PayPal’s New Strategic Shift

PayPal Holdings introduced PayPal Ads Manager, a platform designed for tens of millions of small businesses to create advertising revenue without upfront costs. The service begins in the US and will reach the UK and Germany in 2026. This development lets merchants use PayPal data and relationships to enter the retail media space and generate high-margin income. Analysts believe this step could affect how investors view PayPal in terms of growth potential and earnings. Some see the move as part of PayPal expanding into broader digital commerce beyond payments. Others caution that macroeconomic shifts and competition may challenge PayPal as it targets revenue increases in uncertain times. Another update involves AI-driven features added to PayPal Honey, which complement Ads Manager and help PayPal strengthen merchant services and improve margins. Forecasts suggest PayPal could reach $38.1 billion in revenue and $5.4 billion in earnings by 2028 with modest annual growth. Community estimates vary widely, showing both optimism and caution around PayPal and its shift into retail media. Investors are encouraged to shape their own outlook on PayPal and evaluate how new tools might change its trajectory.