OpenAI, PayPal partner to launch first payments wallet on ChatGPT
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The news: OpenAI and PayPal have inked a deal to embed the payments giant’s digital wallet into ChatGPT so that users can pay for items found through the AI tool.
The context: The agreement, set to begin from 2026, will also enable PayPal merchants to sell via the AI platform with their inventory listed on ChatGPT.
The partnership will enable PayPal wallet’s Instant Checkout, including multiple funding options such as bank, balance, and cards, as well as PayPal's buyer and seller protections, and post-purchase services such as tracking and dispute resolution, benefits that consumers value when checking out with PayPal.
PayPal will also support OpenAI Instant Checkout through the delegated payments API, managing payment processing for card payments.
The agreement means PayPal is part of OpenAI’s early moves to broaden the use of ChatGPT for e-commerce. The idea is to enable ChatGPT’s over 700 million weekly users to use AI to help them find items to buy online.
In an interview with CNBC, Alex Chriss, president and CEO of PayPal said that both consumers and merchants have been verified by the fintech firm, reducing the risk of fraud for either group.
The numbers: Shares in PayPal surged over 14% in premarket US trading on Tuesday, before settling at USD77 (8.9% up) at 10:45am GMT (9:45pm AEDT).
What they said: "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 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 for our joint customer bases."
The sources: PayPal press release, CNBC
