① PayPal announced that it has signed a cooperation agreement with OpenAI, and its digital wallet will be embedded with ChatGPT, allowing users to directly access the chatbot. ① Complete shopping payments in China; ② PayPal raised its full-year earnings forecast and announced its first dividend payout in 27 years.
On Tuesday (October 28) local time, payment company PayPal announced that it has signed a cooperation agreement with OpenAI, and its digital wallet will be embedded with ChatGPT, allowing users to complete shopping payments directly in the chatbot .
Driven by this news, PayPal shares surged more than 15% in pre-market trading.
According to PayPal CEO Alex Chriss, the agreement was finalized last weekend; starting next year, both sides of the PayPal ecosystem—consumers and merchants—will be able to access ChatGPT, where users can buy goods and merchants can list and sell their inventory.
Chriss stated, "We have hundreds of millions of loyal PayPal wallet users who can now enjoy a secure and reliable checkout experience by clicking the 'Buy with PayPal' button on ChatGPT."
OpenAI is expanding the e-commerce capabilities of ChatGPT. Last month, the company announced that ChatGPT users could purchase goods from merchants on Shopify and Etsy platforms; two weeks ago, it also announced a partnership with Walmart. An e-commerce cooperation agreement was reached.
“This is a completely new shopping model. It’s hard to imagine that agenttic commerce won’t become an important part of the future,” Chriss said.
PayPal also released its third-quarter results on Tuesday. While raising its full-year earnings forecast, the company announced its first dividend payment in its 27-year history, demonstrating its confidence in its cash flow and long-term profitability.
PayPal raised its full-year adjusted earnings per share guidance to $5.35–$5.39 (previously $5.15–$5.30), exceeding analysts' expectations of $5.24. The board approved a quarterly dividend of $0.14 per share, targeting a payout ratio of 10% of adjusted profits.
According to data released by PayPal, excluding currency effects, its total payment volume increased by 7% to $458.1 billion.
PayPal initially benefited from the COVID-19 pandemic, but experienced a downturn as consumers returned to physical stores and spending patterns stabilized. This prompted the company to focus on high-margin businesses and implement cost-cutting measures.
(Article source: CLS)
