PayPal, OpenAI sign ChatGPT payments deal

PayPal The company told CNBC exclusively that it has signed a deal with OpenAI to embed its digital wallet into ChatGPT, enabling users to pay for items found through the leading consumer AI tool.

The company’s shares rose as much as 14% in premarket trading on the news.

The deal signed over the weekend means that starting next year, both sides of the PayPal ecosystem will be able to connect to ChatGPT: PayPal users can buy products through the AI ​​platform, and sellers can sell on the platform, with their inventory listed there, according to PayPal CEO Alex Chriss.

“We now have hundreds of millions of loyal PayPal wallet holders who can click the ‘Buy with PayPal button’ on ChatGPT and have a secure payment experience,” Chriss said in an interview.

This move makes PayPal an early part of OpenAI efforts Expanding the use of ChatGPT in e-commerce. The idea is that its more than 700 million weekly users can rely on AI to help them find items, similar to people doing personal shopping. Last month, OpenAI said its users could purchase it at: Shopify And Etsy merchants and announced an e-commerce deal two weeks ago Walmart.

“This is a whole new paradigm for shopping,” Chriss said. “It’s hard to imagine that agency trading won’t be a big part of the future.”

PayPal is trying to position itself as the payment backbone for the upcoming era of AI shopping and has announced: latest deals with Google and artificial intelligence firm Perplexity. Fintech company also announced the third quarter results He published a post on Tuesday release Following CNBC’s report on the OpenAI deal.

The company will also manage merchant routing, payment verification and other behind-the-scenes aspects of the payment process for PayPal merchants on ChatGPT, so individual merchants will not need to sign up with OpenAI, the firm said.

Chriss suggested that both consumers and merchants are verified by the fintech firm, reducing the risk of fraud for both groups. Users can withdraw funds from linked bank accounts, credit cards or stored balances to pay for purchases and benefit from protection, package tracking and dispute resolution.

“This isn’t just about one transaction taking place,” Chriss said. “This is a trusted group of merchants, PayPal’s world’s largest merchant network, verified by the largest set of verified consumers in a consumer wallet.”

PayPal also said its employees are expanding use of OpenAI’s enterprise AI products in an effort to speed up product cycles.