PayPal has partnered with OpenAI to embed its digital wallet directly into ChatGPT, allowing users to make purchases within the AI platform. The deal, confirmed by PayPal CEO Alex Chriss, sent PayPal shares soaring up to 14% in premarket trading.
Starting next year, both PayPal users and merchants will be able to engage directly on ChatGPT — users can pay through the “Buy with PayPal” button, while merchants can list and sell their products via the AI tool. Chriss said this ensures a secure checkout experience for PayPal’s hundreds of millions of users.
The move positions PayPal at the forefront of AI-driven e-commerce, following OpenAI’s recent integrations with Shopify, Etsy, and Walmart. Chriss called it “a whole new paradigm for shopping,” emphasizing the rise of agentic commerce — where AI acts as a digital personal shopper.
PayPal will also handle merchant routing, payment validation, and fraud protection, ensuring smooth transactions without merchants needing separate OpenAI accounts. Users can pay through linked bank accounts, credit cards, or PayPal balances, with full buyer protection and order tracking.Additionally, PayPal plans to expand the use of OpenAI’s enterprise AI tools internally to accelerate innovation and product development.