PayPal Partners with OpenAI to Enable Direct Shopping and Payments Within ChatGPT

PayPal partners with OpenAI to let users pay for their shopping within ChatGPT | TechCrunch

Paypal said on Tuesday that it is adopting a protocol in combination with OpenAI's "Instant Checkout" feature to let users pay for their shopping directly within ChatGPT, starting in 2026. Paypal is adopting the Agentic Commerce Protocol (ACP), an open-source specification developed by OpenAI that lets merchants make their products available within AI apps, consequently enabling users to shop using AI agents. Meanwhile OpenAI's "Instant Checkout" feature, launched in September, lets users confirm their order, shipping, and payment details, and complete purchases without leaving ChatGPT. Customers can use their Paypal wallets for checkout, which, the company said, would enable it to provide buyer and seller protection, as well as dispute resolution. The company is also providing technology to handle card payments from within ChatGPT using a separate payments API. And next year, merchants using Paypal products will have their products be discoverable on ChatGPT, starting with categories like apparel, fashion, beauty, home improvement and electronics. Merchants will not need to build any integrations, as PayPal will handle merchant routing and payments behind the scenes. The company said it is also launching an agentic commerce suite that would let merchants feature their catalogs within AI apps, accept payments on different AI apps, and get insights about consumer behavior. PayPal has been working to insert itself as a payments partner within various companies' AI-enabled shopping experiences, particularly as people increasingly use AI apps to do their daily tasks. In May, the company teamed up with Perplexity to let users checkout within the AI search tool, and in September, Paypal said it was adopting Google's Agent Payments Protocol to integrate its products within various Google products. PayPal said, apart from the partnership on commerce, the company is giving enterprise access to ChatGPT to all of its employees and allowing its engineers to make better use of OpenAI's coding tools, Codex. "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," Alex Chriss, president and CEO of PayPal, said in a statement. "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases," he added.

PayPal signs deal with OpenAI to become the first payments wallet in ChatGPT

PayPal has signed a deal with OpenAI to have its digital wallet embedded into ChatGPT so users can pay for items found through the leading consumer AI tool, the company told CNBC exclusively. The agreement, sealed over the weekend, means that starting next year, both sides of PayPal's ecosystem can plug into ChatGPT: PayPal users can purchase items through the AI platform, and its merchants can sell on it, with their inventory listed there, according to PayPal CEO Alex Chriss. "We've got hundreds of millions of loyal PayPal wallet holders who now will be able to click the 'Buy with PayPal button' on ChatGPT and have a safe and secure checkout experience," Chriss said in an interview. The move makes PayPal an early part of OpenAI's efforts to broaden ChatGPT's use for e-commerce. The thinking is that its 700 million-plus weekly users can lean on artificial intelligence to help them find items, similar to a human personal shopper. Last month, OpenAI said its users could buy from Shopify and Etsy merchants, and two weeks ago it announced an e-commerce deal with Walmart. "It's a whole new paradigm for shopping," Chriss said. "It's hard to imagine that agentic commerce isn't going to be a big part of the future." PayPal is attempting to position itself as a payments backbone for the coming era of agentic AI shopping, announcing recent deals with Google and artificial intelligence firm Perplexity. The company will also manage merchant routing, payment validation and other behind-the-scenes aspects of payment processing for PayPal sellers on ChatGPT, so individual merchants don't have to sign up with OpenAI, the firm said. Chriss touted the fact that both consumers and merchants have been verified by the fintech firm, reducing the risk of fraud for either group. Users can pull funds from linked bank accounts or credit cards, or stored balances, to pay for purchases, and they'll get protections, package tracking and dispute resolution. "It's not just that a transaction can happen," Chriss said. "It's that this is a trusted set of merchants, the largest merchant network in the world from PayPal, that are verified, with the largest set of verified consumers in a consumer wallet." PayPal also said it is expanding the use of OpenAI's enterprise AI products for its employees to speed up product cycles.

ChatGPT teams up with PayPal to make it easier for you to buy stuff in chat

Users will soon be able to use PayPal to pay for product recommendations made by OpenAI's ChatGPT. PayPal recently signed a contract with OpenAI to integrate the digital wallet into ChatGPT, reports CNBC. This will allow users to easily pay for the products they discover via the AI tool. The agreement allows PayPal users to make payments via ChatGPT and merchants to list and sell their goods in ChatGPT. OpenAI is apparently taking a big step towards turning ChatGPT into an e-commerce platform and hoping that ChatGPT's approximately 700 million weekly active users will use the AI as a kind of "personal shopper." OpenAI previously announced that it would enable payments via Walmart, Shopify, and Etsy in the US via Instant Checkout. Conversely, PayPal is trying to skillfully position itself alongside leading AI providers, including Google and Perplexity. PayPal's press release on the OpenAI deal says: "This partnership unlocks the convenience of PayPal's wallet in Instant Checkout, including multiple funding options such as bank, balance, and cards, as well as PayPal's buyer and seller protections, and post-purchase services such as tracking and dispute resolution, benefits that consumers value when checking out with PayPal." OpenAI emphasizes that companies don't need to register with ChatGPT to take advantage, as payment validation will be handled by PayPal. This should significantly reduce the risk of fraud for both shoppers and merchants, at least according to PayPal CEO Alex Chriss. As the use of AI apps like ChatGPT rapidly grows, it isn't surprising that sales will soon also be possible with the help of such tools. For numerous sellers and providers, this will enable direct access to users who can be given recommendations on products by the AI. However, language models like ChatGPT are still far from error-free, which can make for risky purchasing decisions. For example, a user who wants to buy a product based on certain specifications could end up with something they didn't want if the AI went off of incorrect or outdated information when making its recommendations. Users should be wary of relying solely on ChatGPT and AI tools for advice. Even now, there is no substitute for real-world recommendations and product tests from trusted people with experience.

