A payments incumbent in turnaround that uses long-standing AI for fraud and risk, is betting on agentic commerce across ChatGPT, Copilot, Perplexity and Gemini, and under a new CEO is using AI inside the company to cut costs.
How is PayPal using AI?
PayPal says it uses AI and machine learning for fraud prevention, risk management, product optimization and customer service, and since October 2025 sells agentic commerce services that let merchants sell inside ChatGPT, Microsoft Copilot and Perplexity. Enrique Lores replaced Alex Chriss as CEO on March 1, 2026, created a Chief AI Transformation role, and targets at least $1.5 billion of gross run-rate savings. PayPal processed $1.79 trillion in 2025; a $53.4 billion Stripe-Advent takeover approach ended in August 2026.
Category
Payments
Founded
1998
Headquarters
San Jose, United States
Licence and supervision
US: PayPal, Inc. holds state money transmitter licences (or equivalents) and a full New York DFS BitLicense; EU: PayPal (Europe) S.à r.l. et Cie, S.C.A., a Luxembourg credit institution supervised by the CSSF; UK: PayPal UK Ltd, e-money institution and consumer credit firm (FCA); Singapore: Major Payment Institution licence (MAS). Applied December 2025 to the Utah DFI and FDIC for PayPal Bank, a proposed industrial loan company.
Scale
$1.79 trillion total payment volume and 439 million active consumer and merchant accounts in 2025 (year end December 31, 2025)
Flagship platform
PayPal agentic commerce services (agent ready and store sync)
AI leadership
Enrique Lores · Jamie Miller · Srini Venkatesan · Anshu Bhardwaj · Frank Keller
- PayPal's 2025 Form 10-K says it uses AI and machine-learning technologies in fraud prevention, risk management, product optimization and customer service, and names the EU Artificial Intelligence Act as a regulation that could limit AI-driven features.
- On October 28, 2025 PayPal launched agentic commerce services (agent ready and store sync) and agreed with OpenAI to adopt the Agentic Commerce Protocol for Instant Checkout in ChatGPT; under the same deal it is scaling ChatGPT Enterprise to its 24,000+ employees and giving engineers Codex.
- PayPal powers Microsoft's Copilot Checkout (January 8, 2026) and agreed on January 22, 2026 to buy Cymbio, which runs store sync; the deal closed February 5, 2026, with ChatGPT and Google's Gemini app and AI Mode then described as coming soon.
- The board replaced CEO Alex Chriss with board chair Enrique Lores, effective March 1, 2026, saying the pace of change and execution was not in line with its expectations; an April 29, 2026 reorganization created three businesses and named Anshu Bhardwaj Chief AI Transformation & Simplification Officer.
- On the Q2 2026 call (July 28, 2026), per PYMNTS, PayPal put agentic payments and digital identity as more significant from 2028 onward, targeted at least $1.5 billion of gross run-rate savings over two to three years, and said embedding AI in software delivery had cut production times.
- Stripe and Advent International offered $60.50 a share, about $53.4 billion, in July 2026 (CNBC); American Banker reported on August 28, 2026 that they had ended the pursuit, and Payments Dive reported job cuts days later as part of a previously announced cost plan.
- New York DFS fined PayPal $2 million in January 2025 for Cybersecurity Regulation violations after customer Social Security numbers were exposed through Form 1099-K data flows.
- On September 23, 2026 PayPal said it would support Meta's Muse personal AI agent, letting Muse search and execute transactions on consumers' behalf and letting PayPal's account holders shop and check out with Muse across PayPal's merchants worldwide, American Banker reported.
- On October 15, 2026 PayPal brought its agentic commerce services to Glance, an AI-powered personal shopping platform embedded on more than 60 million mobile and CTV devices (Samsung, Motorola and others); PayPal is the only partner providing native in-app checkout on Glance, letting consumers discover, virtually try on and buy products without leaving the app.
