PayPal’s BNPL Boom: How Is It Winning Over Gen Z Shoppers?

PayPal’s third-quarter 2025 financial performance and strategic direction reveal a nuanced picture with both notable achievements and ongoing challenges. The company has demonstrated impressive progress in strengthening its foundational operations and focusing on profitable growth. Revenue has accelerated recently, stemming from strategies centered on expanding branded experiences, buy now, pay later (BNPL) services, and increased Venmo monetization. The company has seen branded experiences total payment volume (TPV) growth, recorded at a solid 8% on a currency-neutral basis. Venmo, a crucial growth lever, achieved a TPV growth rate of 14%, with significant adoption spikes seen in services like the Venmo debit card and Pay with Venmo. However, despite these achievements, PayPal’s transaction take rate has declined slightly due to product and merchant mix challenges. This suggests pressures in maintaining margin health amidst expansion efforts.