PayPal integrates payments with ChatGPT for direct purchases
- ByStartupStory | October 29, 2025
PayPal has announced a strategic partnership with OpenAI to embed PayPal’s payment platform directly into ChatGPT, allowing users to shop and pay for products within the AI chatbot interface starting next year. This integration marks a significant milestone in the evolution of AI-powered commerce, promising to transform how consumers discover and purchase goods online.
Seamless Checkout Experience within ChatGPT
Building on OpenAI’s recently launched Instant Checkout feature, PayPal integration will enable users to finalize their orders, confirm shipping information, and complete payments without leaving ChatGPT. Customers will pay using their PayPal wallet, benefiting from PayPal’s trusted buyer and seller protections, including dispute resolution, enhanced security, and delivery tracking.
The familiar blue “Pay with PayPal” button will appear within ChatGPT conversations, allowing a smooth, low-friction shopping experience that combines AI-driven product recommendations with secure and convenient checkout.
Unlocking Millions of Merchants Across E-Commerce
The collaboration leverages OpenAI’s Agentic Commerce Protocol (ACP), an open-source standard that enables AI agents to interact with product catalogs and payment gateways of any merchant that accepts PayPal. This means millions of online stores—from global giants like Etsy, Shopify, and Walmart to small independent retailers—can seamlessly reach ChatGPT’s over 800 million weekly active users.
Merchants using PayPal products will automatically be discoverable within ChatGPT’s evolving AI shopping ecosystem without needing additional integration efforts. PayPal will also provide APIs to process credit and debit card transactions directly through the chatbot, expanding payment flexibility further.
A Broader Push Toward AI-Enabled Commerce
This partnership fits into OpenAI’s grander vision of building an “agentic commerce” system where AI agents can autonomously assist users in finding, comparing, and purchasing products across platforms. PayPal’s entry as the first digital wallet integrated into ChatGPT positions it as a key player in this emerging AI commerce paradigm.
PayPal CEO Alex Chriss highlighted, “Hundreds of millions of people use ChatGPT every week for daily tasks, including product discovery, and over 400 million customers use PayPal. Together, we’re enabling seamless shopping experiences from chat to checkout in just a few clicks.”
Future Outlook and Expansion
The integration is set to roll out globally in 2026, initially focusing on categories such as fashion, beauty, home decor, and electronics. Plans are underway to enhance online retailers’ abilities to showcase products in AI applications while gaining insights into consumer behavior across AI platforms.
Beyond commerce, PayPal has embraced AI internally—providing all employees access to ChatGPT for Business and equipping engineers with OpenAI coding tools to boost innovation.
Conclusion
By embedding PayPal payments within ChatGPT, the companies are revolutionizing digital commerce, enabling an AI-powered shopping assistant that is more intuitive, secure, and frictionless. As consumers increasingly turn to AI for everyday tasks, this partnership promises to redefine the future of online shopping—making ChatGPT not just a source of information but a direct gateway to purchase.
Follow Startup Story
Related Posts
