PayPal goes all-in on agentic commerce

PayPal and Mastercard just formed an agreement to integrate Mastercard Agent Pay, the card company's agentic payments platform, into the PayPal wallet, which will allow AI agents to complete transactions on behalf of PayPal users.

And in a related development, PayPal announced it is adopting the Agentic Commerce Protocol (ACP) to expand payments and commerce in ChatGTP.

ACP is an open standard and interaction model for enabling AI agents to complete purchases, securely, on behalf of users. It was developed by OpenAI (the research and development company behind ChatGTP) and Stripe. ACP acts like a rulebook or handshake that makes it possible for AI agents and businesses to understand each other, and streamlines the shopping experience.

No need for complex technical requirements

Mastercard Agent Pay aims to generate personalized payment experiences for consumers and merchants. "As AI agents increasingly play a role in commerce on behalf of users, it is critical that merchants and small businesses also understand, trust and support these payments," Mastercard said in a statement when breaking news of partnership. Merchants accepting PayPal can now participate in AI-driven commerce without complex technical requirements, it added.

The partnership with PayPal will enable cardholders to access their credentials securely via PayPal checkout wherever PayPal is accepted on an agent platform or agentic chat experience, without having to meet complex technical requirements.

Mastercard provided the example of a shopper who wants to purchase running shows and asks an AI agent to search for merchants and suggest tailored options. The shopper selects their preferred pair from those provided, which in the example given is available from a PayPal merchant. The shopper then asks the agent to handle checkout.

The agent knowing the shopper uses PayPal and recognizing that the merchant accepts PayPal, asks if they want to checkout with PayPal. The shopper then verifies their identity to validate and complete the purchase.

"PayPal is committed to enabling innovative commerce experiences," said Michelle Gill, executive vice president and general manager for small business and financial services at PayPal. "By bringing together Mastercard's Agent Pay with our wallet, we are empowering merchants and consumers to participate in agentic commerce with trust and flexibility at the center."

"Mastercard doesn't just enable payments – we're relentlessly pushing the boundaries of what's possible in commerce," said Sherri Haymond, co-president of global partnerships at Mastercard. "Our work with PayPal is driving a catalyst for agentic innovation at global scale, empowering merchants and consumers to transact with confidence, speed and trust. Together, we're building the future of commerce where seamless, secure payments are the launchpad for new experiences and bold ideas." Hammond

PayPal's global merchant network meets ChatGTP

Just days after heralding the partnership with Mastercard, PayPal said it was working with ChatGTP to connect businesses and consumers via the AI engine using the ACP standard.

The upshot: millions of ChatGTP users can checkout instantly using PayPal, and PayPal will support payments processing for merchants leveraging OpenAI Instant Checkout. PayPal said it also will connect its global merchant network to OpenAI, creating a platform for tens of millions of small businesses and the largest brands in the world to sell within ChatGTP.

The partnership will support multiple funding options, including bank, PayPal balance and cards. It also will support PayPal's buyer and seller protections, and post-purchase services like tracking and dispute resolution.

"Hundreds of millions of people turn to ChatGTP each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," said Alex Chriss, president and CEO of PayPal. "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."

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