Core Viewpoint - PayPal has raised its full-year earnings forecast and announced a partnership with OpenAI to integrate its digital wallet into ChatGPT, leading to a significant increase in its stock price during pre-market trading [1][2]. Financial Performance - For the third quarter, PayPal reported a non-GAAP earnings per share of $1.34, exceeding market expectations of $1.20, with revenue reaching $8.42 billion, surpassing the analyst average estimate of $8.23 billion [4]. - Total payment volume was $458.1 billion, reflecting an 8% year-over-year growth, which was better than the market expectation of $450.3 billion [4]. - Transaction and credit losses amounted to $483 million, a 37% increase compared to the same period last year, exceeding the analyst forecast of $479 million [4]. - The company has also initiated its first-ever dividend plan, distributing $0.14 per share, indicating confidence in its cash flow and long-term profitability [1]. Strategic Partnerships - The collaboration with OpenAI aims to enhance the online shopping experience by providing payment technology support for AI-driven product searches, allowing users to convert browsing into actual purchases [1][3]. - PayPal is positioning itself at the forefront of the AI shopping revolution, with the partnership expected to facilitate a seamless payment experience from conversation to checkout [3]. - The company is also expanding its AI shopping infrastructure through partnerships with Google and other AI firms, indicating a strategic focus on integrating AI into its payment solutions [3]. Market Trends - The partnership with OpenAI reflects a broader trend in online retail, where AI shopping tools are becoming essential for consumer engagement, enabling personalized product research and price tracking [3]. - The private credit market continues to expand, as evidenced by Blue Owl Capital's agreement to acquire approximately $7 billion in "buy now, pay later" loans from PayPal, highlighting the growth potential in this sector [5].