(Reuters) – PayPal () said on Tuesday (28) that it has reached an agreement with OpenAI that will allow ChatGPT users to purchase products using the payment company’s wallet.
The company also raised its profit outlook for the year and announced the first dividend in its 27-year history, signaling confidence in cash generation and long-term profitability.
PayPal said the partnership with PayPal will connect its global network of merchants to ChatGPT, allowing users to sell within the popular generative AI tool.
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AI shopping tools are emerging as the next big change in online retail as they can autonomously search, compare and purchase products for consumers.
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These tools act as digital assistants, understanding user preferences, setting budgets, analyzing reviews and monitoring prices over time.
“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,” PayPal Chief Executive Alex Chriss said in a statement.
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PayPal said it now expects full-year adjusted earnings per share of $5.35 to $5.39, up from $5.15 to $5.30 previously. Analysts were projecting US$5.24, according to estimates compiled by LSEG.
The company’s board of directors approved a quarterly dividend of $0.14 per share, representing a payout rate of 10% of adjusted earnings.
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The company has reshaped its business under Chriss in recent years, prioritizing profitability over aggressive revenue growth.
A pandemic-era favorite, PayPal has endured a downturn as consumers returned to physical stores and spending patterns stabilized, prompting the company to target high-margin businesses and cost-cutting measures.
Payment volumes remained resilient as consumers continued to spend despite inflationary pressures and an uneven economic environment, highlighting the durability of the company’s core business.
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PayPal reported 7% total payment volume growth in the third quarter on a currency-neutral basis to $458.1 billion.
(Reporting by Manya Saini in Bengaluru)
