PYPL

PayPal Holdings Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is PYPL Halal?

Payment network with direct consumer-credit products; conservative liquidity and receivables ratios exceed examined limits.

What You Should Know

PayPal's March 31, 2026 Form 10-Q shows $80,546 million of assets, $10,876 million of debt, $29,607 million of cash plus short-term and available-for-sale debt securities, and $48,874 million of broad receivables. PayPal Credit and interest-bearing installment products create direct riba concerns; exact prohibited revenue is not separately disclosed.

⚠️ Concerns

  • PayPal Credit and interest-bearing installment products
  • Pay Later structures vary by product and merchant subsidy
  • Customer funds, lending receivables and conventional treasury investments

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
13.50%Within limit
Below 33.333% under FTSE Yasaar

10,876 / 80,546

Cash + interest-bearing securities / assets
36.76%Above limit
Below 33.333% under FTSE Yasaar

29,607 / 80,546

Receivables + cash / assets
69.34%Above limit
Below 50% under FTSE Yasaar

55,851 / 80,546

Non-compliant income / revenue
1.28%Within limit
No more than 5% under FTSE Yasaar

107 / 8,353

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Conservatively including short-term investments, liquidity/assets is 36.76% and receivables-plus-cash/assets is 69.34%, above examined limits; direct interest-bearing credit activity is also material.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Conservative liquidity and receivables-plus-cash ratios exceed the examined MSCI total-assets thresholds, and the business includes direct consumer-credit products.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Conservative liquidity/assets exceeds the examined Malaysia SAC limit, while the activity screen remains qualified by material credit products. This is a calculation against SAC ratios, not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A licensed historical market-cap series is not stored, so market-cap denominator methods are not estimated from a spot price.

Business-activity disclosure

PayPal operates a payments and digital-wallet network but also originates or facilitates consumer credit, PayPal Credit, Pay Later and installment products.

Limitation: PayPal does not provide a reproducible prohibited-revenue allocation across transaction processing, interest-bearing credit, merchant subsidies, wallet balances and other products.

Purification

Disclosed investment income is 1.28% of quarterly revenue, but PayPal does not isolate all income connected to credit products. ZakatInvest does not prescribe a fixed purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from PayPal's March 31, 2026 Form 10-Q.
  • Debt is long-term debt. Liquidity includes short-term investments and available-for-sale debt securities.
  • Receivables are conservatively represented by accounts receivable, loans held for sale, loans and interest receivable, and funds receivable and customer accounts; customer balances are not assumed to be Sharia-compliant trade receivables.
  • The filing describes PayPal Credit and installment credit products, including interest-bearing installment loans. Exact prohibited revenue is not separately disclosed; investment income is used as the disclosed income proxy.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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