PayPal to launch digital payments feature inside ChatGPT

PayPal announced a deal with OpenAI to embed its digital wallet in ChatGPT and raised its earnings guidance for 2025, sending shares up about 14% in early New York trading Tuesday.

The agreement will let people pay for items they find through ChatGPT using PayPal. PayPal said shoppers will get a “buy with PayPal” button inside the app, and businesses will be able to list things for sale there.

“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,” chief executive Alex Chriss told CNBC. “It’s a whole new paradigm for shopping,” he said. “It’s hard to imagine that agentic commerce isn’t going to be a big part of the future.”

PayPal will handle the payments work behind the scenes for sellers that already use its services. Individual merchants will not need a separate OpenAI agreement. Shoppers can pay from linked bank accounts, cards, or PayPal balances, and will receive purchase protections, package tracking, and a way to resolve disputes, the company said.

“It’s not just that a transaction can happen,” Chriss said. “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.”

The company also plans to expand use of OpenAI’s enterprise tools for employees to help speed up product development, he said.

Alongside the partnership, PayPal lifted its full-year adjusted earnings forecast to $5.35 to $5.39 per share, up from $5.15 to $5.30 in July. The company also introduced a quarterly dividend of 14 cents per share.

“This is a stronger company today than we were two years ago,” Chriss said in a statement. “With differentiated competitive advantages, clear strategic direction and building execution momentum, we believe we are exceptionally well-placed to win into the future.”

Third-quarter revenue rose 7% to $8.4 billion. Earnings were $1.30 per share, and total payment volume hit $458.1 billion, up 8% year-on-year.

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