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(Sharecast News) - PayPal surged on Tuesday as it upgraded full-year guidance and announced a payments wallet deal with OpenAI's ChatGPT.
The company said it will adopt the Agentic Commerce Protocol (ACP) to expand payments and commerce in ChatGPT.
Millions of ChatGPT users will be able to check out instantly using PayPal, and PayPal will support payments processing for merchants leveraging OpenAI Instant Checkout.
As part of the deal, PayPal will also connect its global merchant network to OpenAI, creating a platform for tens of millions of small businesses and the largest brands in the world to sell within ChatGPT.
President and chief executive Alex Chriss said: "Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop.
"By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases."
News of the agreement came alongside third-quarter results, in which the company upgraded its guidance for the year.
PayPal now expects 2025 adjusted earnings per share of $5.35 to $5.39, up from previous guidance of $5.15 to $5.30.
Alex Chriss said: "PayPal delivered another strong quarter and we are raising guidance, with broad-based profitable growth across branded experiences, PSP, and Venmo. We have returned the company to growth and are on pace for 6% to 7% transaction margin dollar growth in 2025 when excluding interest on customer balances.
"We are also building for an agentic future, partnering with leaders such as Google, OpenAI, and Perplexity. This is a stronger company today than we were two years ago. With differentiated competitive advantages, clear strategic direction and building execution momentum, we believe we are exceptionally well-placed to win into the future."
At 1355 GMT, the shares were up 9.6% at 77.52p.
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