PayPal has announced a partnership with Microsoft to support the launch of Copilot Checkout within Copilot, allowing users to discover products, make decisions and complete payments without leaving the Copilot experience.
The service will launch on Copilot.com, with plans to expand to other Copilot-enabled channels.
Under the integration, PayPal will enable merchant inventory surfacing, branded checkout, guest checkout and credit card payments.
Merchants’ product catalogues will become directly purchasable through PayPal’s store sync, part of its recently launched agentic commerce services.
The collaboration brings together Microsoft’s AI-driven product discovery with PayPal’s payments infrastructure to support end-to-end shopping journeys.
Copilot uses AI to factor context and intent into shopping, presenting curated, shoppable results that users can complete using PayPal.
“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.
“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 partnership is intended to reduce friction between discovery and purchase.
“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 merchants, Copilot Checkout offers access to customers already researching and comparing products within a single interface.
According to the companies, Copilot-led journeys result in higher purchase rates compared with sessions without Copilot.
PayPal will also extend its buyer and seller protections to eligible transactions completed through Copilot Checkout.
Featured image credit: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik
