Shopping and financial services: The match we didn’t know we needed
- The latest trend shaking up the industry is the increasing convergence of shopping and financial services.
- Joining the fray after Chase is PayPal, the newest entrant in the advertising market. PayPal may not attract the same criticism as Chase but it could face a different type of challenge [hint: data privacy] that requires its attention and adept handling.
The trend of intertwining retail more deeply with financial services
by SARA KHAIRI
While it’s often said that matches are made in heaven, some surprising combinations come to life right here on Earth. Just as pineapples on pizza spark debate, these unexpected pairings can evoke different reactions. The latest trend shaking up the industry is the increasing convergence of shopping and financial services.
The trend
BNPL solutions are a prime example of merging shopping with financial services, effectively integrating financial firms into the consumer’s purchase journey.
Another emerging trend is the move by banks and financial firms into the advertising sector to diversify their revenue streams. This shift could be in response to recent industry developments, including the impact of higher-for-longer interest rates on banks’ net interest income (NII), rising regulatory compliance costs, and increasing pressures on interchange revenues affecting nearly all financial firms.
JPMorgan Chase surprised everyone by embracing an unexpected, modern strategy. The bank introduced a retail media network in April this year, venturing into a market already under the sway of major retailers.
Joining the fray after Chase is PayPal, the newest entrant in this market. It plans to establish a new advertising platform, PayPal Ads, centered around transaction data from its nearly 400 million active accounts.
“PayPal Ads”
To kickstart the platform, PayPal has brought on board notable talents.
