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PayPal plans an ad network built off your purchase history
(www.theregister.com)
This is a most excellent place for technology news and articles.
That's per store though, presumably when they sign up with a payment provider (because there's a lot of rules about e.g. using credit cards to gamble with).
If I buy sex toys from Tesco, it's still showing up as "groceries". If I buy from a sex shop, it's going to be more clear cut.
I can see from my emails that PayPal send out itemised receipts on behalf of their customers, so they're definitely collecting more data than the big two.
Life pro tip: Open a sex shop that sells groceries, to devalue the data analysis ^^
Surprise! You've been acquired by Amazon!