Microsoft and PayPal have officially joined forces to launch Copilot Checkout, a groundbreaking integration that redefines the online shopping experience. This collaboration merges Microsoft’s conversational AI capabilities with PayPal’s trusted payment infrastructure, creating a seamless journey from product discovery to purchase all within the Copilot interface on Windows, app and the Web.
Intelligent Discovery Meets Trusted Payments
Copilot Checkout will allows users to browse, evaluate, and complete purchases (check out) directly from within Microsoft Copilot experience, eliminating the need to switch between different apps, devices or websites. By embedding PayPal’s agentic commerce services, the experience becomes not only faster but also more secure and flexible.
Key Features of Copilot Checkout
- Conversational Shopping: Users interact with Copilot to explore products, compare options, and make informed decisions.
- Integrated Payments: PayPal will power the end to end checkout flow, offering branded and guest checkout, credit card support, and even PayPal wallet integration.
- Merchant Enablement: Retailers are able to surface and promote inventory, and reach high-intent customers at the moment of decision without loosing to the “buy later crew”
Benefits for PayPal sellers and consumers
For sellers:
- Let’s them reach customers during high-intent moments
- Reduce friction and cart abandonment and avoids the buy later mind set.
- Expand visibility across Microsoft touch points such as Bing, Edge, and of course Copilot.
For Consumers:
- Enables fast, flexible and in the moment checkout options (Amazon experience)
- Stay within the Copilot experience from start to finish to ensure customers do not have to shift platforms, devices or apps.
- Benefit from PayPal’s buyer protections and payment versatility.
Early Adoption and Ecosystem Impact
In this early stage of the partnership the early adopters include major brands including Etsy and Urban Outfitters.
What’s more Shopify merchants are auto-enrolled, while PayPal and Stripe sellers can opt in for this experience (Microsoft will need to convince them and sell the value).
This rollout marks a significant step in the evolution of agentic e-commerce, where AI agents act on behalf of users to simplify and accelerate transactions.
PayPal and Microsoft Partnership.
In the annoucement, Michelle Gill, GM of Small Business and Financial Services at PayPal, said:
“By integrating PayPal’s agentic commerce services with Copilot’s intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers.”
Kathleen Mitford, CVP of Global Industry at Microsoft shared:
“Retailers can automate what slows them down and amplify what sets them apart.”
What and when?
Copilot Checkout will be come more than just a new hidden feature. Following OpenAI (and expect Google to follow), Microsoft and PayPal are looking to reshape consumer behaviour and drive more footfall to Copilot and PayPal. This is just the start and Microsoft plan to work with other e-commerce providers.
The joint goal is to redefine how brands connect with customers in real time, with intelligence and trust at the core from both PayPal and Microsoft.
For more insights, visit PayPal’s announcement or explore Microsoft’s commerce vision.