The stable outlook reflects S&P Global Ratings' expectation that PayPal Holdings, Inc. will continue to benefit from low-to-mid-teen growth in its payment volumes and will keep expanding its unsecured lending to customers. We could lower the rating if operating margins decrease, payment volumes lag behind industry due to competitors moving into the PayPal space, credit volumes grow faster than expected (indicating higher risk), or if additional threat is introduced through higher-risk funding or a liquidity mismatch in its Luxembourg bank subsidiary. This could occur, for example, if the bank were to fund the expansion of the loan book by relying on short-term wholesale funding. We could raise the rating if PayPal's competitive advantage improves, for example through a successful product
