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Changed Risks for PAYPAL HOLDINGS INC (PYPL)

Risk Factors That May Affect Our Business, Results of Operations, and Financial Condition

Our success largely depends on key personnel Because competition for our key employees is intense, we may not be able to attract, retain, and develop the highly skilled employees we need to support our business The loss of key personnel could harm our ability to maintain and grow our business

The following discussion is divided into three sections The first section, which begins immediately following this paragraph, discusses some of the risks that may adversely affect our business, results of operations and financial condition The second section, captioned “Risks Related to Our Separation from eBay” discusses some of the risks relating to our separation from eBay in July 2015 into an independent publicly traded company The third section, captioned “Risks Related to Our Common Stock,” discusses some of the risks relating to an investment in our Common Stock You should carefully review all of these sections in addition to the other information appearing in this Annual Report on Form 10-K, including our consolidated financial statements and related notes, for important information regarding risks and uncertainties that affect us The risks and uncertainties described below are not the only ones we face Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business

There are risks associated with our relationship with eBay

Our ability to receive the benefit of our business finance offerings may be subject to challenge

Cyberattacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition

PayPal is not a bank or licensed lender in the US and relies upon third parties to make loans and provide other products critical to our business, which raises additional risks

South Dakota v Wayfair, Inc

We are exposed to fluctuations in foreign currency exchange rates that could materially and adversely affect our financial results

“The United Kingdom's departure from the EU could adversely affect us”

Our international operations subject us to increased risks, which could harm our business

Catastrophic events or geopolitical conditions may disrupt our business

Risks Related to Our Separation from eBay

Changes in US tax laws could have a material adverse effect on our business, cash flow, results of operations, and financial conditions

Systems failures and resulting interruptions in the availability of our websites, applications, products, or services could harm our business

Some of our credit products expose us to additional risks

If the distribution, together with certain related transactions, does not qualify as a transaction that is generally tax-free for US federal income tax purposes under Sections 368(a)(1)(D) and 355 of the Internal Revenue Code (the “Code”), eBay, PayPal and eBay stockholders could be subject to significant tax liabilities

Madden v Midland Funding, LLC (

Cyberattacks and security vulnerabilities could result in serious harm to our reputation, business, results of operation, and financial condition

We face substantial and increasingly intense competition worldwide in the global payments industry

Our business is subject to extensive government regulation and oversight Our failure to comply with extensive, complex, overlapping, and frequently changing rules, regulations, and legal interpretations could materially harm our business

We are regularly subject to general litigation, regulatory actions, and government inquiries

If any of the following risks actually occur, our business, financial condition, results of operations, and future prospects could be materially and adversely affected