Paypal has announced that on Tuesday it will be implementing the protocol along of OpenAI’s “Instant Checkout” feature to allow users to pay for purchases through ChatGPT beginning in 2026.
Paypal has adopted its Agentic Commerce Protocol (ACP) which is an open-source specification created by OpenAI that allows merchants to offer their products within AI apps, thus allowing customers to shop with AI agents. Additionally, it is also launching the “Instant Checkout” feature was launched in September. It allows users to verify their order as well as shipping and payment information, and make purchases without having to leave ChatGPT.
Customers can make use of their Paypal wallets for payment and, as the company claimed, will allow it to offer buyer and seller protection in addition to dispute resolution. The company also offers the capability to manage card transactions through ChatGPT with a separate payments API.
Then, in the next year, retailers who use Paypal products will see their offerings listed through ChatGPT beginning with categories such as apparel fashion beauty, home improvement and electronic. Merchants will not have to create integrations, because PayPal will manage payments and merchant routing in the background.
The company has announced it’s also creating an agentic commerce platform that will let merchants display their catalogs in AI applications, accept payments from various AI software, as well also gain information about the behavior of consumers.
PayPal is trying to make itself a payment partner in various online shopping experiences powered by AI in particular, as people increasingly utilize AI apps for their day-to-day tasks. In May the company collaborated together with Perplexity to allow customers to make purchases using their AI search engine and, in September, Paypal said it was using the Google Agent Payments Protocol to integrate its services with other Google services.
PayPal stated that, aside from the commerce partnership the company will also provide accessibility to ChatGPT to all its employees as well as permitting the engineers of its company to greater use of the OpenAI coding tools, Codex.
“Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop,” Alex Chriss, the president and CEO of PayPal announced in an announcement. “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,” said Chriss.
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FAQ’s
1. What does the PayPal and OpenAI partnership mean for ChatGPT users?
The partnership allows ChatGPT users to shop and pay directly within the chat interface using PayPal. Through the Agentic Commerce Protocol and Instant Checkout feature, users can browse products, confirm details, and complete purchases without leaving ChatGPT.
2. When will ChatGPT users be able to make payments through PayPal?
PayPal’s integration with ChatGPT is expected to roll out in 2026. Once live, users will be able to use their PayPal wallets for secure transactions, manage cards, and enjoy buyer and seller protection while shopping through ChatGPT.
3. How will businesses and merchants benefit from this collaboration?
Merchants using PayPal will automatically have their products listed inside ChatGPT under categories like fashion, beauty, electronics, and home improvement. They won’t need to build special integrations, as PayPal will handle the payment processing and merchant routing seamlessly in the background.
