PayPal to Embed Wallet in ChatGPT, Raises Outlook

PayPal announced it will embed its digital wallet into OpenAI’s ChatGPT using the Agentic Commerce Protocol and Instant Checkout, with consumer availability expected starting in 2026. The integration will let users complete purchases in-chat with bank accounts, cards or PayPal balances and includes PayPal’s buyer protections, order tracking, fraud protection and dispute-resolution, while PayPal will manage merchant routing, payment validation and processing so merchants can list and sell products inside ChatGPT. The deal connects PayPal’s global merchant network to ChatGPT, opening the chatbot as a commerce channel for millions of products and sellers and prompting strong market reactions—PayPal shares jumped in premarket trading with double-digit gains, reported as high as 17%. Concurrent with the announcement, PayPal raised its 2025 adjusted EPS outlook to $5.35–$5.39 and its board approved the company’s first-ever quarterly dividend of $0.14 per share. Executives, including CEO Alex Chriss, said the partnership positions PayPal to capture the shift to AI-enabled e-commerce while continuing to monetize merchant services and Venmo under a profitability-focused strategy.