PayPal is integrating its payment system into ChatGPT. Shares soared 15%

PayPal and OpenAI have signed an agreement to bring PayPal's digital wallet to ChatGPT, the companies told CNBC. Users of the payment system will be able to make purchases through ChatGPT, and sellers will be able to display their goods there starting early next year. Under the partnership, PayPal will be responsible for payment routing, transaction validation and other technical processing for merchants working through ChatGPT so they don't have to separately connect to OpenAI. In addition, PayPal will expand its use of OpenAI's enterprise AI tools to streamline internal processes and accelerate product development.

"We have hundreds of millions of loyal PayPal wallet owners who will now be able to click 'Buy with PayPal' right in ChatGPT and securely checkout," PayPal CEO Alex Kriss told CNBC. He emphasized that all participants in the ecosystem - both buyers and sellers - are verified, which reduces the risk of fraud. Users will be able to pay for purchases from bank accounts, cards or PayPal's internal balance, while maintaining access to the company's standard guarantees: buyer protection, parcel tracking and dispute resolution procedures.

The agreement makes PayPal OpenAI's first e-commerce partner, CNBC notes. The company intends to become the main payment infrastructure for the future era of "agency commerce" - purchases made with the help of AI, the channel adds. Earlier PayPal has already signed similar agreements with Google and AI platform Perplexity.

On the background of the news, PayPal shares soared almost 15.5% to $80.9 in extended trading in the United States on October 28. Since the beginning of the year, the market value of the company has gone down by 17%.

This article was AI-translated and verified by a human editor