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 14% in premarket trading, showing strong investor excitement.
PayPal told CNBC it has signed a deal with OpenAI to embed its digital wallet inside ChatGPT, so users can pay for items they find through the AI tool. Under this deal, both buyers and sellers can use ChatGPT — PayPal users can purchase products, and PayPal merchants can list and sell their items directly inside ChatGPT. CEO Alex Chriss said, “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.”
CEO Chriss called this shift “a whole new paradigm for shopping,” saying AI shopping (or “agentic commerce”) will be a big part of the future. PayPal aims to become the main payments backbone for AI shopping, and it has also signed new deals with Google and Perplexity AI for similar purposes. PayPal will handle merchant routing, payment validation, and back-end processing for sellers using ChatGPT, so individual merchants don’t need to sign separate deals with OpenAI.
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.”
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.
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 told CNBC it has signed a deal with OpenAI to embed its digital wallet inside ChatGPT, so users can pay for items they find through the AI tool. Under this deal, both buyers and sellers can use ChatGPT — PayPal users can purchase products, and PayPal merchants can list and sell their items directly inside ChatGPT. CEO Alex Chriss said, “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.”
AI shopping and new e-commerce trend
The move makes PayPal one of the first companies to join OpenAI’s push into AI-powered e-commerce, where ChatGPT helps users shop like a personal assistant, as per the report by CNBC. ChatGPT has over 700 million weekly users, and OpenAI recently allowed shopping through Shopify, Etsy, and also partnered with Walmart, showing a big expansion into online retail.CEO Chriss called this shift “a whole new paradigm for shopping,” saying AI shopping (or “agentic commerce”) will be a big part of the future. PayPal aims to become the main payments backbone for AI shopping, and it has also signed new deals with Google and Perplexity AI for similar purposes. PayPal will handle merchant routing, payment validation, and back-end processing for sellers using ChatGPT, so individual merchants don’t need to sign separate deals with OpenAI.
PayPal’s focus on safe payments and growth
Chriss said PayPal’s system is safer because both buyers and merchants are verified, which helps reduce fraud risks. Users will be able to pay using linked bank accounts, credit cards, or PayPal balances, and will get protections like tracking and dispute resolution. According to the report by CNBC, Chriss added, “It’s not just that a transaction can happen — it’s that this is a trusted set of merchants and verified consumers in the largest merchant network in the world.” PayPal is also using OpenAI’s enterprise AI tools internally to help its employees speed up product development cycles and boost innovation.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.”
Raises forecast and declares first dividend
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.CEO’s focus on profit and stability
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.
FAQs
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.