ChatGPT is getting PayPal -- here's how OpenAI is becoming an e-commerce giant

OpenAI has been busy. Since its formation, the AI company has been powering through products, inventing ChatGPT, making a web browser, and just about everything in between. And now, announcing the inclusion of PayPal via its ChatGPT tool, this is one of its biggest steps yet. According to PayPal, you'll be able to use the digital payment system directly through ChatGPT sometime in the beginning of 2026. This will be built into ChatGPT's new instant checkout feature, where ChatGPT will present purchase options for items when relevant to a chat. With the integration of PayPal, you'll be able to search, find, and pay for items without ever leaving the ChatGPT browsing system. The inclusion of PayPal will mean you won't even need to add delivery or billing options, and all of your payment options will be in one place. OpenAI has quickly rolled out a lot of important shopping features on its chatbot. A variety of partnerships with companies like Zillow, Booking.com, and DoorDash allow these companies to pop up on ChatGPT when mentioned, suggesting flights, items for sale, or, with options like Spotify, the ability to make a playlist that matches your prompt. ChatGPT also recently got a buy now button powered by OpenAI's agentic commerce protocol. This lets companies on Etsy or those who use Shopify present products if they match your prompt, for example, asking ChatGPT "to find the best prices on the latest iPhone." This included sellers like Glossier, SKIMS, Spanx, and Vuori, but more companies are rolling out over time. Since this announcement, OpenAI has also released its own browser. Between the new PayPal relationship and the ability to shop via both ChatGPT and the Atlas browser, OpenAI is opening up a wide world of AI shopping that no other competitor has quite managed yet. Currently, OpenAI has to partner with trusted companies like Stripe or PayPal to manage a lot of these steps. While ChatGPT is doing the work behind the scenes to surface products and present the payment steps, it needs PayPal to be the official payment method. However, if OpenAI has proved anything, it's that it loves to make its own product and put its name on it. In other words, this recent development is a clear sign of OpenAI's desire to move into the e-commerce field. OpenAI is likely to, in the future, find itself more and more embedded in that world. That could include a ChatGPT alternative to Google or Apple Pay, powered by the company's technology. Alternatively, it could start to look at how it could rival major payment apps like Cashapp, or PayPal, building financial tools that are backed by its AI power. What is certain is that this latest step with PayPal marks OpenAI's intent to be more involved with the way you spend your money.

ChatGPT gets payment wallet in Paypal deal

OpenAI's ChatGPT will soon have a digital wallet built into it, courtesy of Paypal. CNBC exclusively reported the news on Tuesday, noting that people will be able to purchase goods, and companies will be able to sell on the AI platform. "We've got hundreds of millions of loyal PayPal wallet holders who now will be able to click the 'Buy with PayPal button' on ChatGPT and have a safe and secure checkout experience," PayPal CEO Alex Chriss told CNBC. There has been lots of recent news for OpenAI and ChatGPT. The company last week debuted its own AI browser, ChatGPT Atlas. The idea is that ChatGPT's memory of your interactions and the chatbot's capabilities are included in the browser. There are also concerns, naturally, about the accuracy of results, considering AI tools have a tendency to to spit out confidently incorrect information. It seems like not that long ago chatbots were just an interesting curiosity. But now they're attempting to become the primary tool for navigating the web and building out the ability to drain your cash at the click of a button.

