PayPal shares have surged 13% after it signed a deal with OpenAI to have its wallet embedded into ChatGPT. This facility allows users to pay for items using the AI tool.
This agreement means that starting next year, PayPal users will be able to purchase items through ChatGPT, and merchants will be able to use it for selling. “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,” said Paypal CEO Alex Chriss.
OpenAI had announced last month that its users will be able to use ChatGPT to buy from Etsy and Shopify with its Instant Checkout feature available to ChatGPT Pro, Plus, and Free.
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logged-in users. Following that, Walmart too announced a partnership with OpenAI that would allow its customers to make purchases using the AI chatbot.
PayPal will be using the Agentic Commerce Protocol (ACP), an open-source specification developed by OpenAI that lets merchants make their products available within AI apps to allow users to shop through them.
“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 has been positioning itself as essential for this wave of agentic AI shopping. The fintech firm had also entered into similar partnerships with Google and Perplexity.
READ: Walmart partners with OpenAI to allow purchases through ChatGPT (
Chriss mentioned 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.”
Chriss also said in a statement that “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. 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.”