PayPal’s Updated Privacy Notice Allows Data Sharing by Default

PayPal users in the U.S. will need to be on the lookout for some recent changes that will affect their privacy. Claiming to enhance the “shopping experience,” the company’s privacy policy allows the sharing of user data with third-party vendors.

While this may not be all that unusual for online payment platforms, the data-sharing permission is set to default on user accounts. In more plain terms, this means users who don’t want data shared will have to actively go into their profile settings and turn this permission off.

“You’ll always be able to exercise your right to opt out of this data sharing by updating your preference settings in your account under ‘Data and Privacy,’” PayPal wrote in an updated privacy statement, which goes into effect on Nov. 27.

PayPal account holders in California, North Dakota, and Vermont do not have to manually opt out of information sharing. According to the company’s statement, users in these states must give PayPal direct permission to distribute personal data.

PayPal’s Data Opt-Out Policy Could Have Lasting Effects

Sharing personal data with third parties has been a widespread practice of online companies for various reasons. For the most part, app and website users must grant permission to share data.

However, PayPal’s move to make data sharing a default option on accounts could be the start of an alarming trend — a movement that makes sharing personal information a mundane policy. Surveys conducted over the past few years have even revealed that consumers are “less creeped out” by online tracking.

The impact is even more worrying, as many users may not even know they need to opt out of data sharing. While companies might notify users of their data-sharing practices, many notices get lost in spam or forgotten.

PayPal will not be actively sharing consumer data until summer 2025. The payment platform did note that certain users, depending on location, have the right to know which vendors obtain their personal information. A list can be requested from PayPal.