Shares of PayPal Holdings Inc. (NASDAQ:PYPL) surged 14.38% in pre-market trading on Tuesday, after the U.S. payments firm announced a deal with OpenAI to integrate its digital wallet into ChatGPT.
PayPal Wallets Enabled on ChatGPT
The agreement, finalized over the weekend, will allow PayPal users to buy items through the AI platform, and merchants can list their inventory and sell on it, starting next year, the company said in a statement.
“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,” said Alex Chriss, CEO of PayPal.
PayPal will manage merchant routing, payment validation, and other processing tasks for PayPal sellers on ChatGPT, eliminating the need for individual merchants to sign up directly with OpenAI.
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AI-Commerce Integrations Deepen
Just last month, OpenAI announced a similar e-commerce deal with Walmart Inc. (NYSE:WMT) and allowed its users to purchase from Shopify Inc. (NYSE:SHOP) and Etsy Inc. (NASDAQ:ETSY) merchants. This move is part of OpenAI’s push towards agentic commerce, where AI tools like ChatGPT not only recommend products but also make purchases on behalf of users.
The development also follows a previous strategic partnership between PayPal and Google (NASDAQ:GOOG) (NASDAQ:GOOGL) to integrate PayPal’s payment solutions with Google’s AI-powered shopping and cloud platforms.
PayPal also said it is expanding the use of OpenAI's enterprise AI products for its employees to speed up product cycles.
Price Action: Shares of the company were up to $80.70 at last check on Tuesday.
Separately, PayPal reported adjusted earnings per share of $1.34 for the third quarter, on revenues of $8.4 billion. Analysts expected the San Jose, California-based company to report earnings of $1.20 per share on revenue of $8.23 billion, according to data from Benzinga Pro.
Benzinga's Edge Rankings place PayPal in the 23rd percentile for momentum and the 53rd percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
