Retail media networks are gaining significant traction, attracting interest from financial institutions like Chase and Revolut. PayPal, which launched its advertising service in October 2024, is now introducing a new tool called Transaction Graph to enhance targeting for onsite and offsite advertisers.
Transaction Graph segments audiences based on purchase data collected across PayPal’s platforms, including Honey, PayPal, and Venmo. The tool utilizes data from 30 million merchants and 400 million global consumers, covering roughly 25% of global commerce.
Mark Grether, senior vice president of PayPal Ads, told Digiday that the company’s insight into consumer behavior exceeds that of individual retailers. “We have a much better understanding of what consumers buy, when, and where,” he said, emphasizing PayPal’s ability to answer advertisers’ questions more comprehensively.
Operating in 200 markets, PayPal highlights its diverse user base, such as the “young, urban, social” demographic active on Venmo. After launching in the U.S., PayPal Ads expanded to the U.K. and Germany earlier this year.
By aggregating transaction data from multiple merchants, PayPal can analyze market share and help brands identify opportunities to grow their sales across various platforms. “We can help brands with incrementality not only from single merchants but across all merchants,” Grether added.
Transaction Graph has been in beta for about eight months and has been tested by advertisers including Target, Best Buy, and Verizon. While PayPal has not shared specific campaign results, it is collaborating with measurement partners such as Lucid and InMarket.
Grether described transactions as “the new cookie,” highlighting enhanced confidence, security, and trust in PayPal’s advertising approach.
According to eMarketer, retail media is projected to capture over $1 of every $5 spent on digital media by 2029. More announcements from retailers and financial institutions regarding media networks are expected in the coming weeks.
At the Cannes Lions International Festival of Creativity this year, events such as Nectar360’s retail media summit and Albertsons Media Collective’s pop-up grocery store will emphasize innovation in retail media. Tim Ringel, CEO of Meet the People, noted, “The hype cycle is over and the reality cycle is kicking in,” underscoring the demand for effective retail and financial media use cases and creativity.