Key Stats for PayPal Stock
- Price Change for $PYPL stock: 9%
- Current Share Price as of Oct. 27: $70
- 52-Week High: $94
- $PYPL Stock Price Target: $82
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What Happened?
PayPal (PYPL) stock is up more than 9% in pre-market trading today after the company announced a major partnership with OpenAI.
Starting next year, PayPal’s digital wallet will be embedded directly into ChatGPT, allowing users to purchase items they find through the AI platform.
The deal was sealed over the weekend and connects both sides of PayPal’s ecosystem to ChatGPT. PayPal’s hundreds of millions of users can buy things through ChatGPT, and merchants using PayPal can sell their inventory on the platform.
CEO Alex Chriss said users will be able to click a “Buy with PayPal” button on ChatGPT for a secure checkout experience.
This makes PayPal an early player in OpenAI’s push to expand ChatGPT into e-commerce. The AI company’s 700 million weekly users can now lean on artificial intelligence to help them find products, similar to having a personal shopper.
OpenAI has already announced similar deals with Shopify, Etsy, and Walmart in recent weeks.
“It’s a whole new paradigm for shopping,” Chriss said. “It’s hard to imagine that agentic commerce isn’t going to be a big part of the future.”
PayPal is trying to position itself as the payments backbone for AI-powered shopping. The company recently struck similar deals with Google and AI search engine Perplexity, and the OpenAI partnership adds another huge platform to that list.
As per the agreement, PayPal will handle merchant routing, payment validation, and other technical aspects of payment processing for sellers on ChatGPT.
Individual merchants don’t need to sign up with OpenAI separately. PayPal also said it’s expanding its use of OpenAI’s enterprise AI products internally to speed up product development.
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What the Market Is Telling Us About PayPal Stock
The 9% jump in PayPal stock shows investors believe AI-powered shopping could be a major growth driver. Clearly, the market sees value in PayPal becoming the default payment option for AI shopping experiences.
The partnership with OpenAI is a big deal for several reasons. First, ChatGPT has a massive reach with over 700 million weekly users. That’s an enormous audience that PayPal can tap into.
Second, these users are actively searching for products and getting recommendations from AI. They’re already in a buying mindset, which means higher conversion rates than traditional shopping.
Third, PayPal is getting in early. AI commerce is still in its infancy, but it’s growing fast. By embedding itself into ChatGPT now, PayPal positions itself as the go-to payment method before other competitors can establish themselves.
For PayPal stock, this addresses a key investor concern, given the fintech giant has been working to move beyond its legacy PayPal button on websites and become more relevant for the next generation of commerce.
CEO Chriss emphasized that PayPal brings verified merchants and verified consumers to the table, reducing fraud risk for everyone.
That trust factor matters a lot in AI commerce, where users might be discovering new brands they’ve never heard of before.
PayPal’s 25 years of payment experience and its massive merchant network give it credibility that newer payment providers can’t match.
Last month, PayPal announced PayPal Ads Manager, which lets small businesses turn their websites into mini advertising networks. The product launches early next year and could open up a high-margin revenue stream.
PayPal also partnered with Bilt to bring rent and mortgage payments into Venmo, expanding beyond peer-to-peer transfers.
Additionally, PayPal sold $7 billion in buy now, pay later receivables to Blue Owl Capital in September. This helps the company operate with a lighter balance sheet while still offering BNPL services.
And it’s pushing hard on BNPL this holiday season, offering 5% cash back to customers who use the service.
All these initiatives show a company trying to reinvent itself for the future. PayPal stock has responded well to that transformation over the past year.
The OpenAI deal is the cherry on top—a high-profile partnership that validates the company’s strategy of positioning itself at the center of AI commerce.
The OpenAI partnership puts PayPal in pole position as AI shopping takes off. If this new commerce paradigm grows as fast as expected, PayPal could see significant upside from being embedded in the platforms where millions of people discover and buy products.
The market’s reaction suggests investors are optimistic about PayPal’s chances. A 9% single-day gain is rare for a company with a $90 billion market cap.
It shows real excitement about the potential of AI commerce and PayPal’s role in it. Whether that excitement is justified will depend on how quickly users adopt AI shopping and whether PayPal can convert that activity into strong revenue growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
