PayPal to power payments inside ChatGPT through OpenAI partnership, becoming first wallet integrated into AI shopping

PayPal is deepening its push into AI commerce with a new partnership with OpenAI that will enable ChatGPT users to complete purchases directly within the chatbot using their PayPal wallets. The integration, announced Tuesday, will roll out in 2026 and marks PayPal’s adoption of OpenAI’s Agentic Commerce Protocol (ACP) — a framework that lets merchants list and sell products across AI-powered platforms.

Under the deal, ChatGPT’s “Instant Checkout” feature will allow users to select products, confirm shipping and payment details, and complete transactions entirely within the chat interface. PayPal will process payments, offering users access to its buyer and seller protection programs, refund options, and post-purchase services like package tracking and dispute resolution. The company will also manage card transactions via a dedicated payments API.

Starting next year, merchants that already use PayPal will have their product catalogs automatically discoverable in ChatGPT, covering sectors such as apparel, beauty, home improvement, and electronics. The setup will not require direct merchant integration; PayPal will handle routing, validation, and compliance behind the scenes.

“Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop,” said PayPal CEO Alex Chriss. “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.”

The collaboration positions PayPal as one of the first major payment processors embedded into ChatGPT’s growing e-commerce ecosystem, which already includes integrations with Shopify, Etsy, and Walmart. The move reflects OpenAI’s broader strategy to turn ChatGPT into a transactional AI platform that connects users with verified merchants through conversational shopping.

For PayPal, the agreement is part of a larger effort to cement itself as the financial infrastructure for AI-driven commerce. The company has recently formed similar partnerships with Google and AI search firm Perplexity, enabling users to make purchases within those environments.

Following the announcement, PayPal shares rose more than 13% in premarket trading, as the company also raised its full-year earnings forecast and declared its first-ever dividend. Chriss told CNBC that the OpenAI deal signals the company’s confidence in its long-term profitability and underscores PayPal’s focus on high-margin growth through AI integrations.

Beyond commerce, PayPal plans to expand its internal use of OpenAI tools. The company will provide ChatGPT Enterprise access to its 24,000 employees and leverage Codex, OpenAI’s coding assistant, to accelerate software development and enhance productivity.