PayPal Holdings Inc. (NASDAQ:PYPL) jumped 13.5% on Tuesday in pre-market trading after announcing an agreement with OpenAI to embed its payments wallet directly into ChatGPT.
PayPal Becomes ChatGPT's First Payments Wallet
The deal makes PayPal the first digital wallet to operate natively inside ChatGPT.
Starting next year, both buyers and sellers will be able to complete transactions directly through the AI platform, according to CNBC.
PayPal CEO Alex Chriss said the integration will allow users to "click the Buy with PayPal button in ChatGPT" for a secure, verified checkout experience.
He added that "hundreds of millions of loyal PayPal wallet holders" will have access to the feature, which includes protections such as package tracking and dispute resolution.
OpenAI will use PayPal's infrastructure to power its Instant Checkout experience under the newly introduced Agentic Commerce Protocol (ACP).
This setup allows merchants to sell inside ChatGPT without requiring direct integrations, enabling PayPal to handle merchant routing and payment validation behind the scenes.
ChatGPT's E-Commerce Push Accelerates
The move positions PayPal as a core payments partner for OpenAI's expanding e-commerce ecosystem.
ChatGPT already lists products from Shopify and Etsy merchants and recently announced a similar integration with Walmart.
Chriss described the collaboration as "a whole new paradigm for shopping," highlighting how agentic AI is set to transform digital commerce.
OpenAI said the agreement will connect "tens of millions" of PayPal merchants to ChatGPT, allowing products from small businesses and global brands to be discovered and purchased in a few taps.
The platform's 700 million weekly users can now search, shop, and check out without leaving the chat window.
AI Commerce Meets Trusted Payments
PayPal said it will support a range of funding options — including bank accounts, stored balances, and linked cards — within ChatGPT.
The company emphasized that all participating consumers and merchants are verified through PayPal's existing compliance systems, reducing fraud risk across the network.
Chriss told CNBC that the goal is to merge PayPal's "trusted merchant base" with ChatGPT's user reach to make agentic commerce mainstream.
Under the partnership, PayPal is also expanding its internal use of OpenAI's enterprise products.
Its 24,000 employees will gain access to ChatGPT Enterprise and Codex to speed up product development and improve workflow efficiency.
PayPal's $80 Test Is Here
PayPal Stock Price Dynamics (Source: TradingView)
PYPL trades sharply higher at $79.72, up 13.5%, in its pre-market session as of Tuesday as investors cheer the OpenAI payments integration news.
Stock is consolidating inside a large symmetrical triangle, with price holding near $70 after a rebound from $67 support.
The price tests heavy resistance between $71 and $73, where the 100- and 200-day EMAs stack.
The RSI reads 52, showing neutral momentum and tying direction to a breakout.
A daily close above $73 would unlock upside toward $78–$80, while failure to hold $67 risks a slide back to $64.
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