PayPal Shares Surge 15% After Announcing OpenAI Wallet Integration

PayPal (PYPL, Financials) stock rose more than 15% in premarket trade Tuesday after the firm announced it would integrate its payments system directly into ChatGPT, letting customers to shop and pay within the AI platform.

One of OpenAI's first large financial alliances, the deal was closed over the weekend, according to CNBC. Next year, ChatGPT consumers can buy through PayPal and merchants can sell directly.

PayPal CEO Alex Chriss said the partnership will allow small and major brands to reach ChatGPT customers. He stated ChatGPT will enable tens of millions of merchants to sell. Company will manage payment routing, verification, and transaction processing behind the scenes.

PayPal will provide its 24,000 employees access to ChatGPT's enterprise solutions as part of its AI strategy.

PayPal's third-quarter profits were stronger than predicted. Adjusted earnings above Wall Street expectations at $1.34 per share and $8.42 billion in revenue. Transaction margin dollars, which measure transaction profit, rose nearly 6% to $3.87 billion.

The new agreement puts PayPal at the center of agentic AI shopping, where digital assistants discover, pay, and fulfill. Investors welcomed the move as an indication that the company is seeking fresh growth opportunities following years of competition from Apple Pay and Stripe.