INDEX / DIRECTORY / PAYPAL / ECONOMIC

PayPal ECONOMIC

ECONOMIC AUDIT UPDATED 2026-09-07
Economic Score 5.66 /10 B PayPal - BDS-1000 708
Economic 5.66

Evidence-only forensic audit. Scoring happens downstream - see the main dossier for the composite assessment.

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Supply Chain & Sourcing Relationships

No public evidence identified.

The reviewed acquisition disclosures, Israeli legal materials, and SEC filings describe payment services and technology acquisitions rather than commercial sourcing relationships with Israeli agricultural exporters, importer-of-record arrangements, seasonal-produce procurement, or white-label product sourcing 1, 2, 3, 4, 5.

No public evidence identified.

The reviewed materials do not establish PayPal procurement from Israeli suppliers for retail goods, manufacturing inputs, or third-party branded products 1, 6, 7, 5.

Product Origin, Labeling & Regulatory Compliance

No public evidence identified.

The reviewed records do not identify settlement-origin goods, country-of-origin labelling policies or conduct, product sourcing, or related regulatory enforcement involving PayPal 1, 2, 3, 4, 5.

PayPal’s Israel materials describe the provision of payment services through a locally regulated entity rather than retail-goods sales or goods-labelling activities 4, 8.

As of 6 July 2026, PayPal’s Israel user agreement identifies PayPal Israel Payments Services Ltd., company number 516478872, as the provider offering PayPal services in Israel and states that it is licensed and regulated by the Israel Securities Authority as a Payment Service Provider 4.

The Israel migration FAQ states that customer accounts would move from PayPal Pte. Ltd. to PayPal Israel Payment Services Limited under direct Israel Securities Authority supervision 8.

The same FAQ states that PayPal charges VAT on fees under the Israeli VAT Act when services are provided through the locally established regulated entity 8.

Investment, Capital & Financial Exposure

On 28 January 2008, PayPal agreed to acquire Fraud Sciences Ltd., described in the announcement as a privately held Israeli provider of online-risk tools, for aggregate cash consideration of approximately $169 million 1.

The Fraud Sciences announcement stated that specified founders and personnel would join PayPal’s technology and fraud-management teams, but the reviewed announcement does not itself confirm closing or establish the business’s current ownership or operating status 1.

A 23 April 2015 eBay Form S-8 identifies a 6 March 2015 share-purchase agreement among PayPal Israel Ltd., CyActive Security Ltd., CyActive shareholders, and their representative, and identifies both companies as Israeli 6.

eBay’s Form 10-Q states that its Payments segment completed acquisitions of CyActive and Paydiant during the quarter ended 30 June 2015 for aggregate consideration of approximately $281 million 7.

The filing describes CyActive as a cybersecurity firm whose acquisition was intended to enhance PayPal’s risk-assessment capabilities, while not allocating the aggregate consideration between CyActive and Paydiant 7.

PayPal announced an agreement to acquire Tel Aviv-based Curv on 8 March 2021 and stated on 5 April 2021 that the acquisition had completed 2.

PayPal described Curv as a provider of cloud-based digital-asset-security infrastructure that would join its blockchain, crypto, and digital-currencies business unit, while not disclosing deal terms 2.

PayPal announced the acquisition of Tel Aviv-headquartered Cymbio on 22 January 2026 and stated that the transaction completed on 5 February 2026 3.

PayPal stated that Cymbio’s team and technology would enable its Store Sync service, while not disclosing transaction terms 3.

No public evidence identified.

The reviewed corporate disclosures do not identify PayPal underwriting Israeli sovereign debt or Israel Bonds, providing lending or trade-finance facilities to Israeli defence primes or OHCHR-listed companies, underwriting insurance, or disclosing holdings in Israeli sovereign debt, arms companies, or settlement-active companies 5.

Operational Presence & Market Activity

PayPal Israel Payments Services Ltd. is identified in PayPal’s Israel user agreement as the local payment-service provider, and the agreement gives company number 516478872 4.

The agreement directs notices to PayPal Israel Payment Services Ltd. at 98 Yigal Alon Street, 18th Floor, Tel Aviv-Yafo 6789141, Israel 4.

PayPal’s Israel migration FAQ gives the entity’s address as 98 Yigal Alon Street, Tel Aviv-Yafo 6789141 and describes the local entity as operating under direct Israel Securities Authority supervision 8.

No public evidence identified.

The reviewed Israel legal materials do not identify PayPal offices, merchant operations, authorized resellers, or service arrangements specifically located in West Bank settlements, East Jerusalem settlements, or the Golan Heights 4, 8.

PayPal’s FY2025 Form 10-K reports 439 million active accounts across approximately 200 markets but does not provide Israel-specific workforce, revenue, or market-share figures 5.

The task-supplied document-scoped pre-scan reported no PayPal full-text mention in the specified NGO and UN reports, but this result does not establish database-wide absence 9.

OHCHR announced an update to its database of businesses involved in Israeli settlements on 26 September 2025 9.

Corporate Structure & Foundational Ties

PayPal Holdings, Inc. is incorporated in Delaware and reports principal executive offices at 2211 North First Street, San Jose, California 95131 5.

PayPal’s FY2025 Form 10-K states that references to “PayPal,” “the Company,” “we,” “us,” and “our” refer to PayPal Holdings, Inc. and its consolidated subsidiaries 5.

