PayPal Annual Operating Expenses by Type

The below graph represents PayPal annual operating expenses by type, starting from fiscal 2012 to the recently completed year. PayPal Transaction expense reached an all-time high of $6,790 million in 2019, representing 45% of the company's total expenses.

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The above graph represents PayPal annual operating expenses by type, starting from fiscal 2012 to the recently completed year. In 2019, PayPal’s total operating expenses increased 13.6% YoY to $15,053 million. PayPal Transaction expense increased 21.7% YoY in 2019, to a record-high of $6,790 million.

SourcePayPal Annual Reports
Graph ID648
NotePayPal fiscal year starts from January 1st

PayPal Technology and development expenses also increased 13.9% YoY in 2019, to reach an all-time high of $2,085 million.

PayPal General and administrative expenses (include costs incurred to provide support to the company’s human resources, finance, risk, compliance, executive, and other support operations) increased to $1,711 million in 2018, from $1,541 million in 2017.

PayPal Transaction and Loan losses increased a considerable 8.3% YoY in 2019, to $1,380 million. The transaction losses include the expense associated with the company’s buyer and seller protection programs, fraud, and chargebacks. And, the loan losses include the losses associated with the PayPal’s merchant and consumer loans receivable portfolio, except loans and interest receivable, held for sale.

About PayPal Holdings, Inc.

Founded in December 1998 as Confinity Inc., by Max LevchinPeter ThielLuke Nosek, and Ken Howery, PayPal Holding Inc. (NASDAQ: PYPL) was funded by John Malloy from BlurRun ventures.

However, it was March 2000, when Confinity merged with, an online banking company founded by Elon Musk in November 1999. The visionary Musk was quick to visualise the future potential of the money transfer business Confinity was developing. In contrast to that, Bill Harris, the then-president and CEO of, didn’t find much merit in Musk’s thoughts. Soon, Harris decided to part ways was Musk was determined to stay focused on Confinity money transfer service. He was so committed that he terminated the company’s all other Internet banking operations in order to remain focused on the money transfer business. 

All these shifts created an impact on Elon Musk’s position in the company he was replaced by Peter Thiel as CEO of In the following year, the was renamed as PayPal.

The astounding growth of PayPal convinced executives to launch the IPO of PayPal in 2002. After the celebrated acquisition by eBay Inc. (NASDAQ: EBAY) in July 2020 which valued PayPal $1.5 billion – 7% above the IPO price – it was clear that PayPal is en route to become a global leader in money transfer business.

After thirteen years of being under the umbrella of eBay, PayPal once again became an independent publicly traded company.

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