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LOANS RECEIVABLE, NET | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET The Company classifies loans receivable as “Merchant,” “Consumer,” “Credit cards” and “Asset-backed.” As of September 30, 2025 and December 31, 2024, the components of current and non-current Loans receivable, net were as follows:
| September 30, 2025
| Loans receivable |  | Allowance for doubtful accounts |  | Loans receivable, net
| (In millions)
Merchant | $ | 1,877 |  |  | $ | (668) |  |  | $ | 1,209 |
Consumer | 4,088 |  |  | (1,114) |  |  | 2,974 |
Credit cards | 4,803 |  |  | (1,032) |  |  | 3,771 |
Asset-backed | 254 |  |  | (16) |  |  | 238 |
Total | $ | 11,022 |  |  | $ | (2,830) |  |  | $ | 8,192 |
| December 31, 2024
| Loans receivable |  | Allowance for doubtful accounts |  | Loans receivable, net
| (In millions)
Merchant | $ | 1,205 |  |  | $ | (417) |  |  | $ | 788 |
Consumer | 2,591 |  |  | (696) |  |  | 1,895 |
Credit cards | 2,639 |  |  | (557) |  |  | 2,082 |
Asset-backed | 138 |  |  | (8) |  |  | 130 |
Total | $ | 6,573 |  |  | $ | (1,678) |  |  | $ | 4,895 |
The allowance for doubtful accounts with respect to the Company’s loans receivable amounts to $2,859 million and $1,708 million as of September 30, 2025 and December 31, 2024, respectively, which includes $29 million and $30 million related to unused agreed loan commitment on credit cards portfolio presented in Other liabilities of the interim condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025 and December 31, 2024, the Company is exposed to off-balance sheet unused agreed loan commitment on credit cards portfolio which expose the Company to credit risks for $6,595 million and $2,872 million, respectively. For the nine and three-month periods ended September 30, 2025, the Company recognized in Provision for doubtful accounts a gain of $5 million and a loss of $7 million as expected credit losses, and a loss of $9 million and $5 million for the nine and three-month periods ended September 30, 2024, respectively. From time to time, the Company sells loans receivable related to its lending solution. In this regard, during 2024, the Company signed a contract with a third party to sell an amount up to $100 million of its loans receivable, as part of its funding strategy. These loans were originated by its Mexican subsidiary and provided to local users. This transaction was accounted for as a true sale and the Company has a continuing involvement related to a servicing fee charged to the purchaser for collection services and regarding a beneficial interest retained by the Company over the transferred assets. Such involvements did not preclude the fact that this operation qualified as a true sale because the purchaser had full control over the transferred assets. During the nine-month period ended September 30, 2025 the Company sold $52 million of loans receivable and recorded a gain of $1 million, related to the aforementioned contract. As of December 31, 2024, the Company sold $44 million of loans receivable and no gains or losses were recorded in the nine and three-month periods ended September 30, 2024. The following tables summarize the allowance for doubtful accounts activity during the nine-month periods ended September 30, 2025 and 2024:
| September 30, 2025
| Merchant |  | Consumer |  | Credit cards |  | Asset-backed |  | Total
| (In millions)
Balance at beginning of year | $ | 417 |  |  | $ | 696 |  |  | $ | 557 |  |  | $ | 8 |  |  | $ | 1,678 |
Net charged to Net Income | 502 |  |  | 847 |  |  | 733 |  |  | 10 |  |  | 2,092 |
Currency translation adjustments | 64 |  |  | 88 |  |  | 111 |  |  | 2 |  |  | 265 |
Write-offs (1) | (315) |  |  | (517) |  |  | (369) |  |  | (4) |  |  | (1,205) |
Balance at end of period | $ | 668 |  |  | $ | 1,114 |  |  | $ | 1,032 |  |  | $ | 16 |  |  | $ | 2,830 |
| September 30, 2024
| Merchant |  | Consumer |  | Credit cards |  | Asset-backed |  | Total
| (In millions)
Balance at beginning of year | $ | 256 |  |  | $ | 591 |  |  | $ | 236 |  |  | $ | 1 |  |  | $ | 1,084 |
Net charged to Net Income | 328 |  |  | 569 |  |  | 406 |  |  | 6 |  |  | 1,309 |
Currency translation adjustments | (20) |  |  | (37) |  |  | (39) |  |  | — |  |  | (96) |
Write-offs (1) | (171) |  |  | (398) |  |  | (116) |  |  | — |  |  | (685) |
Balance at end of period | $ | 393 |  |  | $ | 725 |  |  | $ | 487 |  |  | $ | 7 |  |  | $ | 1,612 |
(1) The Company writes off loans when customer balance becomes 360 days past due. The Company closely monitors credit quality for all loans receivable on a recurring basis to assess and manage its exposure to credit risk. To assess merchants and consumers seeking a loan under the lending solution, the Company uses, among other indicators, risk models internally developed, as a credit quality indicator to help predict the merchant’s and consumer’s ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant’s and consumer’s ability to repay the credit, including external and internal indicators. Internal indicators consider user behavior related to credit/payment history, and with lower weight in the risk models, the Company uses number of transactions in the Company’s ecosystem and merchant’s annual sales volume, among other indicators. In addition, the Company considers external bureau information to enhance the model and the decision making process. The amortized cost of the loans receivable classified by the Company’s credit quality internal indicator was as follows:
| September 30, 2025 |  | December 31, 2024
| (In millions)
1-14 days past due | $ | 319 |  |  | $ | 125 |
15-30 days past due | 217 |  |  | 146 |
31-60 days past due | 281 |  |  | 175 |
61-90 days past due | 254 |  |  | 167 |
91-120 days past due | 259 |  |  | 178 |
121-150 days past due | 227 |  |  | 155 |
151-180 days past due | 236 |  |  | 138 |
181-210 days past due | 222 |  |  | 129 |
211-240 days past due | 238 |  |  | 118 |
241-270 days past due | 211 |  |  | 121 |
271-300 days past due | 183 |  |  | 109 |
301-330 days past due | 191 |  |  | 112 |
331-360 days past due | 168 |  |  | 90 |
Total past due | 3,006 |  |  | 1,763 |
To become due | 8,016 |  |  | 4,810 |
Total | $ | 11,022 |  |  | $ | 6,573 |
As of September 30, 2025 and December 31, 2024, renegotiations represented 1.7% and 1.4% of the loans receivable portfolio, respectively.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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