PayPal uses your personal data — including your transactions, behavior, and financial history — to train its AI systems, and also uses AI to automatically make decisions about fraud risk and service access.
This analysis describes what PayPal's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The clause establishes PayPal's operational authority to incorporate user data into AI model development and to apply automated decision systems for security and fraud mitigation functions. This defines the scope of permissible data uses beyond transaction processing and direct service provision.
Your transaction history, browsing behavior, and inferred financial data may be used to train PayPal's AI models, and AI-driven automated decisions can affect your account access, fraud flags, and credit assessments without a clearly described opt-out.
How other platforms handle this
We use your information to send you marketing communications about Square products and services that may be of interest to you, including based on your transaction history, usage patterns, and preferences. You may opt out of receiving marketing communications from us.
We collect information about you when you shop in our stores, including through store cameras, loyalty programs, payment processing systems, and other in-store technologies. This information is used to improve store operations, loss prevention, and marketing.
We target (and measure the performance of) ads to Members, Visitors and others both on and off our Services directly or through a variety of partners, using the following data, whether separately or combined: Data from advertising technologies on and off our Services, like web beacons, pixels, ad ta...
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"AI and Automated Decision Making. We may use Personal Information to train our artificial intelligence (AI) models that power our Services and help us deliver more secure, efficient, and personalized services. PayPal also uses Automated Decision Making to provide our products and Services, conduct risk analysis, fraud prevention and risk management to protect our customers and business, including to prevent fraud against our Partners and Merchants and strategic ventures.— Excerpt from PayPal's PayPal Privacy Statement
REGULATORY FRAMEWORK: GDPR Art. 22 grants data subjects the right not to be subject to solely automated decisions producing legal or similarly significant effects, with exceptions requiring explicit consent, contractual necessity, or legal authorization; Art. 21 right to object to processing based on legitimate interests applies to AI training. CPRA §1798.185(a)(16) requires CPPA regulations on automated decision-making opt-outs. EU AI Act (Regulation 2024/1689) classifies credit scoring and fraud detection AI as high-risk systems (Annex III) subject to conformity assessments, transparency requirements, and human oversight obligations. FTC Act Section 5 applies to deceptive AI disclosures.
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The clause establishes PayPal's operational authority to incorporate user data into AI model development and to apply automated decision systems for security and fraud mitigation functions. This defines the scope of permissible data uses beyond transaction processing and direct service provision.
Your transaction history, browsing behavior, and inferred financial data may be used to train PayPal's AI models, and AI-driven automated decisions can affect your account access, fraud flags, and credit assessments without a clearly described opt-out.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by PayPal.