PayPal Integrates Digital Wallet into ChatGPT for Enhanced Shopping Experience

San Jose, California — PayPal Inc. announced a new agreement with OpenAI to integrate its digital wallet into ChatGPT, enabling users to pay for products found through the AI tool, the company confirmed to CNBC.

Shares of PayPal rose 14% in premarket trading following the news. The deal, finalized over the weekend, is set to start next year, allowing customers to purchase items directly through ChatGPT. Additionally, merchants will list their inventories on the platform, making it easier to reach consumers.

“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 in an interview.

This partnership aims to enhance e-commerce capabilities by leveraging ChatGPT’s massive user base, which surpasses 700 million weekly users. The integration is seen as a crucial step for both companies to tap into the future of AI-driven shopping.

Chriss stated, “It’s hard to imagine that agentic commerce isn’t going to be a big part of the future.” He mentioned that PayPal is positioning itself as a payment backbone for this new shopping paradigm.

PayPal will manage various aspects of payment processing for merchants using ChatGPT, including routing payments and validating transactions, ensuring that individual sellers don’t have to register separately with OpenAI.

He emphasized that both consumers and merchants are verified through PayPal, which enhances trust and reduces the risk of fraud. Users can utilize linked bank accounts, credit cards, or stored balances for transactions, receiving protections like package tracking and dispute resolution.

“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 added. PayPal is also expanding the use of OpenAI products internally to accelerate its product development cycles.