David Marcus, PayPal’s president from 2011 to 2014, issued a scathing critique of his former employer on social media platform X, warning that the company has ‘‘lost its mojo, its product edge, and its ability to compete.’’ Marcus pointed to repeated leadership missteps, including overemphasis on short-term financial optimization at the expense of innovation. He singled out the acquisitions of Honey and Xoom as distractions that failed to integrate with core payments infrastructure, and argued that PayPal’s reliance on unbranded checkout solutions has ceded volume to rivals such as Apple Pay, Visa and standalone buy-now-pay-later providers.

In its latest earnings release, PayPal reported fourth-quarter revenue of $8.68 billion, a 4 percent year-over-year increase, falling short of consensus estimates. Adjusted earnings per share came in at $1.23 versus street expectations near $1.29, marking the company’s second consecutive quarter of profit misses. Total payment volume rose 9 percent to $475 billion, or 6 percent on a currency-neutral basis, but growth in branded checkout slowed dramatically to just 1 percent, down from 5–6 percent in prior quarters. This deceleration prompted analysts to cut annual profit guidance and withdraw multiyear targets.

PayPal announced that Alex Chriss will depart as CEO effective March 1, with interim leadership by CFO Jamie Miller until Enrique Lores, formerly CEO of Hewlett Packard Enterprise, takes the helm. The board cited ‘‘execution that has not been where it needs to be’’ in its rationale for change. Lores inherits a mandate to accelerate product rollout and streamline operations; his track record includes leading large-scale transformations and driving digital services growth at HPE. Management indicated that 2026 will focus on disciplined investment in core checkout, loyalty programs and merchant integrations rather than new market expansions.

PayPal faces intensifying competition across payments and lending. Apple Pay and Google Pay continue to secure e-commerce share, while specialized buy-now-pay-later firms are expanding partnerships with major retailers. To counter these headwinds, PayPal plans to accelerate its biometric and passkey authentication rollout, aiming to have half of active users ‘‘checkout ready’’ by year-end. It will also concentrate resources on its top 25 percent of merchants, offering bundled upgrades in checkout experience, presentment and loyalty incentives. Meanwhile, Venmo’s revenue grew by nearly 20 percent last year to $1.7 billion, and PayPal’s Payment Service Provider segment delivered seven straight quarters of profitable growth, highlighting areas of strength that management intends to leverage for broader platform revitalization.