PayPal is expanding its digital advertising footprint with a new ad format called Storefront Ads. The format lets users shop directly from display ads integrated into publisher content without leaving the webpage they are on. With Storefront Ads, users can view the product, check the price, see shipping details, and complete the purchase directly on the site without clicking away.

How Storefront Ads work

Storefront Ads will enable brands’ ads to be displayed on publishers’ websites, and these ads will function as mini storefronts right on the page. Instead of redirecting users to a brand’s website, a “Buy Now” button initiates checkout using PayPal or Venmo. Once the transaction is completed, shoppers are returned to the exact spot they left off.

For instance, a user is reading a product review on a Vox Media site. Right next to the content is a Storefront Ad showing a product. Instead of clicking out to read more on the brand site, the user can check the price, get shipping info, and buy the product instantly. All of this happens within the ad unit itself, with payments handled by PayPal or Venmo.

This marks a shift from the standard display ad flow, where users often switch between tabs or apps before making a decision. The new format leverages PayPal’s existing payment infrastructure and user data. The company says Storefront Ads are powered by PayPal and Venmo's robust payment rails.

PayPal says the first wave of Storefront Ads will go live with U.S. publishers this summer. Early partners include Business Insider, Vox Media, Horizon Media, and Avocado Green Mattress. The format will initially appear as IAB-standard units, but there are plans to expand into brand carousels and sponsored listings as part of the roadmap.

Responding to AI-driven shopping behavior

According to PayPal, this launch is partly a response to the rise of agentic commerce — a term used to describe AI agents that shop on behalf of consumers. These tools, such as AI shopping bots, could intercept users before they make a decision. Storefront Ads integrate the purchase option directly into the content, giving merchants a chance to reach users before they are redirected elsewhere.

This launch builds on PayPal Ads, introduced last year, which gives brands access to its network of 400 million PayPal users and 90 million Venmo users. The company also recently partnered with Perplexity, allowing users in the U.S. to shop directly inside the Perplexity chatbot.

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