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What is PayPal's new deal with OpenAI's ChatGPT? Complete details explored

PayPal's latest partnership with OpenAI brings its payment system directly into ChatGPT, allowing users to shop, pay, and resolve disputes within the chatbot while giving merchants new AI-driven tools to showcase and manage their products.
posted by Anisa Nandy
Tuesday 10/28/2025 at 12:00PM EDT
  • Close-up of logo for mobile payments company Paypal on paper, against a light wooden surface, April 21, 2019. (Photo by Smith Collection/Gado/Getty Images)
    Close-up of logo for mobile payments company Paypal on paper, against a light wooden surface, April 21, 2019. (Photo by Smith Collection/Gado/Getty Images)

    On Tuesday, PayPal disclosed its intention to fuse its payment infrastructure with OpenAI's ChatGPT, signalling a leap forward for shopping tools. Starting in 2026, the firm will employ OpenAI's Agentic Commerce Protocol (ACP), an open‑source standard that enables storefronts to interface with AI applications, with the chat service's "Instant Checkout" capability.

    This collaboration will allow ChatGPT users to wrap up a purchase, verify shipping details and process the payment, all without leaving the chat window, providing a snapshot of how AI agents are rapidly reshaping the future of online retail, as reported by CNBC.

    PayPal partners with OpenAI to bring shopping and payments directly into ChatGPT, aiming to make AI-powered checkout faster and simpler

    PayPal has taken a leap in its commerce playbook, striking a fresh partnership with OpenAI that weaves PayPal's payment tools straight into ChatGPT. From one shopper can tap their PayPal wallets to seal purchases inside the chatbot while still enjoying the usual buyer and seller‑protection guarantees and an integrated dispute‑resolution workflow.

    CEO Alex Chriss says the new integration is meant to smooth out the buying experience, letting users "go from chat to checkout in a few taps." He said (via Tech Crunch):

    "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... 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."

    From the start of the year, merchants who rely on PayPal's toolkit will see their merchandise surface automatically in ChatGPT's shopping pane, beginning with categories such as fashion, beauty, home‑improvement and electronics. At the time, PayPal is rolling out an "commerce suite," a framework that lets sellers showcase product catalogs, process payments across a range of AI‑driven platforms and tap into real‑time insights on shopper behavior.

    Keep reading PRIMETIMER for more informative content!

    TOPICS: PayPal, ChatGPT