PayPal has partnered with Microsoft to integrate its payments technology into Copilot, supporting the rollout of a new feature called Copilot Checkout.
The service will initially debut on Copilot.com in the US, with further deployment planned across other Copilot-enabled channels.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Within this setup, PayPal will handle the display of merchant inventory as well as provide branded checkout, guest checkout and card payment processing.
The companies said the integration is intended to bring together Microsoft’s AI-driven product discovery with PayPal’s commerce and payments infrastructure to deliver “streamlined end-to-end” shopping journeys inside Copilot.
Users will be able to search, evaluate and pay for goods without leaving the Copilot environment.
Merchants’ product catalogues will be made directly purchasable in Copilot through PayPal’s store sync, part of the agentic commerce services PayPal introduced recently.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThese services are positioned as tools to help merchants attract customers and adapt their operations for AI-led commerce.
Copilot is designed to move beyond conventional search by applying artificial intelligence to interpret user context and intent.
Shoppers can view curated, shoppable recommendations and then finalise their transaction using PayPal.
For retailers, Copilot Checkout is being framed as a way to intersect with customers at the point where they are researching, comparing and deciding what to buy, while minimising friction in the purchasing process.
By engaging with users who are already demonstrating strong intent to purchase within a single interface, merchants are expected to broaden their exposure and support higher conversion.
PayPal GM of Small Business and Financial Services Michelle Gill said: “Collaborating with Microsoft marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences.
“By integrating PayPal’s agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers.”
Meanwhile, last year, PayPal unveiled the PayPal World platform, intended to bring together multiple international payment methods and digital wallets into a single network. The goal is to simplify cross-border transfers, online shopping and in-store payments.
