PayPal Adopts OpenAI's Agentic Commerce Protocol

As the world becomes increasingly reliant on AI-powered tools, the lines between shopping and conversation are blurring. This move reflects broader industry trends, where companies like PayPal are working to insert themselves as key players in the emerging agentic commerce landscape. In a significant development, PayPal has announced that it will adopt the Agentic Commerce Protocol (ACP), an open-source specification developed by OpenAI, to enable users to pay for their shopping directly within ChatGPT starting in 2026.

The partnership between PayPal and OpenAI is a strategic move to capitalize on the growing popularity of AI-driven shopping experiences. With hundreds of millions of people using ChatGPT each week, and over 400 million using PayPal to shop, the potential for seamless payments and commerce experiences is vast. As Alex Chriss, president and CEO of PayPal, noted, “By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases.”

The Agentic Commerce Protocol allows merchants to make their products available within AI apps, enabling users to shop using AI agents. OpenAI’s “Instant Checkout” feature, launched in September, lets users confirm their order, shipping, and payment details, and complete purchases without leaving ChatGPT. PayPal will provide technology to handle card payments from within ChatGPT using a separate payments API, and its wallet can be used for checkout, offering buyer and seller protection, as well as dispute resolution.

This development is part of a larger effort by PayPal to establish itself as a leading payments partner in the AI-enabled shopping space. The company has already partnered with Perplexity to power agentic commerce, and adopted Google’s Agent Payments Protocol to integrate its products within various Google products. As the e-commerce landscape continues to evolve, PayPal’s strategic partnerships and investments in AI-powered payments will be crucial in shaping the future of online shopping.

Source: Official Link