PayPal backs rollout of Microsoft's newly launched Copilot Checkout

PayPal Holdings Inc and Microsoft Corp revealed they are teaming up for the newly launched Copilot Checkout purchasing platform.

Copilot Checkout is Redmond, Washington-based Microsoft's new artificial intelligence‑powered shopping feature that lets users discover, decide and pay within the Copilot experience.

Nayna Sheth, head of Product for Agentic Payments at Microsoft, said: "PayPal's leadership in commerce, payments and trusted relationships with hundreds of millions of consumers and merchants over 25 years make them an ideal partner. By integrating PayPal's commerce expertise into Copilot, we're enabling a simpler way to move from discovery to purchase while creating new opportunities for merchants and consumers alike."

PayPal, a San Jose, California-based financial transaction processing services company, supported the rollout by powering merchant inventory surfacing, branded checkout, guest checkout and credit‑card payments within Copilot.com. It also plans to expand to more devices and channels, offering multiple funding options and applying its buyer and seller protections to eligible transactions.

PayPal explained that merchants' product catalogues will automatically become shoppable through its store‑sync technology, a feature of its recently launched agentic commerce services aimed at helping businesses attract customers in an AI‑led retail landscape.

The company added that Copilot‑assisted journeys drive 53% more purchases within 30 minutes and nearly triples conversion when shopping intent is present, supported by a network of more than 192,000 merchants.

"Collaborating with Microsoft marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences. By integrating PayPal's agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers. Together, we're unlocking more meaningful, trusted connections across the commerce ecosystem and shaping the future of intelligent shopping," said Michelle Gill, general manager of Small Business & Financial Services at PayPal.