PayPal Joins Forces with OpenAI to Become ChatGPT’s First Integrated Digital Payments Wallet

In a major move toward AI-driven e-commerce, PayPal has partnered with OpenAI to integrate its digital wallet directly into ChatGPT. This means that users will soon be able to buy products and make payments through ChatGPT using PayPal, creating a seamless and secure shopping experience inside the AI platform.

The announcement led to a 4% rise in PayPal’s shares, showing investor confidence in the company’s AI strategy.

How the Partnership Works?

Starting next year, both PayPal users and merchants will be able to connect to ChatGPT’s e-commerce ecosystem. Shoppers can click “Buy with PayPal” within ChatGPT to purchase items, while merchants will be able to list and sell their products directly on the platform.

PayPal CEO Alex Chriss explained that this collaboration allows hundreds of millions of PayPal wallet holders to make purchases safely, using the same protections and features they already trust — such as secure checkout, buyer protection, and easy dispute resolution.

Building the Future of AI-Powered Shopping

This partnership positions PayPal as one of the first companies to join OpenAI’s e-commerce expansion. ChatGPT, which now has over 700 million weekly users, is being redesigned to help people discover and buy products using AI assistance — similar to having a virtual personal shopper.

Last month, OpenAI announced similar partnerships with Shopify, Etsy, and more recently, Walmart, allowing users to browse and purchase items directly through ChatGPT.

Chriss described the concept as “a whole new paradigm for shopping”, predicting that agentic commerce — where AI acts on behalf of the user — will become a key part of the future online retail experience.

PayPal’s Growing Role in AI Commerce

The collaboration with OpenAI is part of PayPal’s larger strategy to become the backbone of payments in the age of AI. Recently, the company also announced partnerships with Google and AI search firm Perplexity to expand its digital ecosystem.

PayPal is using these partnerships to establish itself as a trusted, technology-forward brand ready for the future of AI-driven payments. The company said it will also adopt OpenAI’s enterprise AI tools internally to speed up product development and improve operational efficiency.

Safe, Verified and Convenient Transactions

PayPal emphasized that both merchants and consumers are verified through its platform, minimizing fraud risks. Customers can make payments through linked bank accounts, credit cards, or stored balances, enjoying the same protections and reliability they expect from traditional PayPal transactions.

Chriss highlighted, “It’s not just about making transactions happen — it’s about ensuring they happen safely with verified merchants and consumers.”

Competition and Market Impact

This partnership also strengthens PayPal’s position against competitors like Stripe, which recently launched an Instant Checkout feature with OpenAI, enabling payments for Etsy merchants. Stripe’s wallet service, called Link, currently has 200 million users but lacks some features like fund storage and a mobile app — areas where PayPal has an advantage.

With these innovations, PayPal is moving quickly to secure its place in the future of AI shopping, offering users a complete and trusted payment experience integrated into one of the world’s most popular AI platforms.