Retail media networks are gaining traction, attracting financial institutions like Chase and Revolut. PayPal, active in advertising since October 2024, has introduced Transaction Graph, a new tool that segments audiences based on purchase data across its platforms Honey, PayPal, and Venmo.
Transaction Graph taps into data from 30 million merchants and 400 million consumers worldwide, representing roughly 25% of global commerce. This breadth allows for deeper insights into consumer behavior, including what they buy, when, and where.
Mark Grether, PayPal Ads’ senior vice president, said the company understands varied user profiles, such as “young, urban, social” Venmo users. PayPal Ads launched in the U.S. and recently expanded to the U.K. and Germany.
By analyzing transactions across all merchants, PayPal can estimate market share and help brands identify opportunities for growth. The Transaction Graph has been in beta for eight months and has been utilized by advertisers like Target, Best Buy, and Verizon, although no specific campaign results have been disclosed. PayPal collaborates with several full-funnel measurement providers, including Lucid and InMarket.
“Transactions are the new cookie,” Grether said, emphasizing the enhanced confidence and trust this data provides in advertising.
According to eMarketer forecasts, retail media will account for more than 20% of digital media spending by 2029, signaling continued growth. This momentum is reflected in upcoming events like the retail media summit hosted by Nectar360 at Cannes Lions and Albertsons Media Collective’s pop-up grocery store at MediaLink beach.
Tim Ringel, Global CEO of Meet the People, noted the transition from hype to tangible results in the retail and financial media network space, highlighting a shift towards practical use cases and creative executions.