Retail media networks are experiencing rapid growth, attracting significant interest from financial institutions such as Chase and Revolut. PayPal, which introduced its advertising platform in October 2024, has launched a new tool called Transaction Graph. This tool segments audiences based on purchase data collected across PayPal’s properties, including Honey, PayPal itself, and Venmo.
Transaction Graph draws on data from 30 million merchants and 400 million consumers globally, representing about 25% of worldwide commerce. According to Mark Grether, PayPal Ads’ senior vice president, this extensive data set offers superior insights into consumer purchasing behavior compared to single retailers.
Operating in 200 markets, PayPal highlights its ability to profile diverse user groups, citing for example the “young, urban, social” Venmo users. After launching PayPal Ads in the U.S., the platform expanded to the U.K. and Germany earlier this year.
By analyzing transactions across multiple merchants, PayPal claims it can help brands understand market share and identify opportunities to increase sales incrementally across various retailers. The Transaction Graph has been in beta for eight months, with advertisers including Target, Best Buy, and Verizon utilizing the tool. PayPal is collaborating with measurement firms like Lucid and InMarket but has not disclosed detailed campaign outcomes.
Grether summarized the advantage of transactional data by stating, “Transactions are the new cookie,” emphasizing enhanced confidence, security, and trust as PayPal grows its advertising business.
Retail media is projected by eMarketer to capture more than 20% of digital media spending by 2029. Industry events like the Cannes Lions International Festival of Creativity are expected to showcase new innovations and use cases in retail and financial media networks. Tim Ringel, CEO of Meet the People, notes that the sector is moving beyond hype toward practical applications.