Perplexity, a fast-growing AI search startup, is teaming up with PayPal to let U.S. users shop directly through chat. Soon, consumers can book flights, buy concert tickets, and order products without leaving the conversation. Payments will be handled instantly using PayPal or Venmo, with shipping, tracking, and customer support fully managed. The move comes as Perplexity finalizes a $500 million funding round at a $14 billion valuation. As competition heats up in the generative AI space, this partnership signals a major step toward “agentic commerce”, where, with AI Chat Shopping, it doesn’t just suggest purchases but also completes them.
The idea of shopping directly within a conversation reflects a growing shift in how people interact with AI. Rather than clicking through dozens of tabs, users now expect AI to complete entire tasks, from finding the right product to checking out, all in one place. For Perplexity, this isn’t just a feature, it’s a strategy to position itself as a true digital assistant, not just a search alternative. By embedding payment and purchase steps into chat, the company is reducing the distance between decision-making and action, a change that could redefine how online commerce works.
AI Chat Meets One-Click Shopping
The new feature allows users to complete purchases inside Perplexity’s AI chat, eliminating the need to open other apps or re-enter payment details. PayPal’s system verifies both buyer and seller identities, autofills shipping and billing info, and uses passkey technology for one-click checkout. This integration builds on Perplexity’s earlier move into e-commerce, which began with product listings and Shopify links for paying users. Now, the process becomes fully interactive and seamless. “Our vision for assistive AI is that everything just gets better and easier for people,” said Ryan Foutty, Perplexity’s vice president of business. “We want to be there when they’re making decisions.”
Agentic Commerce Gains Ground, But Faces Hurdles
AI chat shopping is growing fast. According to Salesforce, the number of buying decisions influenced by chat jumped 42% last year. Global sales linked to AI hit $229 billion during the 2023 holiday season, up from $199 billion the year before. Still, some challenges remain. Privacy concerns, potential errors, and questions about accountability in AI-led purchases are unresolved. Meanwhile, rivals like OpenAI, Google, and Anthropic have focused more on AI-powered search than direct commerce. But PayPal’s tech chief Srini Venkatesan, believes this is the future. “Agentic commerce is not just the searching,” he said. “It’s the buying, the paying, the entire transaction, all within the agent.”
As this new model of “agentic commerce” grows, other tech firms are taking note. Stripe and Mastercard are exploring similar integrations, though most are still focused on checkout tools rather than end-to-end AI-led shopping. Analysts say Perplexity’s move could give it a brief edge, especially if OpenAI or Google delays similar features. But the space is volatile. Success will depend on speed, trust, and user comfort with AI making real-world decisions. For now, PayPal’s backend support offers Perplexity a credible foundation, but the race to own AI-driven commerce is far from settled.
Will AI Agents Redefine How We Shop?
Perplexity’s chat commerce partnership with PayPal could mark a shift in how people shop online. By merging search, decision-making, and payment into a single interaction, the companies are betting on convenience over clicks. But as AI agents gain more control over purchasing, questions around data privacy, transparency, and consent will grow louder. Regulators and consumers will need to keep pace. For now, though, the race to simplify shopping has a new front-runner, and it talks like a friend in your pocket.
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