You'll be able to browse and buy inside ChatGPT with PayPal soon

PayPal and OpenAI have joined forces, and soon you'll be able to pay with PayPal inside ChatGPT conversations What's happened? PayPal has officially announced its partnership with OpenAI to integrate its digital wallet directly into ChatGPT, enabling users to complete purchases without leaving the conversation. The deal centres on the Agentic Commerce Protocol (ACP), which automatically connects PayPal-enabled merchants and payment processing behind the scenes. Under the partnership, ChatGPT users will be able to pay via PayPal's wallet, including bank, balance, and card options, and access PayPal's buyer/seller protections. PayPal expects merchant integration via ACP in 2026, making product catalogues from its global network available inside ChatGPT. The official announcement highlights that millions of ChatGPT users and hundreds of millions of PayPal customers now share a potential checkout channel. Why this is important: Bringing PayPal into ChatGPT marks a meaningful shift in how conversational AI interacts with online shopping. Instead of stopping at product suggestions or links, ChatGPT will soon be able to help users complete purchases in chat using a familiar and trusted payment platform. That means fewer redirects, fewer steps, and a more streamlined path from discovery to checkout. For PayPal, this integration creates a new commerce channel inside one of the world's most widely used AI platforms. It also gives merchants a way to reach customers right where they already are, without making them jump to another app or website. Interestingly, this isn't PayPal's first attempt at AI-powered shopping. The company recently partnered with Perplexity on similar "agentic commerce" tools, offering a free 12-month Perplexity Pro subscription and access to its Comet browser to showcase the experience. PayPal also announced a collaboration with Google to power agentic shopping and commerce features, though we haven't seen those surface in Gemini just yet. Still, integrating with ChatGPT gives PayPal a far bigger audience to tap into, potentially making this its most visible AI partnership so far. Recommended Videos Why should I care? If you use ChatGPT for shopping or product discovery, this integration means that your next "ask" might end in a payment rather than just a link. You'll be able to check out with PayPal inside a chat interface, using stored payment/shipping info and familiar protections. Product discovery and purchase can happen in one place, without switching apps. You'll get clearer, more consistent checkout experiences across different merchants, so no need for new logins or forms every time. Okay, so what's next? The integration is slated to go live in 2026, at which point products from PayPal's merchant network will become "discoverable and purchasable" inside ChatGPT. Since this is a forward-looking deal, key details like how payments will surface in the UI and what safeguards exist are still unclear. The foundation is set; now it's about execution.

PayPal signs deal with OpenAI to embed payment system into ChatGPT

Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program. ChatGPT users will soon have a new way to buy products using the generative artificial intelligence bot, thanks to a partnership between PayPal and OpenAI. PayPal, which owns the payment platform Venmo, announced Tuesday it is embedding its digital payment wallet into ChatGPT starting next year. When users search for a product using the AI chatbot, they will now have the option to buy it using PayPal to complete their purchase. Shoppers will also be given a "pay another way" option, allowing them to pay using a credit or debit card or bank account. Alex Chriss, president and CEO of PayPal, said in a statement that the OpenAI and PayPal partnership will help people "go from chat to checkout in just a few taps for our joint customer bases." The deal, reported first by CNBC, will also give tens of millions of PayPal merchants -- spanning apparel, fashion, beauty, home improvement and electronics -- a new space to do business. "This integration will make millions of products discoverable and purchasable through ChatGPT," PayPal said in its statement. At the end of 2024, the financial technology company had 434 million active consumer and merchant accounts. OpenAI did not immediately respond to a request for comment.

New PayPal, OpenAI deal means customers can buy directly on ChatGPT

Customers will soon be able to purchase goods directly through OpenAI's ChatGPT by using PayPal. PayPal is teaming up with OpenAI so users can buy goods directly through the artificial intelligence (AI) chatbot ChatGPT. The agreementmeans that PayPal users will be able to purchase items through an instant checkout system and that sellers on PayPal can complete transactions on ChatGPT. Alex Chriss, PayPal's president and chief executive officer, said in a statement that the company will create an experience where people can go from "chat to checkout in just a few taps". Users will also have access to PayPal's wallet feature in instant checkout, including access to their bank, balance and cards, the statement said. Through OpenAI, PayPal users will also be able to track their purchases and file dispute claims. For vendors who are interested in selling, PayPal said it will manage "merchant routing, payment validation, and orchestration," behind the scenes so that "millions" of products will be available to buy on ChatGPT. OpenAI has already started moving into the e-commerce market with the launch of "Buy it in ChatGPT," an initiative that lets all users in the United States buy directly from Etsy sellers. OpenAI said inSeptember that deals with "over a million Shopify merchants," such as beauty company Glossier, Kim Kardashian's lifestyle brand SKIMS, underwear brand Spanx and clothing store Vuori, are coming soon and with multi-item shopping carts. OpenAI also made their "Agentic Commerce Protocol," the source code they used to create the shopping cart, available in open source so developers could also work on it.

Why PayPal's OpenAI gambit pays forward on its agentic ambitions as commerce goes through generational shifts