The reviewed primary records establish a Delaware-incorporated parent with California principal executive offices, a locally regulated Israeli payment-services entity, and completed acquisitions of Tel Aviv-based businesses 2, 3, 4, 5.

No public evidence identified.

The reviewed materials do not support a finding that PayPal Holdings, Inc. was founded in Israel, headquartered in Israel, Israeli tax-resident, state-owned, or controlled by Israeli capital 5, 10.

PayPal’s Israel materials establish that PayPal Israel Payment Services Ltd. operates as a local licensed payment-service provider, but they do not disclose its ownership percentage within the PayPal group 4, 8.

PayPal’s FY2025 Exhibit 21 lists significant subsidiaries and states that it omits subsidiaries not significant individually or in the aggregate 10.

The omission of an Israeli entity from that significant-subsidiary exhibit cannot establish the absence of an Israeli PayPal subsidiary or the current legal status of acquired Israeli businesses 10.

No public evidence identified.

The reviewed materials do not identify Israeli state ownership, Preferred Technology Enterprise status, government board appointees, Israeli government contracts, critical-national-infrastructure designation, golden shares, special charter rights, or governance provisions structurally tying PayPal to Israeli state policy 5, 10.

PayPal appointed Enrique Lores as President and CEO effective 1 March 2026 and David W. Dorman as independent Board Chair effective February 2026 11, 12.

PayPal’s 2026 proxy identifies 11 director nominees and identifies Lores as the only non-independent nominee 11.

The proxy’s disclosed-major-holder table lists Vanguard at 10.05% and BlackRock at 8.06%, while also stating that Vanguard’s 27 March 2026 Schedule 13G/A reported no beneficial ownership after an internal reorganization and that the BlackRock figure was based on a January 2024 filing 11.

PayPal’s October 2024 political-engagement policy assigns oversight of political contributions, lobbying, and government interactions to the Board’s Corporate Governance and Nominating Committee, the Chief Risk Officer, and the Vice President of Global Government Relations 13.

The policy states that PayPal PAC reports donations quarterly to the FEC, corporate contributions are limited to jurisdictions where legal, and required federal and state lobbying disclosures are filed 13.

The policy contains no Israel-specific reference 13.

PayPal’s 2026 proxy includes a shareholder proposal concerning alleged discriminatory exclusion from financial services in conflict zones, naming Palestine as an example, and attributes the supporting assertions to the proponents 11.

PayPal’s Board recommended voting against the proposal, stating that market-entry decisions are evaluated case by case using factors including opportunity, demand, financial impact, competition, costs, risks, regulatory and compliance requirements, and partner relationships 11.

No public evidence identified.

The reviewed governance filings, political-policy documentation, shareholder-proposal record, targeted source review, and task-supplied canonical-report scan do not establish PayPal corporate political spending specifically tied to Israel or Palestine 11, 12, 13, 9.

Profit Repatriation & Economic Contribution

PayPal’s FY2025 Form 10-K states that it is subject to tax in multiple foreign jurisdictions and identifies Israel as a material jurisdiction under tax examination for years after 2012 5.

The Form 10-K does not disclose Israeli revenue, tax paid, profit, workforce, or a quantified Israel-specific repatriation flow 5.

The Form 10-K states on a consolidated basis that repatriation of foreign earnings for U.S. use is generally not expected to result in significant income taxes, without attributing that statement to Israel or identifying Israeli earnings 5.

No public evidence identified.

The reviewed materials do not identify an official or industry designation of PayPal as a key employer, sector anchor, or critical-infrastructure provider in Israel 5.

Footnotes

  1. https://newsroom.paypal-corp.com/2008-01-28-PayPal-Agrees-to-Acquire-Fraud-Sciences-Ltd ↩ ↩2 ↩3 ↩4 ↩5

  2. https://newsroom.paypal-corp.com/2021-03-08-PayPal-to-Acquire-Curv ↩ ↩2 ↩3 ↩4 ↩5

  3. https://newsroom.paypal-corp.com/2026-01-22-PayPal-to-Acquire-Cymbio,-Accelerating-Agentic-Commerce-Capabilities ↩ ↩2 ↩3 ↩4 ↩5

  4. https://www.paypal.com/il/legalhub/paypal/useragreement-full?locale.x=en_IL ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9

  5. https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/pypl-20251231.htm ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14

  6. https://www.sec.gov/Archives/edgar/data/1065088/000119312515140163/d913057ds8.htm ↩ ↩2

  7. https://www.sec.gov/Archives/edgar/data/1065088/000106508815000186/ebay10-qq22015.htm ↩ ↩2 ↩3

  8. https://www.paypal.com/il/cshelp/article/israel-legal-entity-migration---frequently-asked-questions-faqs - help1373?locale.x=en_IL ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  9. https://www.ohchr.org/en/press-releases/2025/09/un-human-rights-office-updates-database-businesses-involved-israeli ↩ ↩2 ↩3

  10. https://www.sec.gov/Archives/edgar/data/1633917/000163391726000024/exhibit2101subsidiarylistf.htm ↩ ↩2 ↩3 ↩4

  11. https://www.sec.gov/Archives/edgar/data/1633917/000119312526145721/d59508ddef14a.htm ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  12. https://www.sec.gov/Archives/edgar/data/1633917/000119312526035860/d68718d8k.htm ↩ ↩2

  13. https://s205.q4cdn.com/210152132/files/doc_downloads/politicalTransparency/2024/10/Political-Engagement-and-Transparency-Policy-2024.pdf ↩ ↩2 ↩3 ↩4