PayPal launches 'PayPal Ads' to sell digital ads to U.S. advertisers

PayPal has launched its new advertising division, PayPal Ads, in the U.S. It will sell digital ads using data from purchases made on its platforms, including PayPal, Venmo, and Honey.

The ads business will give advertisers access to data from 400 million PayPal users, 90 million Venmo users, and millions of Honey users. This data comes from 225 billion transactions across various merchants. Users can opt out of having their data included in the ad targeting.

The company has been testing a product, ‘Advanced Offers,’ which lets advertisers target promotions and discounts in the PayPal app. With the launch of PayPal Ads, advertisers can now buy display ads across PayPal's platforms. 

Mark Grether, who previously worked at Uber and Amazon, now leads PayPal Ads. PayPal joins JPMorgan Chase and American Express in digital ads. Retailers like Walmart and Best Buy have long been growing their ad businesses.

PayPal Ads appeal 

PayPal claims its appeal is its wide view of consumer behavior across multiple retailers. Grether says PayPal’s ad network captures purchase data from thousands of merchants, not just one store.

What’s Next for PayPal Ads?

Grether also said that PayPal Ads will let advertisers buy ads across 30 million PayPal merchants. It plans to roll out a self-serve ad tool next year.

By next year, PayPal will expand its ads to include video ads and placements on retailers' websites.