PayPal and Perplexity partner for seamless AI shopping

SAN JOSE, Calif. - Perplexity, an AI-powered answer engine, has teamed up with PayPal (market cap: $70.3B) to introduce a streamlined shopping experience on its Perplexity Pro platform. According to InvestingPro data, PayPal stands as a prominent player in the Financial Services industry, generating $31.89B in revenue over the last twelve months. This collaboration, set to launch in the U.S. this summer, will enable consumers to make purchases instantly using PayPal or Venmo when they use Perplexity to find products, book travel, or purchase tickets.

Aravind Srinivas, Cofounder and CEO of Perplexity, emphasized the shared commitment to trust in the AI era, which he considers crucial for users making decisions online. PayPal’s President and CEO, Alex Chriss, highlighted the transformative potential of the partnership, stating that it will facilitate secure shopping within the chat interface when users are inspired to make a purchase. InvestingPro analysis suggests PayPal is currently undervalued, with the company maintaining a strong financial health rating of "GOOD" and showing positive momentum with a 12% return over the past year.

The integration will utilize PayPal’s commerce solutions to offer agentic commerce, allowing transactions to be completed directly through Perplexity’s chat interface. This feature aims to reach PayPal’s extensive user base, which includes over 430 million active accounts across roughly 200 markets. The partnership promises secure transactions by leveraging PayPal’s advanced fraud detection and data security measures.

Perplexity’s service is designed to transform natural language questions into cited answers and actionable results, streamlining the online decision-making process for users. Founded by veterans from OpenAI, Meta, Quora, Bing, and Databricks, Perplexity answers over 150 million questions weekly and offers a startup program with free API credits and Enterprise Pro to eligible startups.

PayPal, a pioneer in digital payments for over 25 years, continues to innovate by providing simple, personalized, and secure financial transactions, empowering consumers and businesses worldwide.

The partnership aims to enhance the online shopping experience by eliminating the need for passwords and simplifying the process to a single user query or click, integrating PayPal’s secure tokenized wallet and emerging passkey checkout flows.

This collaboration is based on a press release statement and represents a significant step in realizing conversational commerce, merging the convenience of instant messaging with the functionality of e-commerce. For investors seeking deeper insights into PayPal’s financial outlook, InvestingPro offers comprehensive analysis, including 8 additional ProTips and a detailed Pro Research Report, helping investors make informed decisions about this financial technology leader.

In other recent news, PayPal Holdings Inc. reported its first-quarter earnings for 2025, exceeding analysts’ expectations for earnings per share (EPS) but slightly missing revenue forecasts. The company posted an EPS of $1.33, surpassing the forecasted $1.16, marking a 23% year-over-year increase. Revenue came in at $7.8 billion, slightly below the expected $7.84 billion. Despite the revenue shortfall, PayPal’s transaction margin dollars grew by 7%, driven by improved margins and tax rates. JPMorgan maintained an Overweight rating for PayPal, with a price target of $90, noting the company’s performance exceeded both its and the broader market’s expectations. KeyBanc Capital Markets maintained a Sector Weight rating for PayPal, highlighting solid performance in transaction margins and EPS. PayPal’s strategic initiatives, including branded product engagement and new checkout onboarding, were noted by analysts as key areas of advancement. The company reiterated its fiscal year 2025 guidance, reflecting cautious optimism amid prevailing economic uncertainties.

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