PayPal has partnered with Microsoft to support the launch of Copilot Checkout, a new feature that allows users to discover products and complete purchases directly within Microsoft Copilot, without leaving the AI experience.
Under the collaboration, PayPal will power key commerce functions within Copilot, including merchant inventory surfacing, branded checkout, guest checkout, and credit card payments.
The rollout begins with Copilot.com, with plans to expand across additional Copilot-enabled devices and platforms over time.
Copilot Checkout combines Microsoft’s AI-powered discovery and contextual understanding with PayPal’s payments infrastructure and commerce expertise. Through PayPal’s store sync technology, merchants’ product catalogues can be made instantly shoppable within Copilot, creating a seamless path from discovery to payment.
Store sync is part of PayPal’s recently launched agentic commerce services, designed to help merchants operate in AI-led environments where software agents play a more active role in shopping decisions.
Shopping Without Leaving the Conversation
Unlike traditional search-based e-commerce, Copilot uses AI to understand user intent and context. Shoppers can browse curated, personalised product recommendations and complete purchases through PayPal without being redirected to external websites.
Microsoft said this approach reduces friction in the buying process while opening new sales channels for merchants.
Benefits for Merchants and Consumers
For merchants, Copilot Checkout offers access to high-intent shoppers who are already researching and comparing products inside Copilot.
Microsoft and PayPal said this unified experience can help improve conversion rates and expand merchant reach without requiring customers to navigate multiple platforms.
PayPal noted that journeys involving Copilot lead to 53% more purchases within 30 minutes, while shopping experiences that include clear buying intent show conversion rates nearly three times higher than journeys without Copilot.
Consumers can choose from multiple funding options, including PayPal Wallet, and benefit from PayPal’s buyer and seller protection programmes on eligible transactions, providing added confidence when purchasing through AI-powered tools.
Copilot’s shopping ecosystem is supported by a large merchant base, with more than 192,000 merchants offering products across a wide range of categories.
Early Retail Adoption
Furniture retailer Ashley Global Retail is among the early adopters of Copilot Checkout, integrating AI-powered shopping into its customer experience.
PayPal said it is building Copilot Checkout with an open integration model, supporting leading agentic protocols and AI platforms.
This allows merchants to connect their commerce systems across multiple AI ecosystems through a single PayPal integration, reducing complexity as AI-driven shopping expands.
Merchants interested in enabling Copilot Checkout and other agentic commerce capabilities can register through PayPal.ai.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
