HomeWinBuzzer NewsPayPal Tries to Quietly Share User Data with Merchants

PayPal Tries to Quietly Share User Data with Merchants

PayPal will share user data with third-party retailers to provide personalized shopping experiences.

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By the summer of 2025, PayPal users will see their personal data shared with third-party retailers as part of a new feature aimed at creating more tailored shopping experiences. However, the decision to enable this option by default has already sparked debate, with privacy advocates criticizing the approach and urging users to take action before it goes live.

PayPal has provided an option for those uncomfortable with sharing their information to disable it in their settings. Still, the company’s move to changes policies and then make this an opt-out feature has left many questioning why it’s not the other way around.

Data Sharing Activated Automatically

PayPal’s new data-sharing feature, called “Personalized Shopping,” is part of an effort to customize the shopping experience for its users by passing on their personal data to retailers. The functionality, which will be turned on by default, is supposed to help PayPal offer users relevant products and offers, but critics have raised privacy concerns over the choice to automatically activate the feature. Users must go into their settings to turn it off manually.

In the US, data collection is expected to begin in late November 2024, with the full launch set for mid-2025. To prevent their data from being shared, users can visit their PayPal account settings, head to Data & Privacy, and disable the Personalized Shopping option.

Regional Variations in Data Policies

The implementation of this new policy won’t be uniform across all regions. In the UK, the rollout will come sooner, with users seeing this change reflected in their settings by October 2024. However, the option to opt out won’t be listed as “Personalized Shopping,” as in the US. Instead, UK users will find it under “Interest-based Marketing” within their privacy settings.

Users in different regions will need to familiarize themselves with the slight variations in terminology when navigating their privacy options. This inconsistency might create confusion for those unfamiliar with the distinctions.

How to Disable PayPal’s Data Sharing

Disabling PayPal’s new data-sharing feature will depend on where you are. In the US, users can access the settings by going to Data & Privacy > Manage Shared Info, where the “Personalized Shopping” option will be toggled on by default. Simply switch it off to opt-out.

For users in the UK, the path looks slightly different. They will need to access “Interest-based Marketing” under privacy settings and toggle off the options for both PayPal-based and internet-based marketing. Similar processes are expected for users in the EU.

PayPal’s upcoming change follows a broader trend among tech companies, where user data is increasingly shared for AI training or personalized experiences without explicit consent. LinkedIn, for instance, introduced an AI training feature recently, where users’ public posts and data were automatically included unless they opted out.

The approach has drawn widespread criticism, particularly from privacy advocates, who argue that users should have the choice to opt in to such features, rather than being forced to disable them. Companies like Facebook and Instagram have also implemented similar data-sharing models, fueling frustration among users who find themselves constantly checking privacy settings to prevent their information from being collected.

Last Updated on November 7, 2024 2:39 pm CET

SourcePayPal
Luke Jones
Luke Jones
Luke has been writing about Microsoft and the wider tech industry for over 10 years. With a degree in creative and professional writing, Luke looks for the interesting spin when covering AI, Windows, Xbox, and more.

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