In a groundbreaking move, PayPal has announced a strategic partnership with OpenAI, enabling ChatGPT users to make purchases directly through PayPal’s payment wallet. This collaboration has sent PayPal’s shares surging by 13% in premarket trading, reflecting investor optimism about the deal’s potential. The partnership aims to integrate PayPal’s vast global merchant network with ChatGPT, transforming the generative AI tool into a powerful platform for seamless e-commerce transactions. PayPal CEO Alex Chriss emphasized the significance of the deal, stating that it will allow users to transition from chat to checkout with just a few taps, leveraging the Agentic Commerce Protocol. In addition to the partnership, PayPal raised its full-year adjusted earnings per share (EPS) forecast to between $5.35 and $5.39, up from the previous range of $5.15 to $5.30. The company also declared its first-ever quarterly dividend of 14 cents per share, marking a pivotal moment in its 27-year history. This dividend represents a targeted payout ratio of 10% of adjusted profit, underscoring PayPal’s confidence in its cash generation and long-term profitability. The announcement comes as PayPal shifts its focus from aggressive revenue growth to prioritizing profitability under Chriss’s leadership. Despite challenges in the post-pandemic retail landscape, PayPal has demonstrated resilience, with total payment volume growing by 7% on a foreign exchange-neutral basis to $458.1 billion. The partnership with OpenAI signals a broader trend in the retail sector, where AI-powered shopping tools are emerging as the next frontier in online commerce. These tools, which autonomously research, compare, and purchase products, are poised to redefine the consumer shopping experience by acting as intelligent digital assistants.