In a significant move towards agentic commerce, PayPal has entered into an agreement with OpenAI to integrate its digital wallet into ChatGPT, allowing users to make purchases directly through the AI tool.

Launch Details

The initiative is scheduled for release in the coming year and will cover the entire shopping journey—from discovery of products to final checkout. Merchants will have their products made available on ChatGPT, enabling customers to find suitable items using AI-powered insights before completing purchases.

User Experience

Shoppers can use PayPal for transactions or choose other payment methods like bank accounts and credit cards. Additional benefits include fraud protection, package tracking, and dispute resolution.

For Sellers

The process is seamless; sellers do not need to build integrations or interact with OpenAI directly as PayPal handles all payment-related functions behind the scenes.

Comparison with Previous Efforts

While OpenAI previously integrated a payments checkout system into ChatGPT, directing users to merchant sites for final purchase, PayPal’s offering streamlines this process by allowing purchases directly within the AI tool.

Technology and Partnership

PayPal utilizes the Agentic Commerce Protocol (ACP), an open-source specification developed in collaboration with Stripe. ACP enables merchants to make their products accessible via AI apps, enhancing the overall shopping experience for consumers.

This integration ensures product catalogs from both small businesses and major retail brands are available to PayPal shoppers, promoting a diverse marketplace within ChatGPT.