PayPal has enhanced PayPal Honey, introducing new features to improve the AI-driven shopping experience for consumers.

The updated tool now helps shoppers who use AI for product research by allowing them to compare items across different stores and save money. Given that 61% of US adults are utilizing AI tools for online shopping and 46% view AI positively, PayPal Honey is designed to provide additional safety and value to customers.

New functionalities in PayPal Honey

Upon asking about products, the PayPal Honey extension displays suggested items with real-time pricing information, merchant options, and exclusive deals. These updates address some of the challenges associated with AI shopping, where despite increased traffic from AI to retail sites, conversion rates are lower than traditional methods.

Currently, AI experiences are mostly focused on answering queries rather than facilitating actual purchases due to their lack of integration into shopping platforms. PayPal Honey aims to bridge this gap by providing a detailed product catalogue covering millions of items that can be directly linked to live merchants, current prices, and cashback offers.

PayPal claims that Honey is moving beyond being just a coupon finder to becoming a comprehensive commerce intelligence platform. It can detect when AI recommendations overlook major retailers and automatically highlight deals that could provide better value. Furthermore, the extension provides intelligent shopping suggestions, such as price comparisons and tailored offers based on user behavior, which could drive more traffic to merchants and increase sales through personalized promotions.

This initiative aligns with PayPal’s broader goal of connecting consumers with sellers in a way that enhances AI-driven product discovery and commerce integration. The new features will be free for both new and existing PayPal Honey users in the US, ready to support the upcoming Black Friday and holiday shopping season.