- On its Q3 2026 earnings call (October 27, 2026) PayPal disclosed that AI chat agents had resolved 24 million customer contacts year to date across six languages and 190 countries, that cost savings exiting the fourth quarter would exceed $700 million toward its $1.5 billion gross run-rate target, and that headcount had fallen by more than 2,000 positions as part of a reorganization removing three management layers across most of the company.
What is PayPal agentic commerce services (agent ready and store sync)?
Launched October 28, 2025: agent ready lets existing PayPal merchants accept payments on AI surfaces with fraud detection and buyer protection, and store sync makes merchant catalogs discoverable and purchasable inside AI channels. PayPal adopted OpenAI's Agentic Commerce Protocol for ChatGPT, powers Microsoft's Copilot Checkout (January 2026) and bought Cymbio (closed February 5, 2026) to run store sync; brands including Abercrombie & Fitch were live on Copilot and Perplexity by January 2026.[8][7][10][11]
What has PayPal done on AI, and when?
- Oct 27, 2026
Q3 2026 results: AI chat agents resolve 24 million contacts YTD[2][24][25][3]
PayPal reported Q3 2026 total payment volume of $487.1 billion (up 6%) and net revenues of $8.6 billion (up 2%), with non-GAAP EPS of $1.45 (up 8%). Management said AI chat agents had resolved 24 million customer contacts year to date across six languages and 190 countries, that cost savings exiting the fourth quarter would top $700 million toward the $1.5 billion gross run-rate target, and that headcount had fallen by more than 2,000 positions as part of an organizational simplification removing three management layers across most of the company; CEO Enrique Lores said financial-services products such as loans, credit and debit cards would increasingly drive transaction-margin growth. The Form 10-Q filed the same day disclosed that in September 2026 PayPal received a civil investigative demand from the Federal Trade Commission 'investigating whether PayPal engaged in deceptive, unfair, or otherwise unlawful practices in connection with the advertising, marketing, sale, issuance, or management of fees and purchase protection in connection with financial products and services'; PayPal says it is cooperating.
- Oct 15, 2026
PayPal agentic commerce reaches Glance[23]
PayPal brought real-time product data and native checkout to Glance, an AI-powered personal shopping platform backed by InMobi and pre-installed on more than 60 million mobile and CTV devices; shoppers can use an AI avatar to virtually try on clothes and complete purchases with PayPal without leaving the app, PayPal's VP of Agentic Commerce Mike Edmonds said.
- Sep 23, 2026
PayPal adds support for Meta's Muse[22]
PayPal said it would support Muse, Meta's personal AI agent, enabling Muse to search and execute transactions on behalf of consumers; PayPal said in a social media post that its hundreds of millions of consumers would be able to shop and check out with Muse across PayPal's merchants worldwide.
- Aug 28, 2026
- Aug 10, 2026
CTO presents a Merchant AI Integration Agent[16]
At Ai4 2026 CTO Srini Venkatesan described an agent that reads a merchant's codebase and upgrades, validates and certifies its PayPal integration, cutting certification from weeks to hours, per PayPal.
- Jul 28, 2026
Q2 2026: agentic payments pushed to 2028+, AI used for cost cuts[4][18]
TPV rose 10% to $486.4 billion and revenue 5% to $8.7 billion. On the call, per PYMNTS, PayPal said agentic payments and digital identity become more significant from 2028, targeted at least $1.5 billion of gross run-rate savings, and said embedding AI in software delivery reduced production times.
- Jul 15, 2026
Stripe and Advent offer $53.4 billion[19]
CNBC confirmed a joint $60.50-a-share cash offer from Stripe and Advent International for PayPal.
- Apr 29, 2026
Reorganization creates a Chief AI Transformation officer[15]
PayPal moved to three businesses (Checkout Solutions & PayPal; Consumer Financial Services & Venmo; Payment Services & Crypto) and named Anshu Bhardwaj Chief AI Transformation & Simplification Officer; Michelle Gill, credited with establishing its foundation in AI-driven payment experiences, departed.
- Apr 23, 2026
Natural-language data agent for employees[14]
At Google Cloud Next '26 PayPal described an AI agent that lets thousands of employees query data in natural language without SQL, built on a multi-year unification of its data systems.
