PayPal Continues to Shape Agentic Commerce with Instant Product Discovery
Wednesday, October 8, 2025
PayPal Honey bridges the gap between discovery and purchase, eliminating AI-based shopping frustrations
SAN JOSE, Calif., Sept. 30, 2025 /PRNewswire/ -- PayPal today announced it is transforming AI-centric shopping queries into seamless buying experiences by adding new capabilities to PayPal Honey. These capabilities help shoppers who use AI for research but struggle to buy because they can't compare products across stores or trust they are saving money.
With 61% of U.S. adults now using AI tools(1) and 46% enthusiastic about AI's impact on online shopping², PayPal Honey can provide consumers with additional value directly in their AI-powered conversations. When users ask, "What are the best televisions that are 55" or larger?" or "Show me highly rated coffee makers," PayPal Honey's extension will display the products that the chatbot recommends with real-time pricing, merchant options, and exclusive offers. The combination of all these features helps remove the hassle from shopping within AI conversations.
"We're witnessing the dawn of agentic commerce, where AI fundamentally reshapes how people discover and buy products. We're evolving AI recommendations into shoppable experiences by leveraging our global two-sided network, vast amounts of data, and tools like PayPal Honey." said Mark Grether, Senior Vice President and General Manager of PayPal Ads, PayPal. "When someone asks a chatbot for the best headphones under $200, they shouldn't have to spend another 20 minutes hunting for those products, comparing prices and searching for discount codes and cashback offers. We're making it simpler for consumers to purchase recommendations for the products they already plan to buy."
These updates come as AI shopping faces a stark conversion challenge: while AI-generated traffic to retail sites has exploded 1,200%(3), it remains less likely to convert compared to traditional shopping methods. Today's AI experiences are designed to answer questions, not shop. While they aren't deeply linked into shopping environments such as retailers or marketplaces, Honey is helping close the gap with the company's expansive SKU-level product catalog, spanning hundreds of millions of products, to immediately match AI-recommended products with live merchant links, current pricing, and exclusive cashback offers.
With these new capabilities, PayPal Honey is evolving from a simple coupon finder to a comprehensive, value-focused commerce intelligence platform. The system can identify when AI recommendations exclude major retailers and automatically surface additional options that may provide greater value to the consumer. Beyond instant product linking, the extension is designed to provide:
-- consumers with smart shopping recommendations including price
comparisons and personalized offers based on user shopping patterns,
-- merchants with increased traffic from purchase-intent consumers, with
the potential to boost engagement and sales through personalized offers,
and
-- AI companies with commerce enhancements to accelerate user adoption and
engagement for shopping
PayPal Honey is another step in PayPal's broader agentic commerce vision, connecting hundreds of millions of consumers with tens of millions of merchants of our two-sided network to bridge the gap between AI-powered product search and recommendations and commerce. In addition, it helps drive more contextually relevant advertising across the open web, providing shopper personalization based on real cross-merchant transaction data.
These new features will be available at no cost to new and existing PayPal Honey users in the U.S. soon, in time for Black Friday and the holiday shopping season. New users can download PayPal Honey at joinhoney.com. These new features will begin rolling out on Google Chrome on desktop with other major browsers to follow in coming months.
(1 )2025: The State of Consumer AI, Menlo Ventures, July 2025.
(2 )What Matters to Today's Consumer, Capgemini Research Institute, January, 2025.
(3) Adobe Analytics: Traffic to U.S. retail websites from Generative AI sources jumps 1,200 percent, Adobe, March 2025
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com and https://investor.pypl.com.
Media Contact:
PayPal Media Relations
MediaRelations@paypal.com
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SOURCE PayPal Holdings, Inc.
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