OpenAI has made no secret of its ambitions to expand its reach into the e-commerce realm and to that end has signed deals to enable users to shop from Shopify and Etsy directly through ChatGPT as well as announcing a partnership with Walmart. The latest recruit to this campaign is PayPal, which will mean buyers and sellers will be able to complete transactions through OpenAI's tech. From PayPal's perspective, the tie-up is another manifestation of what CEO Alex Chriss pitches as three significant general shifts around commerce: One is a massive shift to digital wallets, and this is globally. The second is a real shift to buy now, pay later. Again, a younger generation that's now moving the way they're spending. And this we think can start to take share away from credit cards and be the way that this new generation is going to start to pay. And then the third shift we talk about is towards agentic commerce. These are three massive shifts that can recast the entire commerce landscape, and we think we're extremely well positioned in all three of them....The mindset that we have from a company is these are generational shifts that we are well positioned and we must win in. Last September, the firm launched PayPal Everywhere in the US as an opening gambit to to move beyond what Chriss now calls "our legacy in online branded checkout". He argues: We need to be available everywhere a consumer wants to make a purchase. But this is about more than being present across channels. It's fundamentally expanding what PayPal means to our customers and the total spending we can capture. Historically, PayPal was synonymous with online retail payments. Today, we're evolving the way consumers pay for all of their commerce needs, moving beyond retail into services, subscriptions, bills, everyday expenses and more. We are now playing for a much bigger addressable market. To achieve its agentic AI goals, PayPal is actively partnering with third parties, such as Perplexity. Last month it signed a multi-year partnership with Google to create new AI shopping experiences. The OpenAI tie-up is the next such partnership to take place. According to the official announcement blah blah, PayPal will adopt the Agentic Commerce Protocol (ACP, a joint initiative between Stripe and OpenAI: This partnership unlocks the convenience of PayPal's wallet in Instant Checkout, including multiple funding options such as bank, balance, and cards, as well as PayPal's buyer and seller protections, and post-purchase services such as tracking and dispute resolution, benefits that consumers value when checking out with PayPal. PayPal will also support OpenAI Instant Checkout through the delegated payments API, managing payment processing for card payments. For the tens of millions of merchants who use PayPal, ACP will bring in 2026 the product catalogs of small businesses as well as marquee retail brands across apparel, fashion, beauty, home improvement, and electronics to ChatGPT commerce, via PayPal's ACP server -- a trusted, scalable, and compliant access layer to a global network of merchants that will not require individual merchant integrations. PayPal will manage merchant routing, payment validation, and orchestration behind the scenes. This integration will make millions of products discoverable and purchasable through ChatGPT. PayPal has also. announced its own agentic commerce services, which help merchants sell through multiple AI platforms, including Google, OpenAI and Perplexity. Merchants will have one integration to access consumers through multiple LLMs (Large Language Models). Chriss says: We want merchants to be able to sell to consumers anywhere and everywhere. We want it to be online. We want it to be in-person and we want it to be agentic. And so agentic is just an evolution of this strategy. He's confident that PayPal is extremely well-positioned to win in this space: On the merchant side, merchants are going to need to figure out how to integrate with each of these LLMs. And that's hard because there's multiple LLMs that are out there. And whether you're a large enterprise or a small business, you really don't have the bandwidth to go figure out how to integrate with each and every one of these LLMs, make your catalog available, understand the identity and fraud protection that comes with each of these different elements. And so what we've announced was our PayPal agentic commerce services, which enables merchants to integrate once with PayPal, a partner that they've known and loved and integrated with for years, and be able to orchestrate their services to every LLM that's out there so that they get full coverage of consumers. So that is a huge win for merchants. We give them seller protection. We give them the ability to scale across all the different LLMs. From the consumer standpoint, we're, again, very well positioned. We've got the largest wallet ecosystems that are out there and our ability to give consumers the trust, the safety, the buyer protection and the ability to get access and make purchases on any of the LLMs they want to is a huge win. They get to use the wallet that they know and love and have a great end-to-end experience, which includes not only the purchase through the LLM, but also then all the things that happen afterwards, whether it's package tracking or customer service or returns. So that's again, a big win for consumers. And for LLMs providers themselves, PayPal has much to offer he suggests: It would take over a decade if they wanted to go and try to build the same kind of merchant ecosystem of the head, the torso and tail of merchants that PayPal has established over the last couple of decades. So instead, they get to partner once with us and get access to tens of millions of merchants, with identity, authentication, fraud protection and payment processing on a global scale. And so we really feel like we are connecting this ecosystem together. It will take time for agentic to eat into overall purchasing. But if you think about we want to meet customers where they are, online, off-line, agentic and PayPal is in a very strong position there. Agentic commerce will take time, but we do believe consumer behavior will shift. PayPal is building for that future. PayPal does indeed look very well-positioned in this respect. Chriss is right to build in caveats about this being a long game, but the direction of travel is clear and the company looks as though it's taken the right first steps on the journey.

ChatGPT is turning into a shopping mall -- and PayPal's running the registers

PayPal announced Tuesday that its digital payment system will be integrated into ChatGPT, inviting anyone who uses it to shop directly from the chatbot. Starting next year, ChatGPT users will be able to check out with a click through a PayPal account and connect directly with the tens of millions of sellers who rely on PayPal's payments system. "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases," PayPal CEO Alex Chriss said in a press release. PayPal's shares rose on the news, which was announced on the same day as the company's quarterly earnings report. PayPal is all-in on an AI-focused future of online retail. Beyond the new ChatGPT plans, the company is "collaborating to create new AI shopping experiences" with Google and partnering on free premium trials with AI search engine Perplexity.

