PayPal Becomes First Payments Wallet Integrated into ChatGPT After OpenAI Deal

TLDR

• PayPal signed a deal with OpenAI to become the first payments wallet embedded in ChatGPT, with the service launching next year.
• PayPal users can buy items through ChatGPT while PayPal merchants can sell products with their inventory listed on the AI platform.
• The agreement includes customer protections like package tracking and dispute resolution for transactions made through ChatGPT.
• PayPal will handle merchant routing, payment validation, and payment processing for sellers on ChatGPT without requiring separate OpenAI sign-ups.
• The deal follows OpenAI’s recent e-commerce partnerships with Shopify, Etsy, and Walmart as it expands ChatGPT’s shopping features.

PayPal announced a new partnership with OpenAI to integrate its digital wallet directly into ChatGPT. The deal was finalized over the weekend and marks PayPal as the first payment service embedded in the AI chatbot.

The integration will launch next year and allows ChatGPT’s 700 million-plus weekly users to purchase items through the platform. PayPal CEO Alex Chriss made the announcement in an exclusive interview with CNBC prior to the company’s quarterly earnings report on Tuesday.

The agreement covers both sides of PayPal’s business ecosystem. PayPal’s hundreds of millions of wallet holders can click a “Buy with PayPal button” on ChatGPT to complete purchases. At the same time, PayPal merchants can list their inventory on the AI platform and sell directly to ChatGPT users.

Payment Processing and Merchant Services

PayPal will manage the technical aspects of transactions on ChatGPT. This includes merchant routing, payment validation, and other behind-the-scenes payment processing functions. Individual merchants who use PayPal won’t need to create separate accounts with OpenAI to sell through ChatGPT.

Chriss emphasized that both consumers and merchants on the platform have been verified by PayPal. This verification process is designed to reduce fraud risk for both buyers and sellers. Users can fund purchases through linked bank accounts, credit cards, or stored PayPal balances.

The service includes standard PayPal customer protections. Buyers will have access to package tracking and dispute resolution services for purchases made through ChatGPT. Chriss described this as providing “a safe and secure checkout experience” for PayPal users on the AI platform.

OpenAI’s E-Commerce Expansion

The PayPal deal fits into OpenAI’s broader strategy to expand ChatGPT’s e-commerce capabilities. Last month, OpenAI enabled users to purchase items from Shopify and Etsy merchants through the chatbot. Two weeks ago, the company announced an e-commerce partnership with Walmart.

PayPal is pursuing similar deals with other tech companies. The payment processor recently announced partnerships with Google and AI search firm Perplexity. These deals aim to position PayPal as a key payment infrastructure provider for AI-powered shopping experiences.

PayPal shares rose more than 10% in premarket trading on Tuesday following the announcement. The company also stated it will expand its use of OpenAI’s enterprise AI products internally to help speed up product development cycles.

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