SAN JOSE — PayPal Inc. (NASDAQ:PYPL), a fintech leader with a market capitalization of $67 billion and annual revenue of $32.3 billion, launched its agentic commerce service on Tuesday, introducing a solution designed to help merchants connect with customers through an AI-powered shopping platform. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
The new offering includes two key components: “agent ready,” a payment solution that allows merchants to accept payments on the AI platform, and “store sync,” which enables product catalogs to be discovered within the AI shopping channel.
Through strategic partnerships with Wix, Cymbio, Commerce (BigCommerce & Feedonomics), and Shopware, PayPal store sync will enable merchants to make their product data discoverable on AI platforms including Perplexity.
“AI is driving the next wave of innovation in how payments are made and managed,” said Michelle Gill, GM of Small Business and Financial Services at PayPal, according to a company press release.
This service builds on PayPal's existing payments infrastructure and will include fraud detection, buyer protection, and dispute resolution capabilities. The company stated that merchants will retain control over brand visibility and customer communications for transactions initiated through AI agents.
PayPal merchants can sign up for store sync starting Tuesday, with registration available soon. The company indicated that merchant discoverability on Perplexity will be available before the end of 2025, while the agent-ready payments solution is scheduled for release in early 2026.
This initiative represents PayPal's effort to position itself in the emerging AI-driven commerce landscape, with the company noting that a single integration could enable merchants to be visible across multiple AI shopping platforms. Based on InvestingPro's Fair Value analysis, PayPal's stock currently appears undervalued, suggesting upside potential for investors interested in the company's AI-driven growth strategy. For detailed valuation metrics and expert analysis, explore PayPal's comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, PayPal announced plans to adopt the Agentic Commerce Protocol to enhance payment capabilities within ChatGPT by 2026. This integration will allow users to make purchases directly through the AI platform, connecting millions of merchants across various retail categories. In another development, stablecoin issuer Paxos mistakenly minted $300 trillion worth of PayPal's PYUSD stablecoin, which was quickly remedied by burning the excess tokens. On the analyst side, Jefferies maintained its Hold rating and $70 price target for PayPal, citing concerns about growing branded payment volume. Goldman Sachs downgraded PayPal from Neutral to Sell, also setting a $70 price target, citing anticipated transaction margin challenges. These challenges include interest rate pressures and the effects of a re-acceleration of previous credit products. Meanwhile, Coinbase launched a new business payment tool using the USDC stablecoin, a contrast to PayPal's recent developments. Overall, these events highlight a significant strategic and operational shift for PayPal and its position in the market.
No comments:
Post a Comment