- Feb 3, 2026
Enrique Lores named CEO; Alex Chriss out[12][1]
The board appointed Lores, board chair since July 2024 and former HP CEO, effective March 1, 2026, saying progress under Chriss was not in line with its expectations; Lores cited the rapid acceleration of AI reshaping commerce. The 2025 10-K, filed the same day, describes AI use in fraud, risk, product optimization and customer service.
- Jan 22, 2026
PayPal agrees to buy Cymbio for agentic commerce[11]
Cymbio, a Tel Aviv multi-channel orchestration platform, runs store sync; PayPal said Abercrombie & Fitch, Fabletics, Ashley Furniture, Newegg and Adorama were live on Copilot and Perplexity. The acquisition closed February 5, 2026.
- Jan 8, 2026
PayPal powers Microsoft's Copilot Checkout[10]
PayPal supplies merchant inventory via store sync, branded and guest checkout and card payments inside Copilot, starting with Copilot.com.
- Dec 15, 2025
PayPal applies for a Utah industrial bank[9]
PayPal filed with the Utah Department of Financial Institutions and the FDIC to form PayPal Bank, a proposed industrial loan company for US small-business lending and interest-bearing savings, with FDIC-insured deposits if approved.
- Oct 28, 2025
Agentic commerce services launched[8]
PayPal introduced store sync, to make merchant catalogs discoverable in AI channels such as Perplexity, and agent ready, to let existing merchants accept payments on AI surfaces with fraud detection and buyer protection (planned for early 2026).
- Oct 28, 2025
PayPal adopts the Agentic Commerce Protocol with OpenAI[7]
PayPal said ChatGPT users will be able to check out with PayPal, it will process card payments for merchants using Instant Checkout, and its merchant catalogs will reach ChatGPT in 2026; the deal also scales ChatGPT Enterprise to 24,000+ employees and Codex for engineers.
- Jan 23, 2025
New York DFS fines PayPal $2 million over cybersecurity[17]
DFS found PayPal failed to use qualified personnel for key cybersecurity functions and lacked controls such as multifactor authentication, CAPTCHA or rate limiting, after cybercriminals used compromised credentials to reach Form 1099-Ks containing Social Security numbers; PayPal has since remediated the issues, DFS said.
- May 15, 2007
PayPal gets an EU banking licence in Luxembourg[6]
The CSSF granted PayPal a banking licence for the European Union, effective July 2, 2007, and PayPal moved its European headquarters to Luxembourg; the release notes PayPal Inc was set up in the US in December 1998.
Where does PayPal use AI today?
| System | What it does | Status | Use case |
|---|---|---|---|
| AI and ML fraud prevention and risk management[1] | PayPal's 10-K says it uses AI and machine-learning technologies in fraud prevention and risk management across its two-sided network. | In production | Fraud detection |
| AI in customer service[1][24] | The 10-K lists customer service among the areas where PayPal uses AI and machine learning; its Q3 2026 earnings call disclosed that AI chat agents had resolved 24 million customer contacts year to date, operating in six languages across 190 countries. | In production | Customer-facing chatbots |
| Store sync and agentic checkout on AI platforms[11][10] | Merchant catalogs discoverable and purchasable inside Microsoft Copilot and Perplexity, with brands live by January 2026; ChatGPT and Google's Gemini app and AI Mode described as coming soon. | In production | Generative & agentic AI |
| Agent ready[8] | Lets existing PayPal merchants accept payments on AI surfaces with fraud detection, buyer protection and dispute resolution; announced for early 2026. | Announced | Generative & agentic AI |
| Natural-language data agent for employees[14] | An AI agent deployed to thousands of employees to query company data in natural language, with encrypted credentials and audited interactions. | In production | Generative & agentic AI |
| AI in software delivery and Codex[7][18] | OpenAI Codex for engineers under the October 2025 OpenAI deal; in July 2026 management said embedding AI within software delivery cycles reduced production times. | In production | AI-generated code & coding agents |
| Merchant AI Integration Agent[16] | An agent that reads a merchant's codebase and upgrades, validates and certifies its PayPal integration; PayPal says certification takes hours rather than weeks. | Announced | Generative & agentic AI |
| ChatGPT Enterprise across the workforce[7] | PayPal is scaling access to ChatGPT Enterprise for its 24,000+ employees and expanding direct use of OpenAI's APIs. | Rolling out | Third-party & vendor AI |
| Checkout support for Meta's Muse[22] | PayPal added support for Muse, Meta's personal AI agent, so Muse can search for products and execute transactions on a consumer's behalf at PayPal's merchants. | Announced | Generative & agentic AI |
| Native checkout inside Glance[23] | PayPal's agentic commerce services power native in-app checkout on Glance, an AI shopping platform on more than 60 million devices, letting consumers discover, visualize and buy products with PayPal without leaving the app. | In production | Generative & agentic AI |
Use-case links open the tracker's rules-by-use-case matrix: which documents govern each system type.
What has PayPal disclosed in numbers?
| Metric | Value | As of |
|---|---|---|
| Total payment volume / active accounts / employees | $1.79 trillion TPV; 439 million active accounts; 23,800 employees[5][1] | Dec 31, 2025 |
| Q3 2026 results | TPV $487.1bn (+6%); net revenues $8.6bn (+2%); GAAP EPS $1.25 (-4%); non-GAAP EPS $1.45 (+8%); 440 million active accounts (+0.6%). Q2 2026 for comparison: TPV $486.4bn (+10%); net revenues $8.7bn (+5%); GAAP EPS $1.25[2][4] | Sep 30, 2026 |
| Cost programme | at least $1.5 billion gross run-rate savings over two to three years; more than $700 million exiting Q4 2026, per the Q3 2026 call (up from about $400 million identified as of the Q2 2026 call)[24][18] | Oct 27, 2026 |
| AI chat agents, customer contacts resolved | 24 million contacts year to date, across six languages and 190 countries[24] | Oct 27, 2026 |
| Headcount reduction tied to organizational simplification | more than 2,000 positions; three management layers removed across most of the company[24] | Oct 27, 2026 |
| Employees with ChatGPT Enterprise access being scaled | 24,000+[7] | Oct 28, 2025 |
| Stripe-Advent takeover offer | $60.50 per share, about $53.4 billion (not pursued after August 2026)[19][20] | Jul 15, 2026 |
| NY DFS cybersecurity penalty | $2 million[17] | Jan 23, 2025 |
“The payments industry is changing faster than ever, driven by new technologies, evolving regulations, an increasingly competitive landscape, and the rapid acceleration of AI that is reshaping commerce daily.”[12]
Enrique Lores · Incoming President and CEO · Feb 3, 2026
“Commerce has expanded from the internet to social to agentic — and through all of that change, our north star stays the same: to be the dependable backbone for trusted payments, no matter the channel.”[16]
Srini Venkatesan · Chief Technology Officer · Aug 10, 2026
“Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop”[7]
Alex Chriss · then President and CEO · Oct 28, 2025
“At this point, while we remain open, our focus is on executing our own strategic plan”[18]
Enrique Lores · President and CEO · Jul 28, 2026
Who runs AI at PayPal?
Which regulators govern PayPal's AI?
| Authority | Why it matters here | Documents |
|---|---|---|
| Commission de Surveillance du Secteur Financier (CSSF, Luxembourg) | PayPal (Europe) S.à r.l. et Cie, S.C.A. is licensed and regulated as a credit institution in Luxembourg by the CSSF (banking licence effective July 2, 2007) and serves PayPal's EU customers. | |
| UK (BoE / PRA / FCA) | PayPal UK Ltd is regulated by the FCA as an e-money institution and consumer credit firm and is registered as a crypto asset business. | FCA AI Update (Apr 2024) |
| NY DFS | PayPal holds a full New York BitLicense and is regulated by DFS as a virtual currency business; DFS fined it $2 million in January 2025 under the Cybersecurity Regulation, which also frames DFS guidance on AI-related cyber risks. | 23 NYCRR Part 500 DFS AI Cybersecurity Industry Letter (Oct 2024) |
| CFPB | The CFPB has authority over PayPal's US consumer payments and credit products and has sent it civil investigative demands on Regulation E error resolution; PayPal says it uses AI in customer service, an area covered by CFPB chatbot guidance. | CFPB Chatbots in Consumer Finance (issue spotlight, 2023) |
| Federal Trade Commission | PayPal's Form 10-Q for Q3 2026 discloses three FTC civil investigative demands: February 2022 (practices relating to commercial customers that submit charges on behalf of other merchants or sellers), August 2025 (whether deceptive schemes by merchants on its platform were facilitated or furthered by its onboarding, due diligence and other practices) and September 2026 (whether it engaged in deceptive, unfair or otherwise unlawful practices in the advertising, marketing, sale, issuance or management of fees and purchase protection for financial products and services). PayPal says it is cooperating. | |
| FDIC | PayPal applied in December 2025 to the FDIC and Utah DFI for PayPal Bank, a proposed industrial loan company whose deposits would be FDIC-insured. | |
| EU AI Act | PayPal's 10-K cites the EU Artificial Intelligence Act as a framework that could require operational changes or limit AI-driven features, relevant to the AI it uses for fraud, risk and customer service at its Luxembourg bank. | Regulation (EU) 2024/1689 |
Linked authorities have a page in the Regulation tracker; the others are named for completeness and not yet tracked.
What does the public record suggest about PayPal's AI strategy?
Analysis by BankingNewsAI from the sources cited on this page. Observations, not advice.
01
PayPal's own timetable puts agentic payments after 2028
Despite agentic launches with OpenAI, Microsoft and Perplexity since late 2025, management told analysts in July 2026 that agentic payments and digital identity become more significant from 2028; near-term AI value is cost and speed inside the company.
02
AI is now framed as a cost lever under the new CEO
The April 2026 reorganization paired AI with simplification in one executive role, and the Q2 2026 plan targets at least $1.5 billion of gross run-rate savings; job cuts followed in September 2026, though the company did not attribute them to AI.
03
Leadership churn touches the agentic programme
Michelle Gill, who fronted the agentic commerce services, Copilot and Cymbio announcements, left in the April 2026 reorganization, and the CEO who signed the OpenAI deal was replaced. Continuity of the agentic roadmap rests with the new three-business structure.
04
Security enforcement is the concrete regulatory exposure
The clearest regulatory action in the record is New York DFS's $2 million cybersecurity penalty over Form 1099-K data, not an AI-specific case, but DFS applies the same regulation to AI-related cyber risk.
05
PayPal and Stripe are building the same agentic rails
Both support OpenAI's Agentic Commerce Protocol and power Microsoft's Copilot Checkout, which helps explain why Stripe pursued a $53.4 billion deal for PayPal in 2026 before walking away.
Where does the PayPal record go deeper?
7 topic pages under this profile, each answering one question from the same sourced record.
- How does PayPal use AI across its payment ecosystem?
- What is PayPal's role in the digital payments transformation?
- How does PayPal use AI to fight fraud, and what are the results?
- What is PayPal's AI strategy?
- What is PayPal doing in agentic commerce?
- Who are PayPal's competitors?
- How strong are PayPal's cybersecurity and threat-intelligence defenses on the public record?
How does PayPal use AI?
PayPal's 2025 Form 10-K says it uses AI and machine-learning technologies in fraud prevention, risk management, product optimization and customer service. Since October 2025 it has also sold agentic commerce services that let merchants sell inside AI platforms, and internally it runs a natural-language data agent for thousands of employees and uses AI in software delivery. PayPal processed $1.79 trillion in payment volume in 2025.
Does PayPal work with OpenAI and ChatGPT?
Yes. On October 28, 2025 PayPal said it would adopt OpenAI's Agentic Commerce Protocol so ChatGPT users can check out with PayPal, process card payments for merchants using Instant Checkout, and bring merchant catalogs to ChatGPT in 2026. The deal also scales ChatGPT Enterprise to PayPal's 24,000+ employees and gives engineers Codex.
