PayPal is partnering with Microsoft to support the launch of Copilot Checkout, a new feature that enables shoppers to discover, decide and pay for items without leaving the genAI chatbot.

PayPal will be responsible for surfacing merchant inventory, branded checkout, guest checkout, and credit card payments.

Merchant product catalogues will become purchasable through PayPal’s store sync, a capability of its recently launched agentic commerce services.

The rollout will begin with Copilot.com, with plans to expand to further devices and channels where Copilot is available.

The new service will feature multiple funding options, including PayPal wallet.

According to Microsoft, journeys with Copilot lead to 53 per cent more purchases within 30 minutes of interaction, with Copilot backed by more than 192,000 shoppers.

“Collaborating with Microsoft marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences," said Michelle Gill, GM of small business and financial services, PayPal. "By integrating PayPal's agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers."

She went on to say that the partnership will unlock "more meaningful, trusted connections" across the commerce ecosystem, helping to shape the "future of intelligent shopping.”

“As one of the first retailers to embrace agentic commerce, we've seen first-hand how AI-powered shopping assistants can transform the customer experience," said Kyle Dorcas, head of product Management at furniture manufacturer Ashley Global Retail. "Our partnership with PayPal and Microsoft to integrate this technology into Copilot represents the next evolution of furniture retail — empowering customers to discover, design, and purchase home furnishings that reflect their personal style through natural conversation.”

---