PayPal partners with Microsoft to support the launch of Copilot Checkout

Yesterday, PayPal officially announced that it has partnered with Microsoft to support the launch of Copilot Checkout in Copilot. This partnership will allow users to shop and pay without ever leaving the Copilot experience.

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 will power surfacing merchant inventory, branded checkout, guest checkout, and credit card payments, starting with Copilot.com. Merchant’s product catalogs will seamlessly become purchasable, leveraging PayPal’s store sync, a capability of PayPal’s recently launched agentic commerce services, which are designed to allow merchants to attract customers and future-proof their business in the new era of AI-powered commerce.

“Collaborating with Microsoft marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences. By integrating PayPal’s agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers,” said Michelle Gill, GM of Small Business and Financial Services, PayPal. “Together, we’re unlocking more meaningful, trusted connections across the commerce ecosystem and shaping the future of intelligent shopping.”

A user can now browse curated, shoppable results- completing their purchase with PayPal. It will unlock purchasing across Copilot.com, with plans to extend to more devices and channels where Copilot is available. There will be multiple funding options, including PayPal Wallet. Consumers and merchants benefit from PayPal’s seller and buyer protections on eligible transactions in Copilot Checkout.

The first retailer to implement this PayPal and Copilot integration is Ashley Global Retail, which allows people to browse and purchase furniture by simply talking with Copilot.

This integration marks the latest development in AI-powered shopping experiences, combining Microsoft’s intelligent discovery with PayPal’s trusted commerce and payments capabilities to create streamlined end-to-end experiences. Merchants interested in powering agentic experiences through Copilot Checkout can sign up by visiting PayPal.ai.