PayPal’s stock surged by as much as 13% after Cryptopolitan reported that the company will link its wallet directly to ChatGPT in a new agreement with OpenAI.
The deal gives PayPal users the ability to pay for items they find through ChatGPT using a “Buy with PayPal” button, and allows merchants to list their products inside the chatbot interface.
The company made the announcement right after its third‑quarter results, with CEO Alex Chriss stating that PayPal is positioning itself for what he called an agentic commerce future driven by AI.
PayPal said revenue for the quarter grew by 7% year over year to $8.4 billion, transaction margin dollars came in at $3.9 billion, up 6%, and excluding interest on customer balances, the figure rose 7% to $3.6 billion.
GAAP operating income increased 9% to $1.5 billion, while non‑GAAP operating income rose 6% to $1.6 billion. GAAP operating margin reached 18.1%, up 33 basis points. Non‑GAAP operating margin stood at 18.6%, down 19 basis points. GAAP earnings per share were $1.30, up 32%, while non‑GAAP earnings per share were $1.34, up 12% from a year earlier.
PayPal sees surge in performance across accounts, transactions, and cash flow
Total payment volume reached $458.1 billion, rising 8% from the prior year. Payment transactions totaled 6.3 billion for the quarter, down 5%, though the company noted that when excluding payment service provider‑linked transactions, payment transactions increased 7%.
Payment transactions per active account were 57.6 over the trailing twelve‑month period, falling 6%. Excluding PSP activity, that figure increased 5%. Active accounts reached 438 million, up 1% from the previous year and higher by 0.3 million compared to the previous quarter.
The company generated $2.0 billion in operating cash flow and reported $1.7 billion in free cash flow.Adjusted free cash flow reached $2.3 billion.PayPal ended the quarter holding $14.4 billion in cash, cash equivalents, and investments, with total debt of $11.4 billion.
The company returned $1.5 billion to shareholders by repurchasing approximately 21 million shares during the quarter. Over the last twelve months, PayPal repurchased around 78 million shares for a total of $5.7 billion.
PayPal also announced the launch of a quarterly dividend. The Board approved a dividend of $0.14 per share, payable on December 10 to shareholders of record on November 19.
The company said the dividend reflects a targeted payout ratio of 10% of non‑GAAP net income, and it expects to pay dividends quarterly subject to market conditions and Board approval.
PayPal links its wallet to ChatGPT to embed payments into consumer AI
The company confirmed it finalized the ChatGPT wallet integration deal over the weekend.
Alex Chriss said, “We’ve got hundreds of millions of loyal PayPal wallet holders who now will be able to click the ‘Buy with PayPal button’ on ChatGPT and have a safe and secure checkout experience.”
He added that merchants would be able to list and sell goods directly through ChatGPT.
Chriss also said, “It’s a whole new paradigm for shopping. It’s hard to imagine that agentic commerce isn’t going to be a big part of the future.” PayPal has also inked partnerships with Google and Perplexity recently.
The company said the integration will allow PayPal to operate as a payments layer inside AI‑assisted shopping systems. The announcement came on the same day PayPal issued its third‑quarter results, after which it published a release confirming the OpenAI agreement.
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Source: https://www.cryptopolitan.com/paypal-posts-q3-beats-and-surges-13/
