PayPal stock surges after unveiling Ads Manager for small businesses

Published 07/10/2025, 14:22
© Reuters.

Investing.com -- PayPal Holdings (NASDAQ:PYPL) stock rose 5% Tuesday after the company unveiled PayPal Ads Manager, a new platform that will allow small businesses to monetize their online traffic through retail media advertising.

The new service, set to launch in early 2026 in the United States followed by the UK and Germany, aims to democratize retail media networks by enabling small businesses to generate revenue from their existing store traffic. The platform will allow merchants to integrate an SDK within minutes and begin displaying ads on their websites without requiring technical expertise or minimum commitments.

PayPal’s initiative targets the tens of millions of small businesses that use its payment services across more than 200 global markets. The company highlighted that small businesses represent 99.9% of all businesses in the U.S., positioning the new service to potentially create billions of new advertising impressions.

The Ads Manager will leverage PayPal’s transaction data and cross-merchant purchase insights to help advertisers reach consumers based on actual buying behavior rather than browsing history. Small businesses will be able to set preferences for which types of advertisers can appear on their sites and monitor performance through their existing PayPal Merchant Portal.

Despite Tuesday’s gains, PayPal stock has underperformed the broader market this year, falling 15% year-to-date

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