Financial institutions are increasingly entering the retail media space, traditionally dominated by retail giants, with PayPal among them. Since launching its advertising services in October 2024, PayPal has introduced Transaction Graph, a tool that segments audiences based on purchasing data from its platforms including Honey, PayPal, and Venmo.
Transaction Graph aggregates data from 30 million merchants and 400 million global consumers, representing roughly 25% of global commerce. This broad data access gives PayPal detailed insights into consumer purchase behaviors, such as what, when, and where they buy, surpassing the capabilities of individual retailers.
Mark Grether, senior vice president of PayPal Ads, emphasized the company’s ability to analyze transactions across all merchants to help brands identify market share opportunities and measure incremental growth beyond single merchants.
Operating in 200 markets, PayPal highlights the diversity of its user base, citing the example of young, urban Venmo users. Since its U.S. launch, PayPal Ads has expanded into the U.K. and Germany. The Transaction Graph tool has been in beta for eight months and is already employed by advertisers such as Target, Best Buy, and Verizon. PayPal is collaborating with multiple measurement providers including Lucid and InMarket to evaluate campaign effectiveness.
Grether referred to transaction data as “the new cookie,” offering enhanced confidence, security, and trust in digital advertising. According to eMarketer, retail media is projected to capture over 20% of all digital media spending by 2029, signaling strong industry growth.
At the upcoming Cannes Lions International Festival of Creativity, retail and financial media networks will showcase innovative use cases and creative campaigns. Events like Nectar360’s retail media summit and Albertsons Media Collective’s pop-up grocery store highlight the sector’s momentum. Tim Ringel, Global CEO of Meet the People, noted that the retail media space is moving beyond hype into practical applications.