Retail media networks are experiencing rapid growth, attracting interest from financial institutions like Chase and Revolut. PayPal, which launched its advertising services in October 2024, has introduced a new tool called Transaction Graph. This tool segments audiences based on purchase data from PayPal’s platforms, including Honey, PayPal, and Venmo.
Transaction Graph utilizes data from 30 million merchants and 400 million global consumers, covering roughly 25% of worldwide commerce. Mark Grether, senior vice president of PayPal Ads, told Digiday that this data provides a deeper understanding of consumer behavior compared to competitors, detailing what, when, and where consumers buy.
PayPal operates in 200 markets and highlights its insight into diverse user groups, such as the “young, urban, social” demographic active on Venmo. Since its U.S. launch, PayPal Ads has expanded to the U.K. and Germany.
By analyzing transactions across all merchants, PayPal can estimate market share and advise brands on how to grow their presence. Grether noted that the platform supports measuring advertising impact both for individual merchants and across the broader merchant network.
Transaction Graph has been in beta for eight months and is already used by advertisers including Target, Best Buy, and Verizon. While specific campaign results have not been disclosed, PayPal collaborates with measurement firms like Lucid and InMarket to validate effectiveness.
Grether emphasized, “Transactions are the new cookie,” highlighting enhanced confidence, security, and trust in their advertising approach.
eMarketer forecasts that by 2029, retail media will account for more than 20% of digital media spending. Industry events such as the Cannes Lions International Festival of Creativity are showcasing retail media innovations, with companies like Nectar360 and Albertsons Media Collective hosting dedicated activities.
Tim Ringel, Global CEO of Meet the People, observes that the initial hype around retail and financial media networks is fading, making way for practical applications and creative use cases.