PayPal unveils partnership with OpenAI for payments on ChatGPT, shares surge

Core Insights - PayPal has entered into a partnership with OpenAI, allowing ChatGPT users to purchase products through its platform, resulting in a 10% increase in its shares [1] - The company has raised its profit forecast for the year, anticipating adjusted EPS between $5.35 and $5.39, up from a previous range of $5.15 to $5.30 [5] - PayPal announced its first-ever dividend of 14 cents per share, representing a targeted payout ratio of 10% of adjusted profit [5] Partnership with OpenAI - The collaboration will connect PayPal's global merchant network to ChatGPT, enabling businesses to sell products and services within the app, which has over 800 million weekly active users [2] - AI shopping tools are emerging as a significant trend in online retail, allowing for autonomous product research, comparison, and purchasing [2][3] - Analysts view this "agentic commerce" as a potential catalyst for leveraging PayPal's user base and driving growth in a new commerce platform [3] Business Strategy and Performance - PayPal's CEO emphasized the shift from a defensive to an offensive strategy, focusing on profitability and high-margin businesses [6] - The company has experienced resilient payment volumes despite inflation and economic challenges, indicating the strength of its core business [7] - The integration with OpenAI is expected to enhance product discoverability and purchasing options for consumers [4]