PayPal is releasing a new advertising platform that uses customer transaction data to analyze their spending habits.
In a press statement published on Tuesday, May 28, the project aims to help customers find things they are interested in and for merchants to sell goods and services more efficiently.
New Ad Platform to Contain User Shopping Data From PayPal and Venmo
The Wall Street Journal reports that the company's advertising team would access customers' spending history from PayPal and its affiliated app, Venmo.
Mark Grether, who was formerly the vice president and general manager of Uber Advertising, now leads PayPal's advertising division.
According to him, merchants may benefit from knowing who purchases what and where, thanks to the data from PayPal's new advertising platform.
PayPal would automatically gather data from users, but they would also be allowed not to allow data collection.
The Verge said it asked PayPal about the type of data that will be gathered, and spokesperson Taylor Watson pointed out that the project is still in its early stages and that the business does not yet have definitive answers. However, Watson added that PayPal would work with the advertising unit to provide clear and easy-to-use privacy settings.
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PayPal's Advanced Offers Program to Be Integrated Into the Ad Platform
PayPal's Advanced Offers program, which was unveiled in January, would be integrated into the platform, according to Independent UK. Using artificial intelligence (AI) and data collected by PayPal, the service allows businesses to provide customers with more relevant and targeted promotions and discounts.
Advertisers only pay for advanced offers when customers buy something. Online marketplaces like Zazzle and eBay have reportedly tested this.
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