PayPal Signs Agreement with OpenAI

PayPal signed an agreement with OpenAI to integrate its digital wallet into ChatGPT, allowing users to pay for products they discover through the leading consumer AI tool, according to information the company shared exclusively with CNBC.

Shares of PayPal jumped about 4% yesterday following the news. 

The agreement, reached over the weekend, means that starting next year, both sides of the PayPal ecosystem will be able to connect with ChatGPT. 

PayPal users will be able to purchase products directly through the AI platform, and merchants will be able to sell on it by listing their inventory, according to PayPal CEO Alex Chriss.

Chriss said in an interview: “We have hundreds of millions of loyal PayPal wallet holders, who will now be able to click a ‘Buy with PayPal’ button on ChatGPT and enjoy a secure checkout experience.”

This move makes PayPal an early part of OpenAI’s efforts to expand ChatGPT’s role in e-commerce.

The company aims to enable over 700 million weekly users to rely on AI to help them find products, much like a human personal shopper.

Last month, OpenAI announced that its users could purchase products from Shopify and Etsy merchants. Two weeks ago, it announced an e-commerce partnership with Walmart.

Chriss said: “This is an entirely new shopping model, it’s hard to imagine a future where AI-powered shopping isn’t a major part of commerce.”

PayPal is seeking to cement its position as a cornerstone of payments in the coming era of AI-assisted shopping, announcing recent deals with Google and AI company Perplexity.