PayPal and Microsoft have teamed up to launch Copilot Checkout, allowing shoppers to complete a purchase within Copilot without being redirected to a retailer's site. The initial rollout begins on Copilot.com in the U.S., with PayPal managing merchant inventory surfacing, branded checkout, guest checkout, and card payments. There are plans to extend this flow to additional Copilot surfaces.
Copilot presents curated, shoppable results during a chat and then opens an in-chat checkout step. Merchants remain the merchant of record, maintaining control over fulfillment and customer service. The early launch inventory includes Urban Outfitters, Anthropologie, Ashley Furniture, and listings from Etsy sellers, positioning Copilot as a new distribution point for high-intent shopping journeys.
We’re teaming up with @Microsoft to power their launch of Copilot Checkout, making it easier for shoppers to discover, decide, and complete purchases in one place: https://t.co/1SaAEiKram pic.twitter.com/sFTSErxs45
— PayPal (@PayPal) January 8, 2026
PayPal’s role focuses on its agentic commerce services, including “store sync,” which makes product catalogs purchasable within AI shopping flows. Buyers can pay with multiple funding options, including the PayPal wallet, and eligible transactions can carry PayPal buyer and seller protections. Microsoft and partners are also opening onboarding paths for merchants through existing PayPal, Shopify, and Stripe relationships, aiming to quickly scale merchant coverage as more retailers ramp up throughout the month.
For PayPal, this initiative is a push to make its checkout and risk stack the default payment layer for AI-led commerce across multiple ecosystems. This builds on its large two-sided network of consumers and merchants and its broader shift toward agent-driven purchasing experiences.
