PayPal Wallet to Be Embedded in ChatGPT for In-Chat Purchases

PayPal and OpenAI announced on Tuesday that PayPal’s digital wallet will be embedded in ChatGPT beginning next year, allowing users to purchase items directly within the chatbot and enabling merchants to list products for sale on the platform. The announcement sent PayPal shares sharply higher in early New York trading, rising about 14 percent, the company said.

Under the arrangement, ChatGPT users will see a Buy with PayPal button inside the app and can complete checkout using linked bank accounts, cards, or PayPal balances. PayPal said it will manage the payments work behind the scenes for sellers that already use its services, handling merchant routing, payment validation and transaction orchestration so individual merchants will not need separate agreements with OpenAI. Buyers will receive access to PayPal’s purchase protections, order tracking and dispute-resolution services.

The partnership is enabled by OpenAI’s Agentic Commerce Protocol, an open source specification that lets AI agents make purchases on behalf of users. PayPal said it will adopt the protocol and provide an ACP server to onboard global product catalogs and enable merchants to present listings and accept...