PayPal Holdings (NASDAQ:PYPL) stock gained 4.1% in late Tuesday morning trading after the fintech unveiled an ad network that’s intended to generate revenue for tens of millions of small businesses that use PayPal.
That announcement comes just a day after the payment tech company offered U.S. customers the ability to earn 5% cash-back on Buy Now, Pay Later purchases through the end of the year.
The PayPal Ads Manager provides a retail media network that enables businesses to sell advertising on small business websites and apps, earning money from their existing store traffic.
“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,” said SVP and General Manager of PayPal Ads Mark Grether.
Joining the network comes with no upfront cost or minimum commitment, the company said. PayPal (NASDAQ:PYPL) automatically places and serves the relevant ads based on a small business’s preference and other factors, eliminating the need for a small business owner to manually select ads that are published. For example, a small coffee roaster would set its preferences so that no other coffee shops are allowed to advertise in its store.