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PayPal is the most popular mobile payment app that US adults typically use, with over twice as many users as the next most popular choice, Venmo, according to November 2024 data from YouGov.

Financial institutions (FIs) will burst through the financial media network (FMN) door first cracked open in 2024. Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They鈥檙e the most high-profile FIs to do so yet, signaling that FMNs could be a meaningful new revenue stream for the financial services industry.

Major payment players like PayPal and Visa that invested in them are likely celebrating this regulatory movement

Western Union has become the latest financial company to launch a media network, joining the likes of Chase and PayPal. 鈥淭he biggest advantage [financial media networks] have is just breadth. So, unlike a retail media network, they capture the entire spending history that a customer has,鈥� said our analyst Maria Elm on an episode of our Behind the Numbers podcast.

PayPal Ads offers unique ad targeting via transaction data: Access to PayPal鈥檚 400 million users aims to transform digital advertising for small and medium-sized businesses.

B2B payments are fast becoming the biggest opportunity for stablecoins to gain traction鈥攏ow PayPal has to convince everyone else.

The integration is a win for PayPal after Amazon stopped accepting Venmo on its ecommerce site

American Express is expanding Amex Offers, which allows advertisers to serve card holders tailored deals. The expansion comes on the heels of Chase and PayPal launching financial media networks (FMNs), a trend we expect will continue.

PayPal is rethinking its growth strategy amidst market turmoil and slower-than-anticipated growth. All eyes are on the original fintech and payments powerhouse as it moves in a new direction; its strength in the market affects every part of the payments value chain.

PayPal also secured partnerships with large brands to drive Fastlane volume. It won tie-ups with NBCUniversal, Roku, and StockX during the quarter. Fastlane is growing PayPal鈥檚 user base: 75% of Fastlane consumers are new or dormant PayPal users. PayPal rolled out the PayPal Everywhere campaign in late Q3 to boost in-store volume.

To that end, it also upgraded the PayPal Debit Card and brought PPCP to new markets. Our take: This partnership with Bold Commerce helps PayPal make progress towards these goals. The Canada-based checkout platform boasts a customer base of 90,000 brands across 170 countries.

The bigger picture: PayPal launched PYUSD in August 2023. Customers can use the stablecoin for P2P payments between PayPal, Venmo, and third-party wallets and for fee-free remittances via Xoom. While PayPal has not released any of its own data on the stablecoin, so far, adoption seems to be minimal. PYUSD鈥檚 market cap is $503.23 million, per CoinMarketCap, making it the seventh-largest stablecoin.