AI Meets Payments
The partnership will link PayPal’s vast network of merchants to OpenAI’s generative chatbot, turning conversations into shopping experiences. Users will be able to search, compare, and purchase products without leaving ChatGPT — a model some analysts are calling the beginning of “AI-powered commerce.”
By integrating payments directly into the chatbot, PayPal positions itself at the heart of a retail transformation where artificial intelligence manages much of the buying process, from budgeting to checkout. CEO Alex Chriss described the collaboration as a natural evolution of e-commerce, one that will make digital transactions more intuitive and personal.
“This is about turning a chat into a purchase in seconds,” Chriss said, emphasizing that the company’s Agentic Commerce Protocol will allow seamless, automated payment experiences for both users and merchants.
Confidence Returns to PayPal
The news sparked a sharp 13% rally in premarket trading, as investors cheered not only the deal but also the company’s upgraded profit forecast and its first-ever shareholder dividend.
Alongside the OpenAI deal, PayPal unveiled a stronger financial outlook, reflecting its renewed focus on profitability. Management now expects adjusted earnings per share between $5.35 and $5.39, an improvement from previous guidance and above Wall Street’s expectations.
The company also surprised investors with a historic move: the introduction of a $0.14 quarterly dividend, marking the first payout in PayPal’s 27-year history. Executives said the dividend underscores confidence in the firm’s cash generation and its ability to deliver consistent returns, a message aimed at reassuring shareholders after years of volatility.
Reinvention Under Alex Chriss
Since taking the helm, Chriss has shifted PayPal’s strategy from aggressive expansion to disciplined growth. Once a pandemic-era favorite, the company had struggled with shrinking margins and cooling e-commerce demand. The turnaround plan has focused on streamlining operations, cutting costs, and doubling down on high-margin services.
Those efforts appear to be paying off. In its latest quarter, PayPal reported $458 billion in total payment volume, up 7% year-over-year on a currency-neutral basis — a sign that the platform remains resilient despite inflation and shifting consumer habits.
A New Chapter for Digital Payments
Analysts view the OpenAI partnership as a breakthrough moment for PayPal, one that ties its payment technology to the next generation of consumer interaction. By embedding payments into conversational AI, the company could gain early leadership in an emerging category where AI agents act as shoppers on behalf of users.
The dividend and forecast upgrade, meanwhile, signal a more balanced approach to growth — one that combines innovation with steady shareholder returns. For investors, the message was clear: PayPal is reinventing itself as both an AI commerce pioneer and a mature, cash-generating fintech powerhouse.