PayPal powers Microsoft's Copilot Checkout, letting shoppers buy inside Copilot

PayPal became the payment engine behind Copilot Checkout, the shopping flow in Microsoft's Copilot, which launched at Copilot.com. Shoppers can buy without leaving the chat, with PayPal handling branded checkout, guest checkout and card payments, and merchant catalogs syncing through PayPal's agentic commerce services. For a trader the launch is an early test of whether AI assistants become a real shopping channel that routes volume through PayPal.

• Launched January 8, 2026, starting with Copilot.com
• PayPal wallet is one of the funding options; buyer and seller protections apply to eligible purchases
• Microsoft cites 53% more purchases within 30 minutes for Copilot journeys (Microsoft internal data, August 2025)
• Early merchant partner named in the release: Ashley, a furniture retailer