Is PYPL (PayPal Holdings, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PYPL is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. PayPal Holdings, Inc.'s core business activity was found to be non-compliant.

PayPal Holdings, Inc. is a global leader in digital payments, operating a vast platform that includes well-known brands like Ven mo, Xoom, Braintree, and Honey. The company enables merchants and consumers to send money and accept payments across 200 markets, effectively acting as the digital wallet for millions of users worldwide. Its services range from simple peer -to-peer transfers to complex merchant processing and credit offerings like 'Buy Now, Pay Later' schemes. For Muslim investors using HalalStocks.co.uk, PayPal presents a significant challenge because it is currently classified as Not Halal (Haram). Although the company successfully passes the quantitative financial screens—keeping its debt and interest-bearing securities within acceptable limits —it fails the primary Business Activity screen. This failure is due to its classification within the 'Financial - Credit Services' industry , where revenue is often derived from un-Islamic financial practices, including credit facilitation and integration with interest-based banking systems . Financially, PayPal appears robust with a debt-to-market cap of 22. 6% and cash levels at 23.5%, both sitting comfortably below the 33% threshold. However, the 1.55% interest income figure, while low, does not negate the fact that the core business model is problematic from a shariah perspective. Investors must look beyond the numbers; even if the financial ratios look healthy, the underlying service of providing credit and facilitating non-compliant financial transactions renders the stock impermissible for many conservative portfolios. Scholars often debate fintech companies, distinguishing between pure technology providers and financial intermediaries. In PayPal's case, its deep involvement in credit products ( like PayPal Credit) and lending services pushes it closer to a conventional financial institution rather than a neutral tech platform. Unless PayPal separates its credit operations significantly or purifies its revenue streams, it remains a restricted stock for strict shariah-compliant investors. PayPal Holdings, Inc. operates in the Financial Services sector under the Financial - Credit Services industry and is headquartered in San Jose, CA, US. The company is led by CEO Jamie S. Miller and employs approximately 24,400 people.

PYPL was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. PYPL passed 3 of these 4 screens.

PYPL was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.