PayPal reports shrinking basket sizes as consumers turn cautious

PayPal said its global transaction volumes grew slower than expected in Q3 2025 as average basket sizes declined, particularly across U.S. and European markets. CFO Jamie Miller cited weaker discretionary spending in apparel, travel and luxury goods, even as essential categories like utilities and groceries held steady. The company slightly lowered Q4 guidance and emphasised operational efficiency to maintain margins. Analysts say the data points to tightening consumer budgets ahead of the holiday season, despite overall employment stability.