PayPal Soars After Partnering With OpenAI and Issuing Its First Dividend
PayPal just made a huge move that’s shaking up both the tech and financial worlds. The company announced a groundbreaking deal with OpenAI that will allow ChatGPT users to buy products directly through PayPal’s payment wallet. As soon as the news broke, PayPal’s stock jumped an impressive 13% in premarket trading — a clear sign that investors are excited about what’s coming next.
This new partnership essentially links PayPal’s massive global merchant network with ChatGPT’s ever-growing user base. It means people chatting with the AI could now go from casual conversation to actually buying a product — all within a few taps. This could mark a major shift in how online shopping works. Instead of switching between websites and apps, AI-powered assistants like ChatGPT will be able to help users research, compare, and even purchase products seamlessly.
PayPal’s CEO, Alex Chriss, called this collaboration a major step forward in what he described as “agentic commerce” — where AI agents handle everything from shopping recommendations to completing transactions. He said the integration will let people move “from chat to checkout” faster and more easily than ever before.
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Alongside this partnership, PayPal also made another historic announcement: it’s issuing its first-ever dividend in its 27-year history. The company’s board approved a quarterly dividend of 14 cents per share, representing about 10% of its adjusted profit. This move is being viewed as a strong signal of confidence in PayPal’s cash generation and long-term profitability.
The company also raised its full-year earnings outlook, now expecting adjusted earnings per share between $5.35 and $5.39 — up from its previous forecast of $5.15 to $5.30. Analysts had estimated around $5.24, so this updated guidance came as a pleasant surprise to the market.
Under CEO Alex Chriss, PayPal has been undergoing a major transformation. Instead of chasing rapid revenue growth like during the pandemic years, the focus has shifted toward profitability and efficiency. As shoppers returned to physical stores, PayPal restructured its business, cut costs, and leaned into higher-margin segments.
Despite inflation and an uneven economy, payment volumes have stayed strong. In fact, PayPal’s total payment volume grew by 7% on a foreign-exchange-neutral basis, reaching $458.1 billion. That resilience shows just how deeply PayPal remains embedded in global commerce.
With its first dividend, stronger earnings, and a forward-looking partnership with OpenAI, PayPal seems to be signaling that it’s not just adapting to the AI era — it’s ready to help define it.
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