PayPal Holdings Inc. announced on Tuesday a strategic partnership with OpenAI, enabling ChatGPT users to make purchases using PayPal’s digital wallet, driving the company’s shares up 13% in pre-market trading.
The fintech giant also raised its full-year financial outlook and declared its first-ever dividend in 27 years, signaling strong confidence in its cash flow and long-term profitability.
Under the agreement, PayPal’s global merchant network will be integrated with ChatGPT, allowing users to buy products directly through the AI-powered platform. The move comes as AI-driven shopping tools gain traction, offering digital assistants that autonomously research, compare, and purchase items based on user preferences, budgets, reviews, and price tracking.
“By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power seamless payments and commerce experiences, helping customers move from chat to checkout in just a few taps,” said PayPal CEO Alex Chriss.
Upgraded Forecast and Dividend Announcement
PayPal now expects full-year adjusted earnings per share (EPS) between US$5.35 and US$5.39, up from its previous guidance of US$5.15 to US$5.30, and exceeding analysts’ consensus of US$5.24.
In a historic first, the company’s board approved a quarterly dividend of 14 cents per share, reflecting a targeted payout ratio of 10% of adjusted profits.
Over recent years, under Chriss’s leadership, PayPal has shifted its focus toward profitability rather than rapid revenue growth. After peaking during the pandemic, the company faced slower growth as consumer spending returned to physical stores, prompting cost-cutting measures and a pivot to higher-margin services.
Despite broader economic pressures, PayPal’s core payment volumes have remained resilient. Total payment volume grew 7% on a foreign-exchange neutral basis, reaching US$458.1 billion (RM1.9 trillion), underscoring the durability of its business.
