Conference. The company is shifting away from branded checkout and toward financial services, consumer products, and value-added services.

The goal is to build on assets that remain hard to copy, including PayPal's global scale, two-sided network, and loyal customer base. Lores said the company had become too complex and too focused on merchants, leaving the consumer side underdeveloped.

Venmo remains a key growth engine, with revenue above $1.7 billion in 2025 and seven straight quarters of double-digit TPV growth. The company is targeting at least $1.5 billion in gross run-rate cost savings over two to three years through organizational restructuring and technology modernization.

PayPal is positioning itself as a trust layer for agentic commerce, where identity checks and fraud prevention may become more important. The company's past structure created friction due to many businesses and systems being built separately through acquisitions.