Key highlights:
- Perplexity teams up with PayPal to enable AI-powered in-chat shopping for U.S. consumers.
- Users can book travel, buy products, and get event tickets directly within the chat interface.
- Payments via PayPal or Venmo are completed in one click, with PayPal handling processing, shipping, and support.
- The move strengthens Perplexity’s position in the generative AI market alongside OpenAI, Google, and Anthropic.
- Perplexity is closing a $500M funding round at a $14B valuation.
- PayPal, Visa, and Mastercard are racing to lead AI commerce, embedding payments into AI agents and chat systems.
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In a strategic move to enhance digital commerce, Perplexity has partnered with PayPal to launch AI-powered in-chat shopping, offering U.S. consumers a seamless buying experience within a chat interface, CNBC reports. The feature allows users to book travel, purchase products, and secure event tickets — all without leaving the chat.
Through this integration, payments can be processed directly via PayPal or Venmo, with PayPal managing shipping, tracking, and support. Transactions are completed in one click using passkey technology, delivering a frictionless checkout experience.
“Perplexity wants to be wherever users are asking questions and making decisions,” said Ryan Foutty, VP of Business at Perplexity. “Our vision for assistive AI is to make everything easier and better for people.”
A bold move in the AI-powered in-chat shopping race
This collaboration strengthens Perplexity’s position in the competitive generative AI market, where it faces rivals like OpenAI, Anthropic, and Google. Perplexity previously introduced e-commerce capabilities through integrations with platforms like Shopify, but this update marks a significant advancement: the ability to complete purchases within a chat environment.
With this feature, AI-powered in-chat shopping becomes more than a concept — it’s a practical tool for users looking to shop smarter and faster using artificial intelligence.
PayPal’s competitive edge
PayPal, meanwhile, is intensifying its AI strategy. Alongside rivals like Stripe, Visa, and Mastercard, PayPal is developing tools to embed payments into AI shopping experiences. The company has launched a developer toolkit that connects merchants directly to customers via chat agents.
Srini Venkatesan, PayPal’s CTO, emphasized the shift:
“The next generation of commerce is happening on the agentic side. People are beginning to research and shop online through AI agents, from discovery to payment.”
PayPal’s technology verifies both buyers and sellers through digital wallets, pre-filling billing and shipping details and ensuring security and trust.
Visa, Mastercard, and PayPal push toward AI commerce
In April, Visa announced “Intelligent Commerce,” partnering with AI leaders including Microsoft, Anthropic, OpenAI, and Perplexity. Mastercard launched “Agent Pay” using Microsoft’s AI tools to drive agentic commerce across the entire value chain.
These developments underscore a broader industry trend: the rise of AI-powered in-chat shopping as a mainstream consumer behavior.
Perplexity’s growth and market positioning
This partnership with PayPal comes at a pivotal time. Perplexity is finalizing a $500 million funding round at a $14 billion valuation — slightly down from its initial $18 billion goal, but still a testament to investor confidence.
According to Salesforce data, AI-driven chat usage for customer service surged by 42% in the past year. While AI’s influence on buying decisions rose more modestly (6%), global AI-influenced sales climbed to $229 billion in the 2024 holiday season — up from $199 billion the year before.
The future of AI-powered in-chat shopping
As Perplexity, PayPal, and other tech giants continue to innovate, AI-powered in-chat shopping is rapidly evolving from a convenience into a competitive necessity. With real-time, intelligent agents assisting in everything from discovery to checkout, the commerce experience is being redefined for the AI age.
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