PayPal and Microsoft have partnered to bring product discovery and checkout directly into AI-powered conversations with the launch of Copilot Checkout. The new feature allows users to browse products and complete purchases without leaving Microsoft’s Copilot experience, marking a step forward in agentic commerce where AI assistants actively guide users from discovery to transaction. The rollout begins with Copilot.com, where shoppers can explore curated product selections and complete payments seamlessly using PayPal.
By embedding checkout into Copilot, the collaboration aims to remove friction from the online shopping journey. Instead of switching between multiple apps or websites, users can move from product exploration to payment in a single, conversational flow. The integration combines Microsoft’s AI-driven shopping capabilities with PayPal’s established payments infrastructure, offering a trusted and streamlined experience for both consumers and merchants.
PayPal positioned the partnership as part of its broader strategy to support commerce in AI-native environments. “Collaborating with Microsoft marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences,” said Michelle Gill, general manager of small business and financial services at PayPal. She added, “By integrating PayPal’s agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers.”
Microsoft echoed this focus on trust and scale, highlighting PayPal’s long-standing role in digital commerce. Nayna Sheth (Mutha), head of product for agentic payments at Microsoft, said that PayPal’s experience and global reach make it “an ideal partner” as Copilot evolves into a more transactional, action-oriented AI assistant.
For retailers, Copilot Checkout represents a new, high-intent sales channel where discovery and purchase happen almost simultaneously. Ashley Global Retail is among the early adopters of the feature. “As one of the first retailers to embrace agentic commerce, we’ve seen firsthand how AI-powered shopping assistants can transform the customer experience,” said Kyle Dorcas, head of product management at Ashley Global Retail.
According to PayPal and Microsoft, Copilot-led shopping journeys are already showing strong results, with users completing 53 percent more purchases within 30 minutes compared to traditional flows. Building on this early momentum, PayPal plans to expand Copilot Checkout across additional Copilot devices and channels, signaling a broader push toward AI-first commerce experiences where conversation, decision-making, and payment converge in a single interface.
