Kristina Roberts
It’s not every day that a company makes history, but PayPal just did. On Tuesday, the online payments giant announced a major new deal with OpenAI — the company behind the famous AI chatbot, ChatGPT. This partnership will allow people using ChatGPT to buy products and make payments directly through PayPal’s digital wallet. The news sent a wave of excitement through the financial world, with PayPal’s shares jumping 13% in early trading.
This move marks a big moment for both companies. For PayPal, it’s a sign that it’s ready to move confidently into the next era of digital shopping — one powered by artificial intelligence. For OpenAI, it’s another step toward making ChatGPT not just a chatbot that talks, but one that can help people shop, pay, and manage tasks with real money involved.
PayPal also shared some other big updates alongside this announcement. The company raised its financial forecast for the year, meaning it expects to make more profit than earlier thought. And for the first time in its 27-year history, PayPal said it will pay a dividend to its shareholders. This move shows the company’s strong belief in its ability to generate steady cash and grow even more in the coming years.
The partnership with OpenAI is expected to connect PayPal’s large network of merchants around the world with ChatGPT users. This means that millions of businesses using PayPal could soon be accessible through ChatGPT, where people might browse and buy products simply by chatting with the AI.
Artificial intelligence is quickly changing the way people shop online. A new kind of shopping — often called AI shopping — is becoming popular. It’s when AI tools help people decide what to buy, compare different options, and even complete purchases automatically. Instead of users spending hours searching websites, these AI tools act like smart assistants. They can understand what someone likes, how much they want to spend, and what kind of product fits their needs.
For example, if you tell ChatGPT you want a new pair of running shoes under $100, it can search different brands, compare prices, read reviews, and finally help you place the order using PayPal — all in one conversation. This kind of smooth experience is what PayPal and OpenAI are aiming for.
PayPal’s CEO, Alex Chriss, explained the idea behind this partnership clearly. He said, “By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases.”
In simple words, this means that users can now talk to ChatGPT about what they want, and within moments, actually buy it using PayPal. It’s like talking to a helpful store assistant who can instantly bring the item to your cart and check you out safely.
This is a big step in what some experts call the “agentic future” — where AI agents can take actions for humans, not just give advice. Instead of just suggesting what to buy, ChatGPT will now be able to help users complete the purchase.
PayPal’s new vision also shows how seriously it’s taking the rise of AI in business. The company isn’t just offering payments anymore — it’s moving toward creating complete digital experiences that mix technology, convenience, and security.
The announcement also gave PayPal’s investors something to smile about. The company raised its expected profit for the year. It now predicts that its adjusted earnings per share (EPS) will be between $5.35 and $5.39. Earlier, PayPal had expected a smaller range — between $5.15 and $5.30. Financial experts who follow PayPal’s performance had estimated an average of $5.24. So this new forecast is higher than what the market expected.
By raising its forecast, PayPal is telling the world that its business is doing better than planned. This confidence, along with the new partnership with OpenAI, sent a strong message to investors that the company is ready to lead in the AI-powered future of online shopping.
And then came another surprise — PayPal announced its first-ever dividend since it was founded 27 years ago. This means that the company will now share a part of its profits with its shareholders. For many investors, this is seen as a major step forward because it shows the company’s financial strength and maturity.
Behind all these numbers and announcements lies something bigger — a clear picture of how technology is reshaping the world of shopping. In the past, people used websites or apps to buy products. Now, they might just use their voice or a chat window to tell an AI assistant what they want. And in the background, PayPal will make sure that the payments happen smoothly and securely.
For OpenAI, this deal also adds a new layer of usefulness to ChatGPT. While millions of people already use ChatGPT for information, writing, or coding help, this update will turn it into a real-world shopping companion. You could ask ChatGPT for gift suggestions, compare gadgets, and complete your purchase — all in one chat.
As this partnership grows, it may open up new opportunities for small businesses as well. Many online sellers who already use PayPal could find a new audience inside ChatGPT. This means that AI won’t just make life easier for shoppers — it could also help sellers reach new customers without extra effort.
The combination of AI and digital payments seems to be the future of online commerce. PayPal and OpenAI are among the first to take this big leap, showing the world how technology and finance can come together to make things faster, easier, and smarter.
Of course, there will still be challenges. Questions about data privacy, security, and user trust will continue to be important as people start using AI to handle payments. But both PayPal and OpenAI are known for building secure and responsible systems, and their collaboration could set new standards for how safe and simple online payments can be.
In the end, PayPal’s deal with OpenAI is more than just a business announcement — it’s a sign of how quickly the future is arriving. A few years ago, talking to a chatbot to buy something would have sounded like science fiction. Today, it’s becoming reality.
With this partnership, PayPal has shown that it’s not afraid to embrace change and innovation. And with ChatGPT getting smarter every day, this could be the start of a new era — one where shopping is as easy as having a friendly chat.
