What is PayPal Holdings, Inc.'s Shariah compliance score?

PayPal Holdings, Inc. (PYPL) has a Shariah compliance score of 45/100 (Grade: C, Marginal) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does PayPal Holdings, Inc. pass AAOIFI screening?

PayPal Holdings, Inc. (PYPL) partially passes with caution AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (PYPL: 29.0%), (3) interest-bearing deposits below 30% (PYPL: 26.5%), and (4) prohibited income below 5% (PYPL: 1.7%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for PayPal Holdings, Inc. stock?

PayPal Holdings, Inc. (PYPL) has a non-permissible income ratio of 1.66%. Muslim investors should purify this percentage of any dividends received and capital gains realized from PYPL shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen PayPal Holdings, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for PayPal Holdings, Inc. (PYPL) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about PYPL's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is PayPal Holdings, Inc. (PYPL) halal? Doubtful. Based on AAOIFI screening, PayPal Holdings, Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 45/100 (Grade: C).

PYPL: Is PayPal Holdings, Inc. Halal?

Doubtful

PayPal Holdings, Inc.

NASDAQFinancial ServicesUS

$44.53

-1.46%

AvoidBorderlineClean

Purify ~1.7% of income

About PayPal Holdings, Inc.

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.

Sector: Financial Services · Industry: Financial - Credit Services

Read Full Analysis

Is PayPal (PYPL) Stock Halal? Shariah Compliance Analysis

Why This Stock Is Doubtful

Debt is 29.0% of market cap, only 1.0 points below the 30% AAOIFI limit
Interest-bearing deposits are 26.5% of market cap, only 3.5 points below the 30% limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026

Marginal

Multiple ratios near AAOIFI thresholds

45Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap29.0% / 30.0%

Compliance History

Doubtfulnow
since Jun 2026
Not Halal
until the change above
Doubtful
until the change above

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your PYPL Dividends

1.7% non-compliant income

PYPL has 1.7% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

39.3B

Price

$44.53

Sector

Financial Services

Industry

Financial - Credit Services

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Frequently Asked Questions

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

PayPal Holdings, Inc. (PYPL) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.

Why did PayPal Holdings, Inc. get a C compliance rating?

PayPal Holdings, Inc. (PYPL) received a grade of C (Marginal) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 29.0% (limit 30%); interest-bearing deposits of 26.5% (limit 30%); prohibited income of 1.66% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change PayPal Holdings, Inc.'s Shariah verdict?

PayPal Holdings, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is PayPal Holdings, Inc. re-screened for Shariah compliance?

PayPal Holdings, Inc. (PYPL) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.