PayPal Integrates with Microsoft Copilot to Redefine AI-Powered Commerce

PayPal  has announced that they are teaming up with Microsoft to support the launch of Copilot Checkout in Copilot, enabling shoppers to discover, decide, and pay—without ever leaving the Copilot experience. PayPal will power surfacing merchant inventory, branded checkout, guest checkout and credit card payments, starting with Copilot.com.

This integration marks the latest development in AI-powered shopping experiences, combining Microsoft’s intelligent discovery with PayPal’s trusted commerce and payments capabilities to create streamlined end-to-end experiences. Merchants’ product catalogs will seamlessly become purchasable leveraging PayPal’s store sync, a capability of PayPal’s recently launched agentic commerce services,  which are designed to allow merchants to attract customers and future-proof their business in the new era of AI-powered commerce.

“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. Together, we’re unlocking more meaningful, trusted connections across the commerce ecosystem and shaping the future of intelligent shopping.”

– Michelle Gill, GM of Small Business and Financial Services, PayPal 

Copilot goes beyond traditional search, using AI to bring context and intent into the shopping journey. A user can now browse curated, shoppable results—completing their purchase with PayPal.

“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. By integrating PayPal’s commerce expertise into Copilot, we’re enabling a simpler way to move from discovery to purchase while creating new opportunities for merchants and consumers alike.”

– Nayna Sheth, Head of Product for Agentic Payments, Microsoft 

For merchants, Copilot Checkout offers a powerful opportunity to meet customers where they’re already making decisions and reduce friction in the path to purchase. By connecting with high-intent shoppers who are actively researching, comparing, and buying—all within one unified experience—merchants can expand their reach and drive conversion.

“As one of the first retailers to embrace agentic commerce, we’ve seen firsthand how AI-powered shopping assistants can transform the customer experience. Our partnership with PayPal and Microsoft to integrate this technology into Copilot represents the next evolution of furniture retail — empowering customers to discover, design, and purchase home furnishings that reflect their personal style through natural conversation.”

– Kyle Dorcas, Head of Product Management, Ashley Global Retail 

Why it matters:

• PayPal unlocks purchasing across Copilot.com, with plans to extend to more devices and channels where Copilot is available.
• Multiple funding options, including PayPal wallet. Consumers and merchants benefit from PayPal’s seller and buyer protections on eligible transactions¹ in Copilot Checkout—delivering peace of mind and maximum flexibility.
• Journeys with Copilot lead to 53% more purchases within 30 minutes of interaction; with shopping intent present, conversion rates are 194% higher compared to journeys without Copilot.²
• Copilot’s shopping experience is founded on trust and scale, backed by over 192,000 giving shoppers plenty of options to find the right product to fit their unique needs.

PayPal is building these capabilities with an open approach that supports leading agentic protocols and AI platforms, giving merchants flexibility to integrate across multiple AI ecosystems through one single integration. Merchants interested in powering agentic experiences through Copilot Checkout can sign up by visiting PayPal.ai .