PayPal (PYPL) stock soared 15% in pre-market trading on Tuesday. This comes as the payments company reported strong third quarter results and announced a comprehensive partnership with OpenAI to bring instant shopping to ChatGPT.
The partnership will integrate PayPal's payment system and merchant network directly into ChatGPT, allowing users to search for and purchase products within the chatbot. Through this partnership, PayPal will adopt the Agentic Commerce Protocol (ACP) to enable ChatGPT users to checkout using PayPal's wallets, including bank transfers, cards, and balances, while extending buyer protection and post-purchase services.
“Both platforms have hundreds of millions of users, which makes commerce within AI chat feel seamless,” PayPal CEO Alex Chriss said in a statement.
The company's seller base, which includes both global brands and small businesses, will be accessible through ChatGPT starting next year. PayPal handles everything from payment validation to merchant routing behind the scenes, eliminating the need for businesses to build their own ChatGPT integration.
The company said it plans to expand internal use of OpenAI tools, including ChatGPT Enterprise and Codex, to 24,000 employees.
earnings report
Along with the product news, PayPal reported third-quarter revenue of $8.4 billion, up 7% year-over-year, and raised its full-year outlook. Trading margin dollars increased 6% to $3.9 billion, and GAAP earnings per share increased 32% to $1.30.
PayPal also began paying a quarterly dividend for the first time in its history, at $0.14 per share.
The company raised its full-year outlook and expects trading margins, excluding interest on customer balances, to increase by 6% to 7% in 2025.
PYPL stock rose above $80, its highest level since February.