What are PayPal's agentic commerce services?
Launched October 28, 2025, they include store sync, which makes merchants' product catalogs discoverable and purchasable in AI channels, and agent ready, which lets existing merchants accept payments on AI surfaces with fraud detection and buyer protection. Store sync, run by acquired Cymbio, was live on Microsoft Copilot and Perplexity by January 2026.
Who is PayPal's CEO?
Enrique Lores, former HP CEO and PayPal board chair since July 2024, became President and CEO on March 1, 2026, succeeding Alex Chriss. The board said the pace of change under Chriss was not in line with its expectations. In April 2026 Lores reorganized PayPal into three businesses and appointed a Chief AI Transformation & Simplification Officer.
Did Stripe buy PayPal?
No. Stripe and Advent International offered $60.50 a share, about $53.4 billion, in July 2026, CNBC confirmed. On the July 28 call CEO Enrique Lores said PayPal remained open but focused on its own plan, and on August 28, 2026 American Banker, citing Bloomberg, reported that Stripe and Advent had ended their pursuit.
Is PayPal cutting jobs because of AI?
PayPal cut jobs in September 2026, Payments Dive reported, and a spokesperson tied them to a previously announced multi-year transformation; the company did not attribute them to AI. PayPal targets at least $1.5 billion of gross run-rate savings over two to three years and said embedding AI in software delivery has reduced production times. It had about 23,800 employees at the end of 2025.
Who regulates PayPal?
In the US, state regulators license PayPal, Inc. as a money transmitter and New York DFS issued its BitLicense; the CFPB oversees its consumer products. In the EU, PayPal (Europe) is a Luxembourg credit institution supervised by the CSSF; in the UK, PayPal UK is regulated by the FCA. PayPal applied in December 2025 to the FDIC and Utah for an industrial bank. Its Q3 2026 Form 10-Q also discloses a September 2026 civil investigative demand from the FTC over fees and purchase protection on financial products.
- PayPal Holdings, Inc. Annual Report (Form 10-K) for fiscal year 2025
- PayPal Reports Third Quarter 2026 Results (Exhibit 99.1 to Form 8-K)
- PayPal Holdings, Inc. Quarterly Report (Form 10-Q) for the quarter ended September 30, 2026
- PayPal Reports Second Quarter 2026 Results (Exhibit 99.1 to Form 8-K)
- Who we are: history and facts
- PayPal Expands European Growth With Bank Charter and New European Headquarters
- OpenAI and PayPal Team Up to Power Instant Checkout and Agentic Commerce in ChatGPT
- PayPal Launches Agentic Commerce Services to Power AI-Driven Shopping
- PayPal Submits Applications to Establish an Industrial Bank to Expand Access to Financial Services for U.S. Small Businesses
- PayPal Powers Microsoft's Launch of Copilot Checkout
- PayPal to Acquire Cymbio, Accelerating Agentic Commerce Capabilities
- PayPal Appoints Enrique Lores as Chief Executive Officer and David W. Dorman as Independent Board Chair
- PayPal Recognized as Global Leader in AI Talent in 2026 Evident AI Index for Payments
- PayPal Showcases AI-Powered Innovation at Google Cloud Next '26
- PayPal Announces Strategic Reorganization to Accelerate Growth
- PayPal Takes Center Stage at Ai4 2026
- Superintendent Adrienne A. Harris Secures $2 Million Cybersecurity Settlement with PayPal, Inc.
- PayPal Pushes AI, Digital Identity as Checkout Grows 2%
- Stripe, Advent make $53 billion takeover offer for PayPal, sending stock soaring
- Stripe, Advent suspend their pursuit of PayPal
- PayPal makes job cuts
- PayPal partners with Meta's Muse AI assistant
- Glance and PayPal Bring AI-Powered Shopping and Checkout to Tens of Millions of U.S. Consumers
- PayPal (PYPL) Q3 2026 Earnings Call Transcript
- PayPal counts on growing its business beyond payments
Neobank
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Payments
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Brokerage
Business finance & infrastructure
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