PayPal recently signed a contract with OpenAI to integrate the digital wallet into ChatGPT, reports CNBC. This will allow users to easily pay for the products they discover via the AI tool.
The agreement allows PayPal users to make payments via ChatGPT and merchants to list and sell their goods in ChatGPT. OpenAI is apparently taking a big step towards turning ChatGPT into an e-commerce platform and hoping that ChatGPT’s approximately 700 million weekly active users will use the AI as a kind of “personal shopper.”
OpenAI previously announced that it would enable payments via Walmart, Shopify, and Etsy in the US via Instant Checkout. Conversely, PayPal is trying to skillfully position itself alongside leading AI providers, including Google and Perplexity.
PayPal’s press release on the OpenAI deal says:
“This partnership unlocks the convenience of PayPal’s wallet in Instant Checkout, including multiple funding options such as bank, balance, and cards, as well as PayPal’s buyer and seller protections, and post-purchase services such as tracking and dispute resolution, benefits that consumers value when checking out with PayPal.”
OpenAI emphasizes that companies don’t need to register with ChatGPT to take advantage, as payment validation will be handled by PayPal. This should significantly reduce the risk of fraud for both shoppers and merchants, at least according to PayPal CEO Alex Chriss.
What does this mean for the future?
As the use of AI apps like ChatGPT rapidly grows, it isn’t surprising that sales will soon also be possible with the help of such tools. For numerous sellers and providers, this will enable direct access to users who can be given recommendations on products by the AI.
However, language models like ChatGPT are still far from error-free, which can make for risky purchasing decisions. For example, a user who wants to buy a product based on certain specifications could end up with something they didn’t want if the AI went off of incorrect or outdated information when making its recommendations.
Users should be wary of relying solely on ChatGPT and AI tools for advice. Even now, there is no substitute for real-world recommendations and product tests from trusted people with experience.
Further reading: Fun ways to use ChatGPT when you’re bored
