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

PayPal Holdings, Inc. (PYPL) has a Shariah compliance score of 57/100 (Grade: C+, Fair) 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) passes 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: 21.8%), (3) interest-bearing deposits below 30% (PYPL: 19.9%), 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).

PYPL: Is PayPal Holdings, Inc. Halal?

PayPal Holdings, Inc.

NASDAQFinancial ServicesUS

$44.53

-1.46%

Market Cap: 39.3B

Compliance Status

Halal

Screened on Jul 17, 2026 · AAOIFI Standard 21

C+

Fair

57Score

Is PayPal Holdings, Inc. (PYPL) halal? Halal. Based on AAOIFI screening, PayPal Holdings, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 57/100 (Grade: C+).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Within the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

21.8% of 30.0% limit

What this means for you

You can own PYPL

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purify 1.7% of your income from PYPL

That is about $1.70 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

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

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

Compliance History

Halalnow
since Jul 2026
Doubtful
until the change above
Not Halal
until the change above
Doubtful
until the change above

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

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

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

Based on AAOIFI Standard 21 screening, PayPal Holdings, Inc. (PYPL) is rated Halal with a compliance grade of C+ (Fair). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

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

PayPal Holdings, Inc. (PYPL) received a grade of C+ (Fair) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 21.8% (limit 30%); interest-bearing deposits of 19.9% (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: Jul 17, 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.