By Linet Amuli - Reporter
Kenya, January 12 2026 - PayPal is expanding its role in AI-driven commerce through a new partnership with Microsoft that brings integrated checkout directly into Microsoft Copilot. The collaboration introduces Copilot Checkout, allowing users to search for products, evaluate options, and complete purchases without leaving the Copilot environment.
The integration blends Microsoft’s AI-powered discovery capabilities with PayPal’s established commerce and payment infrastructure. Initially launching on Copilot.com, the experience enables shoppers to browse merchant inventory, complete branded or guest checkout, and pay using credit cards or their PayPal wallet,all within a single conversational flow.
At the core of this initiative is PayPal’s agentic commerce services, which allow merchants to sync product catalogs so items become instantly purchasable in AI-led experiences. These tools are designed to help businesses adapt to a future where intelligent agents increasingly guide how consumers shop, compare, and buy.
Michelle Gill, PayPal’s General Manager of Small Business and Financial Services, said the partnership reflects PayPal’s broader strategy to support both merchants and consumers as commerce becomes more AI-driven. By combining Copilot’s intelligence with PayPal’s transaction capabilities, the companies aim to create reliable, end-to-end shopping journeys built on trust.
Unlike traditional search, Copilot interprets user intent and context, surfacing curated shopping recommendations that align with what customers are trying to accomplish. Once a decision is made, checkout happens instantly through PayPal, reducing friction and drop-off.
From Microsoft’s perspective, the partnership enhances Copilot’s ability to move users smoothly from discovery to purchase. Nayna Sheth, Head of Product for Agentic Payments at Microsoft, noted that PayPal’s long-standing relationships with consumers and merchants make it a natural partner as Copilot evolves into a commerce-enabled assistant.
For merchants, Copilot Checkout offers a new way to reach customers at moments of high intent. Shoppers using Copilot are already researching and comparing products, and embedding checkout directly into that process helps shorten the path to purchase while improving conversion rates.
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Early adopters are already seeing the potential of agentic commerce. Ashley Global Retail, one of the first retailers to embrace the model, views the Copilot integration as a major step forward for conversational shopping, especially in categories like home furnishings, where personalization and guided discovery play a critical role.
Beyond convenience, the integration also emphasizes trust and flexibility. Transactions completed through Copilot Checkout are eligible for PayPal’s buyer and seller protections, and shoppers can choose from multiple funding options. PayPal plans to expand the capability to additional devices and Copilot-supported channels over time.
PayPal is building the solution with an open, platform-agnostic approach, supporting leading AI protocols so merchants can integrate once and scale across multiple AI ecosystems. Businesses interested in participating can register through PayPal.ai.
