PayPal launches ads ID service for digital advertising market

PayPal Holdings Inc. (NASDAQ: PYPL) announced the launch of PayPal Ads ID, an advertising identifier service based on verified user accounts from PayPal and Venmo platforms.

The service provides deterministic identity signals derived from authenticated PayPal and Venmo accounts, which the company states are used for actual transactions. PayPal Ads ID aggregates consented signals from browsing behavior across the PayPal ecosystem, maintaining consistency across browsers, devices, and sessions.

"Identity is the foundation everything else in advertising is built on. For too long, that foundation has been guesswork," said Mark Grether, senior vice president and general manager of PayPal Ads. "When your identity layer is built on verified commerce relationships, you're no longer estimating who someone is, you're reaching them with confidence."

The identifier is built on data from more than 25 billion transactions across 400 million PayPal and Venmo accounts. PayPal states the service aims to improve match rates and audience reach consistency for advertisers while providing closed-loop attribution capabilities.

The company designed the service with privacy protections, using individual encryption, aggregation, and deidentification. PayPal does not share merchant names or transaction details with advertisers or ad technology partners. Users can control their participation in the service.

Initial technology partners testing the solution include Magnite, PubMatic, Rokt, and Taboola. These partners will integrate PayPal Ads ID across commerce, open web, connected television, and native advertising environments.

According to a 2025 State of the Industry report cited by PayPal, only 21% of brands, agencies, and publishers express confidence in accurately identifying and reaching target audiences across digital channels.

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