Paypal to be first payment wallet in ChatGPT in agentic commerce boost

As more users use their AI chatbots to source purchases, Paypal has struck a deal with OpenAI to enable instant payment within Chat GPT, a shot in the arm for agentic e-commerce. As so many big players bet on agentic AI and predict a future where people shop directly from their AI chatbots, true agentic commerce just got a shot in the arm with the deal struck by Paypal and OpenAI which will see instant payments available to buyers within ChatGPT. Paypal has said it will adopt the Agentic Commerce Protocol (ACP) to expand payments and commerce in ChatGPT, enabling millions of ChatGPT users to check out instantly using PayPal. PayPal will support payments processing for merchants leveraging OpenAI Instant Checkout, and will connect its global merchant network to OpenAI, "creating a platform for tens of millions of small businesses and the largest brands in the world to sell within ChatGPT". "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," said Alex Chriss, president and CEO of PayPal. "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases." PayPal says the move will allow even its smallest merchants to become discoverable and purchasable through ChatGPT. "For the tens of millions of merchants who use PayPal, ACP will bring in 2026 the product catalogues of small businesses as well as marquee retail brands across apparel, fashion, beauty, home improvement, and electronics to ChatGPT commerce, via PayPal's ACP server -- a trusted, scalable, and compliant access layer to a global network of merchants that will not require individual merchant integrations," it said in a statement yesterday. The new partnership also sees PayPal expand its AI strategy with OpenAI beyond commerce "scaling access to ChatGPT Enterprise for its 24,000+ employees, enabling engineers with Codex, and broadly expanding direct use of OpenAI's APIs". Amid the AI goldrush, AI shopping tools are seen as the next frontier for e-commerce, with AI 'agents' researching, comparing prices and going ahead and purchasing on a user's behalf, based on their previous habits and preferences and on factors like pricing and online reviews. On news of the OpenAI deal, PayPal shares surged on the markets by some 10pc, as investors liked what they saw. PayPal invented digital person-to-person payments back in 1998 and in a recent podcast with siliconrepublic.com's The Leaders Room, global chief risk officer Aaron J Webster spoke of PayPal's ability to deal with the "incredible complexity" of how you move $2trn of money around the world across 45m merchants and 430m consumers, and how PayPal was well placed for the AI commerce revolution. It's well worth a listen in hindsight. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

A ChatGPT Partnership Is Lifting PayPal as AI and Shopping Continue to Pair Up

Meanwhile, PayPal reported better third-quarter results than expected and increased its outlook for the fiscal year. PayPal shares shot higher Tuesday after the company announced a partnership with ChatGPT operator OpenAI and released strong third-quarter results. PayPal Holdings (PYPL) will extend its services to ChatGPT users, bringing the number of AI chat operators it's helping handle e-commerce transactions to at least three. Those shopping via ChatGPT will be able to tap into PayPal's consumer protection service, while merchants will be able to access PayPal's payment processing tools, PayPal announced Tuesday. PayPal's alliance with OpenAI comes after established retailers, such as Walmart (WMT) and Etsy (ETSY), announced plans to sell to ChatGPT users. The partnerships are expected to bolster consumer trust in shopping via ChatGPT, analysts said. "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," PayPal CEO Alex Chriss said in a statement. He said the partnership will "help people go from chat to checkout in just a few taps for our joint customer bases." Shares of PayPal were recently up some 9%, though they remain in the red year-to-date. PayPal is working with other AI chat operators, including Perplexity and Alphabet's (GOOG, GOOGL) Google, and allowing merchants to tap into their various chat systems by integrating their system once with PayPal, Chriss said Tuesday. "We've got actually quite good scale and ubiquity across the ecosystem," he sad on a conference call, according to a transcript made available by AlphaSense. "So [we're] very well-positioned to win as Agentic Commerce continues to evolve." PayPal also released strong third-quarter numbers and raised its earnings outlook for the fiscal year. The company reported a 7% year-over-year increase in revenue to $8.4 billion -- exceeding the $8.2 billion analysts were expecting, according to consensus analyst estimates compiled by Visible Alpha. That amounted to $1.34 in adjusted earnings per share, beating the $1.20 consensus estimate from Visible Alpha.

PayPal wallet comes to ChatGPT

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. PayPal says it is adopting the Agentic Commerce Protocol (ACP), an open standard that OpenAI codeveloped with another payments giant, Stripe. This means that millions of ChatGPT users will be able to check out instantly using PayPal, and PayPal will support payments processing for merchants using OpenAI Instant Checkout. PayPal will also connect its global merchant network to OpenAI, creating a platform for tens of millions firms to sell within ChatGPT. Through PayPal's wallet, shoppers will be able to use multiple funding options such as bank, balance, and cards, as well as the firm's buyer and seller protections, and post-purchase services such as tracking and dispute resolution. Alex Chriss, president and CEO, PayPal, says: "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases." Under the partnership, PayPal is also expanding its AI strategy with OpenAI beyond commerce -- scaling access to ChatGPT Enterprise for its 24,000+ employees, enabling engineers with Codex, and broadly expanding direct use of OpenAI's APIs. The deal is another milestone in the rise of agentic commerce, coming after OpenAI's deal with Stripe and PayPal's agreement this week to integrate Mastercard's agentic payments platform into it wallet

