Perplexity Partners with PayPal to Launch In-Chat Shopping as AI E-Commerce Expands
Perplexity AI, a rising force in the generative AI market, has announced a major partnership with PayPal that will allow U.S. consumers to make purchases directly through its AI chat interface. From booking travel to buying products and concert tickets, users will now be able to complete transactions without leaving the conversation.
Key Highlights of the Perplexity–PayPal Partnership
- In-chat shopping: U.S. users can now make purchases, including travel bookings and event tickets, directly within the Perplexity chat interface.
- Seamless payments: Transactions are processed instantly using PayPal or Venmo, with one-click checkout enabled by PayPal’s passkey technology.
- Complete order management: PayPal will manage payment processing, shipping, tracking, and customer support.
- No need to switch apps: All actions—from product discovery to payment confirmation—take place within Perplexity’s platform.
What This Means for AI-Powered Commerce
The integration is part of Perplexity’s broader push into AI-driven e-commerce, positioning the platform as a strong competitor to OpenAI’s ChatGPT and Google’s AI tools.
- Perplexity first entered e-commerce in 2024 by allowing U.S. paid users to shop via integrations with platforms like Shopify.
- This update takes it further by enabling end-to-end shopping experiences directly inside chat—something other major AI tools have yet to implement.
- Ryan Foutty, VP of Business at Perplexity, stated the goal is to “make everything easier for people, wherever and however they make decisions.”
Why PayPal’s Involvement Matters
PayPal isn’t just handling the transactions—it’s redefining the infrastructure behind AI commerce.
- The company launched a developer toolkit to integrate its payment features into AI tools.
- Srini Venkatesan, PayPal’s CTO, highlighted that the system automatically fills billing and shipping information while verifying both buyer and seller, reducing friction and fraud risk.
- According to Venkatesan, “agentic commerce” is the future—where AI agents handle not only searches, but also the actual purchase.
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The AI Race in Payments
The announcement aligns with broader moves across the payment industry as companies race to integrate AI capabilities:
- Visa introduced “Intelligent Commerce” in April 2025, allowing AI agents to securely select and buy items using tokenized credentials.
- Mastercard launched “Agent Pay” in collaboration with Microsoft, enabling AI-based end-to-end commerce workflows.
- These tools aim to serve the growing need for AI systems that not only recommend but also transact securely.
Relevant Industry Statistics
- AI-powered customer service chat usage grew by 42% year-over-year, according to Salesforce data.
- Buying decisions influenced by AI rose 6% over the past year.
- AI-influenced sales reached $229 billion between November and December 2024, up from $199 billion in the same period the previous year.
- Perplexity is currently finalizing a $500 million funding round at a $14 billion valuation, slightly down from its earlier $18 billion target.
Conclusion
As digital behavior shifts toward hands-free, AI-assisted experiences, Perplexity’s partnership with PayPal marks a pivotal moment in the future of e-commerce. With end-to-end in-chat shopping, the company is redefining how consumers make decisions and complete transactions—setting a new standard for AI platforms.
