PayPal is looking to re-engage existing users and connect with a new generation of younger consumers as it seeks to grow brand consideration in the UK.

As part of that effort, the company has launched a $15m (£11.23m) campaign, designed to tap into what it describes as “summer spending optimism”. The campaign marks PayPal’s most significant integrated marketing push in the UK in years.

“This isn’t just another campaign that we’re running, it’s a really strategic power play by PayPal,” explains senior director of UK marketing Deborah Hayes, who joined the company in March this year.

Fronted by actor Will Ferrell, the campaign aims to encourage consumers to “fall back in love” with PayPal.

“We’ve been around for over 20 years. People are very much aware of PayPal, but I don’t necessarily think they are engaging with us and building on that trust,” she adds. “The campaign objective is to re-engage and make that connection.”

Designed to be “simple” in order to capture the attention of new and existing audiences, ‘Check out PayPal’ launched 1 July and will run until 30 September. The campaign showcases the new 3% cashback promotion when customers use PayPal to checkout online, applicable across fashion, dining, home and transport. 

We have such a big opportunity to think about the next generation and what their needs are, but also continue to offer products and services that cater to our existing audiences.

Deborah Hayes, PayPal

The timing of the brand push reflects what Hayes describes as “favourable” market conditions. As more consumers shift from cash to digital payments and ecommerce continues to grow, demand is rising for “completely frictionless” payment options.

“This is coupled with demand for flexible payment options. Whether it’s buy now, pay later, credit or cross-border payments, we offer all of that, which is underpinned by this heritage of trust,” she says.

Yet, financial payment platforms are a “highly competitive” environment. Consumers are increasingly demanding trust and security from financial companies, and there is a “huge pressure” to ensure consumers’ money is being managed safely.

Although PayPal is not a bank, its product offers – including cashback and instalment payment options – place it in direct competition with the likes of Revolut and Monzo, especially among younger users. The brand’s ‘buy now, pay later’ offer means it competes with newer entrants like Klarna and Clearpay.

“We have such a big opportunity to think about the next generation and what their needs are, but also continue to offer products and services that cater to our existing audiences,” says Hayes.

How marketing is driving growth in financial service brands

Founded 25 years ago, PayPal’s original proposition was to make it easier and faster for people to send and receive money online. In 2024, the firm introduced ‘PayPal Everywhere’, a refreshed consumer proposition designed to position the brand as an option for all types of payments, both online and in-store.

In the UK, Hayes claims around 24 million people use PayPal annually and in 2024 the company reported a 7% rise in global revenue to $31.8bn (£24bn).

Despite high brand awareness, with 97.2% of UK consumers recognising PayPal (compared to 75.2% for Monzo and 66.1% for Klarna), according to YouGov, consideration has grown only marginally in recent years – from 19.2% in 2020 to 20% in 2024. In contrast, Klarna (up from 4.9% to 8.4%) and Monzo (up from 9% to 15%) have seen more notable increases in consideration over the same period.

The campaign has rolled out in phases, beginning with teaser content on social channels, before moving to live PR activations, primetime TV placements, digital video, out-of-home placements, targeted CRM and updated homepage content. The launch also coincides with a refreshed app experience, which plays a “central role” in the promotion, says Hayes.

“Consumers are increasingly managing and interacting with their shopping and payments in an app,” she explains. “This supports the long-term vision of PayPal to be a smart shopping companion.”

While still early days, Hayes says the cashback offer has already seen strong uptake, with hundreds of thousands signing up. Fashion is emerging as the most popular category so far, which provides additional insights into how PayPal can innovate going forward.

“As an organisation, we are thinking about how to make that journey for our consumers who are shopping with us across those fashion brands even better,” she adds.

Local vs global

The UK campaign builds on a global brand platform first launched in the US last year, featuring Will Ferrell. While the creative concept remains consistent, Hayes explains the UK version has been tailored to reflect local consumer behaviour.

She describes the process as a “delicate balance” between maintaining global consistency and ensuring local relevance.

“We take the US toolkit, but then adapt it meticulously for the UK audience,” Hayes explains. “For example, the original campaign launched in the US during winter, with products that weren’t necessarily relevant for the UK. So we took Will and the messaging and re-filmed it. It’s the same principle, but we just altered it.”

Although market teams work independently, they share “vital lessons” from other markets about what is successful or not.

“As a global brand, we are taking all of those insights. As we launch in the different markets, the campaigns just get stronger and stronger, because we can use those lessons here in the UK,” she adds.

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Since joining PayPal in March, the first thing Hayes did was “get under the skin” of the market. One of her priorities was to better understand the UK consumer, refine the end-to-end customer journey and “nail the fundamentals”.

“Leveraging all of those insights from the US to build out such a great journey, whether that’s the tailored app experience, refreshed web pages and our targeted CRM, was a priority,” she explains. “It’s been fantastic to do all of that before you go live and see the more high-profile activations with the ATL plan.”

In the coming months, Hayes will be assessing whether the campaign has translated into brand and commercial metrics, specifically consumer sentiment and brand affinity.

“I’ve also got to track that back to those adoption metrics as we go through. So how many transactions are they doing? How often are they doing them? Where are they spending their money? Taking quite a strong look at that. It’s definitely brand and commercial,” she adds.