Microsoft partners with PayPal to add AI shopping and payments in Copilot
Microsoft is weaving a new layer into its Copilot experience, letting users move from a product suggestion straight to checkout without leaving the chat. The move follows a broader push to embed commerce directly into AI assistants, turning a simple query into a complete buying cycle. By linking its generative models with PayPal’s transaction network, the tech giant hopes to streamline the path from discovery to payment.
The integration taps into PayPal’s “store sync” capability, a tool the payment firm has positioned as part of its agentic commerce suite—services built around AI‑guided purchasing. For shoppers, the promise is a smoother, more intuitive flow: ask Copilot about a product, get recommendations, and seal the deal with a familiar payment method. For Microsoft, it’s a step toward making its AI platform not just a source of information but a functional marketplace.
The collaboration also signals a deeper alignment between AI‑driven content and the financial infrastructure needed to back it up.
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.
Will shoppers actually use Copilot Checkout? The answer will depend on how seamless the experience feels. Microsoft says the feature lets users browse curated products and pay with PayPal without leaving Copilot, beginning on Copilot.com.
PayPal supplies merchant inventory surfacing, a branded checkout, guest checkout and credit‑card processing. By marrying Microsoft’s AI‑driven discovery with PayPal’s payments infrastructure, the partnership promises an AI‑led shopping journey. Yet it’s still unclear how many merchants will opt into the store sync or how the guest checkout will perform under heavy load.
The integration also raises questions about data sharing between the two platforms. Still, the ability to complete a purchase without switching apps could reduce friction for some users. Whether this convenience translates into measurable sales growth is still unknown.
As both companies roll out the service, user feedback and merchant participation will likely determine its practical impact. Future updates may expand the feature beyond Copilot.com, but the timeline for such extensions has not been disclosed.
Further Reading
Related Reading
Browse all Microsoft news →
AI Tools & Apps Sider 5.0 Adds Wisebase‑Powered Deep Research Agent to Top AI Chrome Extensions
AI Tools & Apps 9% trust AI code alone; 58% see entry tasks cut, 63% see paths, 59% foresee roles
AI Tools & Apps Adobe launches LLM Optimizer to enhance brand visibility in AI chat services
Related Topic Microsoft launches Fara-7B, an agentic Qwen model that solves tasks in ~16 steps
Business & Startups
Related Topic Microsoft retains 32.5% stake in OpenAI as partnership agreement continues
Business & Startups
Common Questions Answered
How does Microsoft’s integration with PayPal enable AI‑driven shopping in Copilot?
Microsoft links its generative AI models to PayPal’s transaction network, allowing users to discover products and complete purchases directly within the Copilot chat interface. The integration uses PayPal’s “store sync” tool to surface merchant inventory and process payments without leaving the conversation.
What role does PayPal’s “store sync” capability play in the Copilot Checkout experience?
Store sync provides real‑time merchant inventory surfacing, a branded checkout page, guest checkout options, and credit‑card processing for Copilot users. This service is part of PayPal’s agentic commerce suite designed to support AI‑led shopping journeys.
When and where will users first be able to try the Copilot Checkout feature?
Microsoft announced that the Copilot Checkout will launch initially on Copilot.com, letting shoppers browse curated products and pay with PayPal without exiting the chat. The rollout aims to demonstrate a seamless end‑to‑end buying cycle within the AI assistant.
What did PayPal’s Michelle Gill say about the partnership with Microsoft?
Michelle Gill, PayPal’s general manager of small business and financial services, said the collaboration marks a step forward in supporting merchants and consumers through AI‑powered shopping experiences. She highlighted that the partnership combines Microsoft’s AI discovery with PayPal’s payments infrastructure to create a unified commerce flow.