Is PayPal Holdings, Inc. PYPL stock halal to invest in?

No, as of August 2026, PayPal Holdings, Inc. stock (PYPL) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. PayPal Holdings, Inc. currently does not meet the threshold for the non-permissible income screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of PayPal Holdings, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is PayPal Holdings, Inc. PYPL reviewed for Shariah compliance?

Tabadulat reviews PayPal Holdings, Inc. PYPL for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for PayPal Holdings, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, PayPal Holdings, Inc. stock (PYPL) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. PayPal Holdings, Inc.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, PayPal Holdings, Inc. stock (PYPL) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). PayPal Holdings, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, PayPal Holdings, Inc. stock (PYPL) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. PayPal Holdings, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for PayPal Holdings, Inc. PYPL stock?

PayPal Holdings, Inc. (PYPL) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If PayPal Holdings, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Preference Share screen?

Yes, as of August 2026, PayPal Holdings, Inc. stock (PYPL) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. PayPal Holdings, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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PayPal Holdings, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

PYPL

About

PayPal Holdings, Inc.

PYPL

PayPal Holdings Inc. is a prominent player in the digital payments industry, providing an essential service that facilitates online and mobile monetary transactions globally. As a leading payment solutions provider, PayPal enables individuals and businesses to send and receive funds with ease and security without sharing financial information with third parties. Its platform supports a variety of payment options, including credit cards, bank accounts, and stored digital balances. PayPal has significantly impacted the e-commerce sector, empowering businesses of all sizes to reach a global customer base. Additionally, it offers tailored financial solutions for merchants, including invoicing and working capital services. Operating in over 200 markets worldwide, PayPal plays a crucial role in the financial ecosystem by promoting digital payment adoption and financial inclusion. With its continuous technological advancements and partnerships with leading retail and tech companies, PayPal remains at the forefront of transforming how people conduct financial transactions in the digital age.

Sector:

Financial Services

Industry:

Credit Services

Employees:

24400

Website:

https://www.paypal.com

PYPL

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PayPal Holdings, Inc.

About

PayPal Holdings, Inc.

PYPL

Frequently asked questions

Is PayPal Holdings, Inc. PYPL stock halal to invest in?

How often is PayPal Holdings, Inc. PYPL reviewed for Shariah compliance?

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Non Permissible Income criteria?

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Interest Bearing Investments criteria?

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for PayPal Holdings, Inc. PYPL stock?

Does PayPal Holdings, Inc. PYPL pass the AAOIFI Preference Share screen?

Can I buy PayPal (PYPL) stock on Tabadulat?

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