PayPal Unveils $10 Million Sweepstakes Amid Stock Plunge

San Jose, Calif. — PayPal Holdings launched a new advertising campaign on Thursday that features a sweepstakes offering up to $10 million in total prize money, even as its stock declined significantly.

The company announced that for 100 days, 1,000 lucky winners will have their purchases of up to $100 covered simply by using PayPal Checkout. Customers can win this prize up to five times, making it PayPal’s largest sweepstakes to date. “This initiative is designed to encourage consumers to use PayPal’s checkout option and payment plans,” the company stated in a news release.

Despite the promotional efforts, PayPal’s stock fell more than 6% to $59.87 on Thursday. This decline is a part of a broader trend in 2025, with PayPal shares being down approximately 29% year-to-date. The downturn has coincided with a troubled environment for many fintech stocks, which have suffered as concerns about a potential U.S. recession loom.

“We understand the market conditions and are committed to enhancing our user experience through innovative offerings,” said a PayPal spokesperson during the announcement. “This campaign is one of many steps we are taking to drive engagement.”

Alongside PayPal, other financial technology firms have seen stock declines, including Affirm Holdings, whose shares dropped over 10% to $39.77 on Thursday, now down 33% in 2025. The competition in the “buy now, pay later” (BNPL) market is fierce, with options allowing consumers to make purchases in installments with lower interest rates compared to traditional credit cards.

At an investor day in February, PayPal executives disclosed plans to double the size of its BNPL business, aiming for nearly $60 billion in transaction volume within three years. However, as PayPal faces concerns over losing market share to competitors like Apple, its immediate performance remains under scrutiny as it approaches its first-quarter earnings report on April 29.

In a related context, Publishers Clearing House (PCH), well-known for its sweepstakes, filed for Chapter 11 bankruptcy protection earlier this week. This could hint at changing consumer behaviors and the shift of marketing strategies in similar sectors. As PCH transitions from the traditional mail-based model to a more digital advertising-centric approach, they plan to maintain their prize offerings as they restructure.

PCH has noted that its operations have faced rising operational costs and competition, affecting its profitability in recent years. CEO Andy Goldberg expressed optimism about the transition. “This shift will help us establish a strong foundation for our future,” he stated.

As both PayPal and PCH navigate their respective challenges, they illustrate the shifting landscape of consumer finance and marketing in an evolving economic environment dominated by digital engagement.