PayPal will integrate with ChatGPT, enabling you to pay for your purchases without leaving the AI

PayPal has announced today its decision to adopt the Agentic Commerce Protocol (ACP) with the objective of offering its payment services within the ChatGPT platform by OpenAI, thereby becoming the first mainstream wallet to become available within the popular AI tool. This strategic collaboration seeks to integrate PayPal’s capabilities in order to facilitate direct transactions within the conversational environment powered by the artificial intelligence of Sam Altman’s company.

“From chat to purchase in just a few taps”

According to the announcement, the integration will allow millions of ChatGPT users to shop online using their PayPal accounts. In this way, PayPal will support payment processing for merchants who implement the OpenAI Instant Checkout functionality. A key aspect of this initiative is the connection between PayPal’s global network of merchants and OpenAI, which will enable “tens of millions of small businesses and large brands” to sell their products directly within ChatGPT.

The president and CEO of PayPal, Alex Chriss, noted that this partnership will enable PayPal to drive commerce experiences that make it easier for users to transition “from chat to purchase in just a few taps”.

What does this all ***** mean?

This Agentic Commerce Protocol is an open standard that OpenAI has developed alongside the payment infrastructure company Stripe, and it is intended to connect AI agents with buyers and merchants. In this way, agents can reason and understand purchase information logically and in an organized manner, as well as interact with merchant systems and their tools. All of this occurs while keeping the customer informed in real time.

Now, let us clarify some of these concepts a bit. 😉

Currently, the Instant Checkout function operates under a model of assisted or semi-agentic purchasing:

• The human asks: “I want a pair of red running shoes for under $100.”
• The agent (AI) searches: ChatGPT displays three options from connected merchants (Etsy, Shopify, etc.).
• The human selects and authorizes: The human chooses the shoes and clicks the “Buy” button.

In this workflow, the selection is made by the user, but the payment and checkout process (entering shipping address, payment method, confirming the purchase) is performed using the ACP structure, without leaving the chat. PayPal’s integration will allow users to use their PayPal wallet during this conversational checkout, avoiding the need to complete forms on an external website.

However, the ACP is designed so that in the future, the process will be fully autonomous:

• The human delegates: “ChatGPT, automatically purchase tickets for that concert as soon as they go on sale.”
• The agent (AI) executes: The AI waits, buys the tickets, and completes the payment with PayPal using credentials delegated by the user.

That is, the integration of PayPal within the ACP ensures that anyone wishing to purchase a product displayed by ChatGPT (the “human form” of selection) will be able to pay using PayPal, since PayPal has adopted the technical standard that governs this conversational payment process. It serves as the gateway for both types of commerce.

Implementation, Timeline, and Availability

The underlying direct purchase feature, Instant Checkout (powered by the ACP), was initially launched in the United States, where it is already available to ChatGPT users (including Plus, Pro, and free plans). At present, the feature is enabled with sellers on Etsy, with plans to expand to merchants on Shopify.

Full integration of PayPal is planned so that by 2026, ACP will enable product catalogs from businesses within PayPal’s network to be incorporated into ChatGPT. This phase will allow millions of products to be discovered and purchased through artificial intelligence.

In terms of geographic scope, although the Instant Checkout feature is currently limited to the United States, progressive global expansion is anticipated. PayPal’s participation in the ACP and its worldwide presence suggest that the payment option will be extended to other key international markets following the initial rollout.

Much More than Payments without Leaving ChatGPT

Users will have access to multiple financing options (bank accounts, available balance, and cards) without leaving the chat, and will additionally benefit from PayPal’s buyer and seller protections.

PayPal will play a crucial role in the payment infrastructure of ChatGPT. On one hand, it will support OpenAI’s Instant Checkout function by utilizing a delegated payments API to manage the processing of those transactions made with credit or debit cards. On the other hand, and for merchants, PayPal will operate as an “ACP server.” This role will enable it to facilitate mass connection of product catalogs from its network and handle all complex technical tasks, such as order routing, payment validation, and transaction orchestration, thereby eliminating the need for each seller to carry out individual technical integration with the platform.

Finally, PayPal reported that its partnership with OpenAI also includes the expansion of its own AI strategy, encompassing the scaling of access to ChatGPT Enterprise for its more than 24,000 employees and the increased direct use of OpenAI’s APIs to accelerate product development and optimize customer experiences.

Image: Gemini