PayPal teams up with OpenAI to bring shopping to ChatGPT, shares jump after big update

PayPal announced a new deal with OpenAI on Tuesday that will let ChatGPT users buy products using PayPal's digital wallet. The news pushed PayPal's shares up 13% in premarket trading, showing strong investor excitement. PayPal also raised its financial outlook for 2025 and declared its first-ever dividend in its 27-year history -- a sign that the company feels confident about its future profits and cash flow, as per the report by Reuters. Through the OpenAI partnership, PayPal's global merchant network will now connect directly with ChatGPT, meaning users can browse, compare, and buy products without leaving the AI chat. AI shopping tools like this are becoming the next big trend in online retail, as they can automatically search, compare, and even purchase products for users. These AI tools act as digital shopping assistants -- they can understand what users like, set spending limits, read reviews, and track prices over time. PayPal CEO Alex Chriss said, "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases." PayPal said it now expects full-year adjusted earnings per share (EPS) to be between $5.35 and $5.39, higher than its earlier forecast of $5.15 to $5.30, as stated by Reuters. Analysts had predicted $5.24, according to LSEG estimates, so PayPal's new forecast beats market expectations.The company's board approved a quarterly dividend of 14 cents per share, which is 10% of adjusted profit, marking PayPal's first dividend ever. Under CEO Alex Chriss, PayPal has restructured its business in recent years -- shifting focus from fast growth to profitability and efficiency. PayPal was a pandemic-era favorite, but after people returned to in-store shopping, its growth slowed. This led the company to cut costs and focus on high-margin services instead. Despite inflation and uneven global spending, PayPal's payment volumes have stayed strong, showing that its core business remains solid, as per the report by Reuters. In the latest update, total payment volume grew 7% on a foreign exchange-neutral basis to $458.1 billion. Q1. What is PayPal's new partnership with OpenAI about? PayPal has teamed up with OpenAI to let ChatGPT users buy products using PayPal's wallet directly inside the chat, linking its global merchant network to AI shopping. Q2. Why did PayPal's shares rise after the OpenAI deal? Investors reacted positively because the OpenAI partnership, higher profit forecast, and PayPal's first-ever dividend show strong confidence in the company's future.

PayPal stock soars on OpenAI partnership (PYPL:NASDAQ)

PayPal (NASDAQ:PYPL) shares jumped nearly 15% premarket on Tuesday after the fintech firm announced a deal with OpenAI (OPENAI) to have its digital wallet embedded into ChatGPT. PayPal will integrate the Agentic Commerce Protocol (ACP) to expand its payments and commerce capabilities PayPal's integration will allow seamless instant checkouts and payment processing within ChatGPT, potentially increasing transaction volume and relevance in e-commerce. Merchants can showcase product catalogs to ChatGPT users and offer instant checkout, extending reach and simplifying commerce for potential buyers leveraging AI assistance. The partnership places PayPal as an early enabler in AI-driven commerce through ChatGPT, enhancing its potential role as a primary payments provider in conversational commerce.

OpenAI Expands eCommerce Plans With PayPal Partnership | PYMNTS.com

The arrangement will see PayPal adopt the Agentic Commerce Protocol (ACP) to let users pay for items they find using the artificial intelligence (AI) startup's flagship product, according to a Tuesday (Oct. 28) news release. In addition, PayPal says it will support payments processing for merchants leveraging OpenAI Instant Checkout. "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," PayPal CEO Alex Chriss said in the news release. "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases." The deal comes as OpenAI is expanding its footprint in the eCommerce space, having recently forged partnerships with Shopify, Etsy and Walmart, the last of which drove Walmart's stock to a record high following the announcement. "It's a whole new paradigm for shopping," Chriss told CNBC. "It's hard to imagine that agentic commerce isn't going to be a big part of the future." The announcement also notes that for "the tens of millions of merchants who use PayPal," ACP will next year bring their product catalogs to ChatGPT commerce. "PayPal will manage merchant routing, payment validation, and orchestration behind the scenes," the company said. "This integration will make millions of products discoverable and purchasable through ChatGPT." PYMNTS wrote earlier this month about the way AI has become integrated into eCommerce, citing projections from Bank of America Securities that ChatGPT will handle approximately 20 billion shopping-related messages this year. Last year's holiday season saw global retail sales jump to $1.2 trillion, including $282 billion in the United States, as AI chatbot and agent engagement rose 42%. However, the same systems fueling that growth are combining discovery and checkout into a single step, increasing exposure to fraud, chargebacks and questions of consumer trust, that report said. With OpenAI's Instant Checkout now live, conversational platforms are turning into marketplaces. The shift is lessening the distance between product discovery and purchase. "AI agents are fast becoming the new gatekeepers of commerce, shrinking discovery from thousands of listings to a handful of curated options and collapsing checkout into a single click," PYMNTS wrote in a separate report.

