PayPal has struck a deal with OpenAI to embed its digital wallet into ChatGPT, allowing users to pay for items discovered through the AI platform.
The fintech company confirmed the agreement exclusively to CNBC, noting that the partnership positions PayPal as a key player in the emerging era of AI-powered e-commerce.
The deal, finalised over the weekend, will enable PayPal users and merchants to connect directly with ChatGPT starting next year.
Consumers can purchase products through the AI interface, while merchants can list their inventory for sale on the 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.
Backstory
Last month, OpenAI rolled out a new feature in ChatGPT called Instant Checkout, which lets users in the United States search for products and pay for them directly within the chat interface.
The launch begins with listings from Etsy and plans to include merchants on Shopify. Under the hood is a new standard called the Agentic Commerce Protocol, developed with payment‑processor Stripe, and made open‑source to allow broader integration.
The system handles the full flow: find, select, confirm payment and shipping all within the chat window and the merchant remains responsible for fulfilment and support. Rankings of product results are said to be based purely on relevance, not favouring Instant Checkout‑enabled items.
The move aligns with OpenAI’s ongoing efforts to expand ChatGPT’s use in e-commerce. With over 700 million weekly users, the platform can now function like a personal shopping assistant, helping users find and purchase items.
Merchants and Payment Processing
Under the agreement, PayPal will handle merchant routing, payment validation, and other backend payment processes, eliminating the need for individual sellers to register separately with OpenAI. The fintech firm emphasised the verification of both consumers and merchants, reducing the risk of fraud.
“It’s not just that a transaction can happen, 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 said.
Users will be able to pay using linked bank accounts, credit cards, or stored balances. Additional benefits include transaction protections, package tracking, and dispute resolution.
- The partnership signals PayPal’s intent to become the backbone of AI-powered commerce. The company has also expanded the use of OpenAI’s enterprise AI tools internally to accelerate product development cycles.
- With this collaboration, PayPal positions itself at the forefront of AI-driven e-commerce, combining its extensive merchant network with ChatGPT’s growing influence as a digital shopping assistant. The partnership reflects the evolving landscape of payments and the increasing role of AI in everyday consumer transactions.
