PayPal’s total payment volume grew 10% year-over-year in Q2, yet its branded checkout segment rose only 2%, weighing on revenue growth.
PayPal reported a 10% year-over-year increase in total payment volume (TPV) to $486 billion in Q2, driven by 14% growth at Venmo and 13% at its payment service provider line. However, revenue rose just 5%, as its branded checkout segment—including PayPal-branded checkout and Pay with Venmo—climbed only 2%, accounting for 28% of total TPV.
The branded checkout segment, historically a key revenue driver, saw annualized TPV growth of 26% from 2018 to 2021 but slowed to 5% in 2022. Analysts expect PayPal to generate $6 billion in free cash flow in 2026 on $34.7 billion in revenue, though its stock remains 81% below its 2021 peak.
Weakness in branded checkout has offset gains in other segments, contributing to investor disappointment despite consistent TPV growth.