PayPal integrates with OpenAI for Agentic Commerce in ChatGPT

PayPal, Inc. has announced a strategic adoption of the Agentic Commerce Protocol (ACP) to significantly expand its payments and commerce footprint within ChatGPT. This partnership aims to integrate PayPal's global payment capabilities directly into the AI environment, creating new avenues for commerce for both consumers and merchants. The integration is set to allow millions of ChatGPT users to complete purchases instantly using their PayPal accounts. Key features for consumers checking out include: Furthermore, PayPal will support OpenAI Instant Checkout via a delegated payments API, taking responsibility for the processing of card payments. The partnership extends a platform to tens of millions of small businesses and major global brands. Beginning in 2026, ACP will facilitate the introduction of product catalogs from diverse sectors -- including apparel, beauty, and electronics -- into ChatGPT commerce through PayPal's ACP server. This server is described as a trusted, scalable, and compliant access layer that eliminates the need for individual merchant integrations. PayPal will manage the underlying processes, including merchant routing, payment validation, and orchestration, making millions of products both discoverable and purchasable directly through the AI interface. To support this expansion, PayPal is introducing two new agentic solutions: Merchants can sign up for Store Sync today by visiting PayPal.ai, with enrollment becoming fully available soon. Merchant discoverability on Perplexity is expected before the end of the year. Beyond commerce, PayPal is also expanding its internal AI capabilities with OpenAI. The partnership includes scaling access to ChatGPT Enterprise for its over 24,000 employees, enabling engineers with Codex, and broadening the direct use of OpenAI's APIs. This is intended to accelerate product development and boost employee and customer experience impact across the organization.

PayPal Becomes ChatGPT's First Integrated Payments Partner

PayPal has officially become the first digital payments wallet integrated into ChatGPT, marking a historic milestone in the intersection of artificial intelligence and financial technology. This partnership between PayPal and OpenAI is designed to introduce seamless, secure, and easy payment systems directly into the ChatGPT platform, making the connection between conversation and commerce a reality. It represents a remarkable advancement in how digital transactions can evolve along with AI innovation. This is not merely an enhancement of technology; it is a transformation. It anticipates the future of what is referred to as "agentic commerce", where AI can leverage an experience to find, evaluate, and effect a transaction for a product in a single conversation. The combination of PayPal's financial infrastructure with ChatGPT's conversational intelligence is designed to transform how consumers interact with brands, shop online, and make real-time transactions, signaling a new era of more intelligent AI-enabled social commerce.

PayPal to connect millions of merchants to ChatGPT in 2026 By Investing.com

SAN JOSE - PayPal (Market cap: $67.12B), a prominent player in financial services with annual revenue of $32.29B, announced Tuesday it will adopt the Agentic Commerce Protocol (ACP) to expand its payment capabilities within ChatGPT, enabling users to make purchases directly through the AI platform. According to InvestingPro analysis, the company's strong financial health and perfect Piotroski Score of 9 position it well for this strategic expansion. Starting in 2026, PayPal will connect its global network of tens of millions of merchants to ChatGPT, making their product catalogs discoverable and purchasable through the AI assistant. The integration will span various retail categories including apparel, fashion, beauty, home improvement, and electronics. Trading at a P/E ratio of 15.15, InvestingPro's Fair Value analysis suggests PayPal is currently undervalued, potentially making this strategic move even more significant for investors. According to the press release, PayPal will also support OpenAI's Instant Checkout feature, processing payments and offering multiple funding options such as bank accounts, PayPal balance, and cards. The service will include PayPal's buyer and seller protections along with post-purchase services like tracking and dispute resolution. Discover more insights about PayPal's growth potential and 6 additional ProTips with a comprehensive InvestingPro subscription, including exclusive access to detailed Pro Research Reports. "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," said Alex Chriss, President and CEO of PayPal, in the company statement. The partnership extends beyond commerce, with PayPal expanding access to ChatGPT Enterprise for its 24,000+ employees and utilizing OpenAI's APIs and Codex for product development. PayPal will manage merchant routing, payment validation, and orchestration through its ACP server, creating what the company describes as "a trusted, scalable, and compliant access layer" that won't require individual merchant integrations. The announcement represents a significant expansion of AI-powered commerce capabilities, though the full implementation is not expected until 2026. In other recent news, Coinbase has launched new business payment tools utilizing the USDC stablecoin. The company introduced global payouts and payment links on Coinbase Business, aimed at streamlining cross-border payments with lower fees and instant settlement. Meanwhile, PayPal Holdings Inc. has been in the spotlight after a mistake by stablecoin issuer Paxos led to the accidental minting of $300 trillion in PYUSD stablecoin, which was quickly rectified. PayPal also announced the upcoming launch of PayPal Ads Manager, a new advertising platform for small businesses, expected to roll out in early 2026. This development aims to help small businesses create their own retail media networks. On the analyst front, Goldman Sachs downgraded PayPal from Neutral to Sell, citing transaction margin headwinds and maintaining a price target of $70.00. Jefferies also maintained a Hold rating on PayPal, with concerns over the growth of branded payment volume. These recent developments reflect ongoing changes and challenges within the financial technology sector. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

