PayPal stock soars on OpenAI partnership

[PayPal Headquarters San Jose]
JasonDoiy/iStock Unreleased via Getty Images

PayPal (NASDAQ:PYPL [https://seekingalpha.com/symbol/PYPL]) shares jumped nearly 15% premarket on Tuesday after the fintech firm announced a deal with OpenAI (OPENAI [https://seekingalpha.com/symbol/OPENAI]) to have its digital wallet embedded into ChatGPT.

PayPal will integrate the Agentic Commerce Protocol (ACP) to expand its payments and commerce capabilities within ChatGPT. The partnership will allow ChatGPT users to check out instantly using PayPal, while PayPal will also handle payment processing for merchants using OpenAI’s Instant Checkout feature.

The Agentic Commerce Protocol is a joint initiative between OpenAI and Stripe, who co-own and maintain the open standard. It was designed to enable AI agents and businesses to manage purchases seamlessly.

"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 [https://seekingalpha.com/pr/20281479-paypal-launches-agentic-commerce-services-to-power-ai-driven-shopping]Alex Chriss, President and CEO of PayPal. "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."

For merchants using PayPal, ACP will bring in 2026 the product catalogs of small businesses as well as marquee retail brands across apparel, fashion, beauty, home improvement, and electronics to ChatGPT commerce, via PayPal's ACP server. PayPal will also support OpenAI Instant Checkout through the delegated payments API, managing payment processing for card payments.

The fintech firm also said it is expanding the use of OpenAI’s enterprise AI products for its employees to accelerate product development cycles.

The move positions PayPal (NASDAQ:PYPL [https://seekingalpha.com/symbol/PYPL]) as one of the early partners in OpenAI’s push to expand ChatGPT’s role in e-commerce. The goal is to let ChatGPT’s 700 million-plus weekly users rely on AI to discover and purchase products, much like a personal shopper would.

Last month, OpenAI enabled users to shop from Shopify (SHOP [https://seekingalpha.com/symbol/SHOP]) and Etsy (ETSY [https://seekingalpha.com/symbol/ETSY]) merchants directly through ChatGPT, and just two weeks ago, it announced a similar e-commerce partnership with Walmart.

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