In a step forward for agentic commerce, PayPal has signed a deal with OpenAI to embed its digital wallet into ChatGPT, enabling users to pay for items they discover through the AI tool.
Set to launch next year, the offering will encompass the entire shopping experience—from product discovery to checkout. Merchants will be able to make their products discoverable on ChatGPT, while shoppers can use the agentic AI tool to identify suitable items and purchase them on preferred terms. OpenAI has noted that product results will remain organic, not sponsored, and ranked by relevance, meaning shoppers will not necessarily be directed to ChatGPT’s partners.
Consumers will be able to complete purchases through ChatGPT using their PayPal accounts or alternative payment methods such as linked bank accounts and credit cards. PayPal also promises value-added features including fraud protection, package tracking, and dispute resolution.
For sellers, the process will be seamless: merchants will not need to build any integrations or interact directly with OpenAI, as PayPal will handle routing, payments, and all back-office functions.
Building a Payments Process
OpenAI announced earlier this year that it was integrating a payments checkout system into ChatGPT. The collaboration with Spotify enabled users who searched for a product on ChatGPT to view top results with prices, reviews, and links to relevant sites. However, users were still directed to the merchant’s platform to complete their purchase—an extra step that the PayPal offering avoids.
OpenAI’s instant checkout feature, launched in September, lets users confirm their order, shipping, and payment details and complete purchases without leaving ChatGPT. With a single tap, users can buy directly from the search results page.
The Technology Behind It
PayPal will leverage the Agentic Commerce Protocol (ACP), an open-source specification developed by OpenAI in collaboration with Stripe. ACP lets merchants make their products available within AI apps, allowing users to shop via AI agents. The goal of ACP is to create an infrastructure that connects merchants, consumers, and developers, facilitating the integration of AI agents into the shopping experience.
Additionally, the ACP integration will make product catalogs from both small businesses and large retail brands available to PayPal shoppers.