PayPal to integrate direct payments into ChatGPT starting in 2026

is integrating its payment platform into ChatGPT through a collaboration with . Thanks to this partnership, users will be able to purchase goods directly within the AI chatbot starting in 2026. The system is based on OpenAI's Agentic Commerce Protocol (ACP), an open-source standard that allows merchants to showcase their products within AI applications, enabling AI agents to facilitate shopping experiences for users. Complementing the ACP is OpenAI's Instant Checkout feature, launched in September, which streamlines the purchasing process by allowing users to confirm order details, shipping information, and payment within ChatGPT -- without ever leaving the chatbot. Users can use their wallet to pay for orders and benefit from buyer and seller protections, including dispute resolution. Expanding merchants' reach Additionally, is developing a separate payments API to process card transactions directly within ChatGPT. From next year, merchants utilizing products will be able to showcase their offerings in ChatGPT, initially focusing on categories like clothing, fashion, beauty, home decor, and electronics. With this integration, online retailers no longer need to build separate integrations, as handles merchant routing and payments behind the scenes. To enhance this experience, is launching an agentic commerce suite that allows online retailers to showcase their product catalogs in AI apps, accept payments across various AI platforms, and gain insights into consumer behavior. PayPal's strategy reflects a broader effort to position itself as the preferred payment partner for scalable, AI-enabled shopping experiences as consumers increasingly turn to AI for everyday tasks. Prioritizing AI integration Previous partnerships with Perplexity and Google demonstrate PayPal's commitment to integrating its services into AI platforms. Beyond commercial collaboration, also offers all of its employees access to ChatGPT for Business and provides its engineers with OpenAI's coding tools, Codex, to enhance their development capabilities. , president and CEO of , spoke about the significance of the partnership: "Hundreds of millions of people use ChatGPT every week for help with their daily tasks, including discovering products, while more than 400 million people use to make purchases. By partnering with and adopting the Agentic Commerce Protocol, aims to provide seamless payment and shopping experiences, allowing users to go from chat to checkout in just a few clicks." (fc) Follow Business AM on Want access to all articles? Enjoy our limited-time offer and subscribe here!

PayPal strikes payments wallet deal with OpenAI's ChatGPT, shares surge

(Reuters) -PayPal on Tuesday announced a partnership with AI giant OpenAI to allow ChatGPT users to check out instantly using the payments firm, sending its shares up 13% in premarket trading. It will also connect its global merchant network to OpenAI, allowing users to sell within ChatGPT. Agentic AI shopping tools are emerging as the next big shift in online retail, as the artificial intelligence system can autonomously research, compare and purchase products for consumers. These tools act as digital assistants by understanding user preferences, setting budgets, evaluating reviews and tracking prices over time. "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases," PayPal CEO Alex Chriss said in a statement. The company will also announce results for the quarter ended September 30 on Tuesday. (Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)

OpenAI and PayPal partner to let users shop and pay directly in ChatGPT

PayPal is also expanding its use of AI in partnership with OpenAI. PayPal has announced a major partnership with OpenAI to make it possible for people to shop and pay directly inside ChatGPT. By adopting the new Agentic Commerce Protocol (ACP), PayPal will power payments and commerce within ChatGPT, allowing millions of users to complete purchases quickly. With this partnership, ChatGPT users will be able to buy products they discover during a chat. This means users can move from conversation to checkout in just a few taps. PayPal will support OpenAI Instant Checkout through the delegated payments API. "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," said Alex Chriss, President and CEO of PayPal. "By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases." Also read: Adobe and YouTube partner to make Shorts creation easier with new Premiere mobile app This partnership brings the convenience of PayPal's wallet to OpenAI Instant Checkout, giving customers access to multiple payment options- including bank accounts, PayPal balance and cards- along with PayPal's trusted buyer and seller protections. It also enables post-purchase services such as order tracking and dispute resolution. Also read: Google Pixel 10 price drops by over Rs 12,300 discount on Amazon: Check deal details here For merchants, the partnership opens new opportunities. PayPal's ACP server will connect tens of millions of small businesses and major retail brands directly to ChatGPT without requiring individual integrations. This system will make millions of products from categories like fashion, beauty, electronics, and home improvement discoverable and purchasable in ChatGPT. Behind the scenes, PayPal will manage merchant routing, payment validation, and orchestration. Beyond commerce, PayPal is also expanding its use of AI in partnership with OpenAI. The company will scale access to ChatGPT Enterprise for its 24,000 employees, use Codex to support engineers, and integrate more of OpenAI's APIs.