PayPal Q2 2026: branded checkout up 2% for a second quarter, European markets stabilise

PayPal reported second-quarter 2026 results on 28 July 2026. Online branded checkout volume grew 2% on a currency-neutral basis for a second consecutive quarter, and the company raised its full-year branded checkout outlook to low-single-digit growth. Management said core European markets improved sequentially, though slightly less than the US, which was helped by buy-now-pay-later and Pay with Venmo; European performance was described as stable with some pressure in the travel vertical.

BNPL volume rose 26% and PayPal raised its full-year profit outlook. Finance chief Jamie Miller guided to roughly 2% branded checkout growth again in the third quarter and low-single-digit growth across the second half, and said the company is investing in loyalty, upgrading checkout experiences and bringing BNPL innovations to Europe.

PayPal is still the default online wallet in Germany and a large share of European e-commerce checkout, so 2% growth is the number every account-to-account challenger is measured against. Wero's German push, Lidl and now Amazon, is aimed squarely at this volume, and a PayPal that is stable rather than declining sets a realistic ceiling on how quickly A2A can take share.

It also sharpens the strategic question behind the Stripe and Advent bid the board has already deemed inadequate: the European franchise is defensible but not growing, which is exactly the profile an acquirer would argue it can fix.

Whether European branded checkout holds at low-single-digit growth once Wero is live at Amazon Germany for a full quarter, and whether the Stripe and Advent consortium returns with an improved offer.

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