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Growing Privacy Concerns Emerge from PayPal’s Updated Data Sharing Policies

Image Source: Tero Vesalainen / Shutterstock

PayPal has reportedly revised its privacy policy to facilitate the sharing of user data with external parties. Users do have an option to opt-out of this data sharing.

A recent report from 404 Media claims that PayPal has automatically enrolled users in data sharing with marketers without obtaining explicit consent. The company states this move is intended to provide a “personalized shopping experience” for its customers.

Users discover opt-out for third-party data sharing, sparking debate on digital privacy

The article includes a screenshot of a feature labeled “Personalized Shopping.”

This feature is described as: “Let us share products, offers, and rewards that may interest you with participating stores.” Below the toggle, PayPal indicates that it plans to enhance tailored experiences for users by early summer 2025, allowing users to adjust their data sharing preferences at any moment.

Additionally, there’s a link leading to a pop-up that states, “PayPal will share recommendations with participating stores based on your shopping inclinations and history. Your information helps these stores present products, offers, and rewards that you might find appealing.”

However, the key issue is that this setting was already activated by default. This raises ethical questions, as it seems to be a tactic to accumulate data prior to launching the “Personalized Shopping Experience.” PayPal is not the first to adopt such privacy-invasive marketing approaches, and it likely won’t be the last. For more details, please check their Privacy Policy (Internet archive link).

How to disable data sharing on PayPal

To turn off data sharing, follow this path: Settings > Data & Privacy > Manage shared info > Personalized shopping. Switch off the option under Personalized Shopping.

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If you can’t find this option, you’re not alone. Many users have reported that they do not see the “Manage Shared Info” section, probably because this change has been mostly implemented in the U.S. Still, there is a way to make the option visible. Log into your PayPal account and navigate to this URL: https://www.paypal.com/myaccount/privacy/settings/recommendations

Some users have noted success in opting out of interest-based marketing via https://www.paypal.com/myaccount/privacy/.

Neither Martin nor I were able to locate this setting in our accounts based in Germany and India, respectively. Nevertheless, one user from France mentioned that, despite the GDPR protections, this option was available and turned on in their account.

I did find an option to opt out of third-party cookies (including those from Google, Facebook, and LinkedIn) in the Manage Cookies section, but this is separate from the controversial data-sharing feature introduced by PayPal. These cookie preferences pertain to the advertisements shown by PayPal.

Did PayPal notify users about this change?

Some users have reported receiving an email from PayPal about updates to the Privacy Statement. In this email, PayPal states: “Our updated Privacy Statement outlines how we will utilize the information collected about you after November 27, 2024, to inform participating stores about products, offers, and rewards that might attract you. You can opt-out of this at any time through your profile settings under ‘Data and Privacy.’”

Moreover, another user pointed out that the email specified that residents of California, North Dakota, or Vermont would not have this setting automatically active and would need to enable data sharing to enjoy a personalized experience.

It’s possible that this email may have gone to the spam folder, as I did not receive one, potentially due to the region-specific implementation.

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Image Source: Tero Vesalainen / Shutterstock

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