PayPal launches Ads Manager for small businesses

PayPal has introduced PayPal Ads Manager, a platform that enables small businesses using PayPal to generate revenue by running ads on their own websites and apps. The service allows merchants to act as retail media networks, opening access to a growing and profitable segment of digital advertising.

Retail media networks have become a significant source of income for large enterprises, generating billions in high-margin revenue. PayPal aims to extend these opportunities to smaller businesses through its global network of merchants across more than 200 markets.

Empowering small businesses to join retail media

Mark Grether, SVP and General Manager, PayPal Ads: "Small businesses are the backbone of our economy, but they've been locked out of the retail media revolution that's transforming how major retailers generate revenue. PayPal Ads Manager changes that equation entirely. We're enabling small businesses to participate in the same high-margin advertising model that's powering growth at some of the largest companies in the world, while simultaneously creating thousands of new, high-quality advertising placements for brands."

The platform requires no upfront cost or minimum commitment. Once a merchant opts in and integrates a software development kit (SDK), they can set their advertising preferences and begin earning revenue from store traffic. PayPal automatically serves relevant ads, while merchants can monitor performance through their PayPal Merchant Portal.

Streamlined ad management within PayPal

Through PayPal Ads Manager, small businesses can:

Monetize their online store traffic and reinvest earnings into marketing, inventory, or staffing.

Create valuable ad inventory, giving brands access to high-intent shoppers.

Manage advertising activity within the same environment they use for payments.

An example provided by PayPal describes a small coffee roaster integrating the SDK and quickly earning from ad placements by non-competing brands, with profits automatically added to their PayPal account.

Expanding access to data-driven advertising

PayPal will leverage its 25 years of payment data, transaction graph, and closed-loop attribution to help advertisers target consumers based on purchase behavior rather than browsing history. Small businesses will also be able to run their own ad campaigns using PayPal’s transaction insights and AI-powered creative tools, reaching customers across PayPal properties and social media.

The service will launch in early 2026, starting in the United States, followed by the United Kingdom and Germany.

www.paypal.com

Follow Marketing Report on LinkedIn