PayPal has partnered with Microsoft to unveil Copilot Checkout. The feature allows users to discover products and complete purchases within Microsoft’s Copilot experience, the companies said in a statement.
The integration enables shoppers to browse curated products and pay using PayPal without leaving Copilot, starting with Copilot.com. PayPal will provide merchant inventory surfacing, branded checkout, guest checkout and credit card payments.
The partnership combines Microsoft’s AI-driven shopping discovery with PayPal’s payments infrastructure. Shoppers can purchase products through PayPal’s store sync, part of its agentic commerce services designed for AI-led shopping journeys.
“Collaborating with Microsoft marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences,” said Michelle Gill, general manager of small business and financial services at PayPal, in the statement. “By integrating PayPal’s agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers.”
Microsoft said the integration is intended to reduce friction between discovery and purchase, while opening new channels for merchants. “PayPal’s leadership in commerce, payments and trusted relationships with hundreds of millions of consumers and merchants over 25 years make them an ideal partner,” said Nayna Sheth, head of product for agentic payments at Microsoft.
For retailers, Copilot Checkout provides access to high-intent shoppers who research and buy within a single interface.
Ashley Global Retail is among the early adopters. “As one of the first retailers to embrace agentic commerce, we’ve seen firsthand how AI-powered shopping assistants can transform the customer experience,” said Kyle Dorcas, head of product management at Ashley Global Retail.
According to the companies, journeys involving Copilot lead to 53% more purchases within 30 minutes. Consumers can use multiple funding options, including the PayPal wallet, and PayPal’s buyer and seller protections will cover eligible transactions.
PayPal now plans to extend Copilot Checkout to additional devices and channels where Copilot is available. Merchants interested in participating can sign up through PayPal.ai.
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