PayPal is integrating its Honey browser extension with ChatGPT and other AI tools to make online shopping faster, smarter, and more personalized.
TLDR:
- PayPal Honey now connects with ChatGPT to deliver real-time product pricing, merchant links, and discount codes inside AI chats.
- The move addresses AI’s conversion gap by turning product recommendations into shoppable experiences.
- This is part of PayPal’s agentic commerce vision, which includes partnerships with Google and Perplexity.
- The features are launching in time for the 2025 holiday season, targeting convenience-hungry shoppers, especially parents and millennials.
What Happened?
PayPal has updated its Honey browser extension to integrate directly with ChatGPT and other AI platforms. This new feature allows AI chatbot users to view real-time pricing, exclusive offers, and product recommendations from Honey without leaving their AI conversation. The rollout is aimed at solving the long-standing gap between product discovery and purchase that plagues AI-driven shopping.
Old Playbook: Searching all over the internet for the best price and coupon code
— PayPal (@PayPal) September 30, 2025
New Playbook: Using PayPal Honey to find the best deals, even when getting recommendations from AI
Shop smarter, faster, and get the best deals.
Coming soon for the holidays:… pic.twitter.com/gxHthBgyJu
PayPal Honey Gets Smarter with AI Integration
PayPal is stepping firmly into the world of agentic commerce, where AI doesn’t just suggest products but facilitates the entire buying journey. By enhancing the PayPal Honey extension, users will now receive shopping insights and live pricing directly in AI chat environments like ChatGPT. The extension detects when a user asks shopping-related questions and immediately surfaces helpful data:
- Real-time prices from multiple merchants
- Smart comparison tools
- Coupons and cashback offers
- Merchant links for direct purchase
According to PayPal, this approach helps bridge a crucial conversion gap. While AI-generated traffic to retail sites has spiked 1,200 percent, it converts at a lower rate compared to traditional shopping methods. Honey is stepping in to close that gap by turning casual research into real purchases.
Built for the Era of Agentic Commerce
PayPal is positioning Honey as more than just a coupon finder. It’s becoming a commerce intelligence tool that benefits not only consumers but also merchants and AI developers.
For Consumers:
- Quick access to trusted product data inside AI chats.
- No need to leave the chatbot to compare or check prices.
- Personalized offers and discounts based on past behavior.
For Merchants:
- Increased exposure to purchase-intent users.
- Opportunities to offer exclusive deals.
- Higher engagement and conversion rates.
For AI Companies:
- More contextually relevant recommendations.
- Faster adoption and deeper engagement.
Why This Matters for the Holidays?
The update comes just in time for the 2025 holiday shopping season. With 61 percent of U.S. adults using AI, and parents emerging as power users (79 percent vs. 54 percent of non-parents), PayPal is tapping into a demographic that craves convenience.
Whether it’s buying gifts on a time crunch or searching for the best tech deals, the integration allows shoppers to move from product discovery to checkout without ever opening a new tab.
Agentic Commerce: Big Potential, Big Responsibility
Experts say this new wave of shopping represents a $96 to $160 billion opportunity in 2025. But it’s not without challenges. According to Mike Cassidy from Signifyd, data transparency and security will be critical in building trust. Retailers must ensure users understand how AI arrives at its recommendations and protect their personal data.
Companies that want to thrive in this environment must prepare across departments: from marketing and merchandising to fraud prevention and customer support. “The important thing for brands is to make sure they are not behind the curve,” Cassidy said.
What TechKV Thinks?
I really like what PayPal is doing here. They’re not just slapping AI onto an existing product and calling it a day. They’re genuinely trying to make shopping easier and smarter, especially for those of us who are tired of bouncing between sites to find the best price or promo code. The integration with ChatGPT is smart, and the timing couldn’t be better. With the holidays around the corner, this could save people hours of scrolling and searching. If this is where online shopping is headed, I’m here for it.
