PayPal customers can expect to see targeted ads soon as the company prepares to launch an advertising network that analyzes personal buying habits.
PayPal Ads will utilize data from its flagship platform and adjacent service Venmo, gathered through monitoring millions of users' purchases and spending patterns.
The company plans to gather data from online transactions and purchases made using its credit card at brick-and-mortar stores, enlisting former VP and GM of Uber Advertising Mark Grether to spearhead the ambitious venture.
"If you’re someone who’s buying products on the web, we know who is buying the products where, and we can leverage the data," Grether said in a statement to The Wall Street Journal.
In line with PayPal’s broader strategy to attract advertisers, the company also unveiled its first ad product earlier this year.
Advanced Offers uses AI algorithms and company data to assist merchants in creating tailored recommendations for consumers based on their preferences.
PayPal Ads Values Data Privacy
While there are no specific details yet regarding how customer data will be collected, PayPal ensures that privacy will be a top priority.
Taylor Watson, a spokesperson for PayPal, told WSJ that data gathering will have transparent user controls and will be set to opt-out by default.
PayPal’s move into targeted ads follows a trend in the industry, with finance and tech giants like Facebook, JPMorgan Chase, and Visa also using transaction data for ad targeting.
Data-driven advertising is becoming increasingly important for brands.
Earlier this year, a study by Consumer Reports revealed that Facebook gathers information about its users from thousands of different companies, including Amazon, Home Depot, Macy’s, and Walmart.
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Editing by Katherine 'Makkie' Maclang
