PayPal and OpenAI Partner to Revolutionize AI-Driven Shopping on 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.

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.

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 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 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)