PayPal is taking a bold step into the future with its agentic commerce initiative, aiming to transform the way consumers shop online. The company, in partnership with Perplexity, has launched a free agentic shopping app that allows users to purchase from over 5,000 merchants. Leveraging past search insights, the platform delivers personalized product recommendations, streamlining the shopping experience for U.S. consumers just ahead of the holiday season.

What Is Agentic Commerce?

Agentic commerce represents a new era of AI-driven shopping, where intelligent agents act on behalf of consumers. These AI agents discover, compare, and purchase products, anticipating consumer needs and automating transactions. They can negotiate deals across multiple platforms, creating a frictionless, seamless shopping experience.

PayPal’s launch positions the company at the forefront of this AI commerce revolution. Its network of over 400 million active accounts and operations in more than 200 markets provide a strong foundation for scaling agentic commerce globally.

PayPal’s Strategic Partnerships

PayPal’s ecosystem for agentic commerce relies on collaborations with key AI and e-commerce players. Partners include OpenAI, Google Cloud, Wix, Cymbio, Commerce (BigCommerce and Feedonomics), and Shopware. Together, these companies ensure that PayPal’s platform delivers secure, scalable, and user-friendly AI commerce experiences for both merchants and consumers worldwide.

Through these partnerships, PayPal integrates AI into the shopping workflow, offering predictive search, personalized recommendations, and automated checkout, while maintaining security standards that protect consumer data.

Competition in Agentic Commerce

Other industry players are also embracing AI-driven shopping:

• Mastercard (NYSE:MA) launched the Mastercard Agent Pay program in September 2025, enabling U.S. cardholders to shop online via AI agents. With collaborations with Stripe and Google, Mastercard developed Insight Tokens to provide personalized, secure experiences in agentic commerce.

• Shopify (NASDAQ:SHOP) introduced its Commerce Assistant Agent framework in mid-2025, allowing developers to embed AI agents in workflows for merchandising and customer support. Integrated with OpenAI and Stripe’s Agentic Commerce Protocol, Shopify enables in-chat AI purchasing for a seamless checkout experience.

These developments indicate that agentic commerce is becoming a key battleground for fintech and e-commerce companies, and PayPal is positioning itself as a leader.

PayPal Stock Performance and Valuation

Despite its innovations, PayPal (NASDAQ:PYPL) shares have declined 29.3% year-to-date, underperforming the broader financial transaction services industry and the S&P 500 Index. However, from a valuation perspective, PYPL stock is trading attractively. Its forward 12-month P/E ratio is 10.37x, well below the 19.74x industry average, and it earns a Value Score of A according to Zacks Investment Research.

Zacks also reports upward revisions for PayPal’s earnings estimates. The Zacks Consensus Estimate for 2025 EPS suggests 14.8% growth year-over-year, reflecting optimism about the company’s agentic commerce strategy and future revenue streams.

Why PayPal Agentic Commerce Matters

PayPal agentic commerce represents more than a technology upgrade—it signals a strategic evolution of digital payments and e-commerce. By integrating AI-powered shopping agents, PayPal enhances user experience, drives merchant engagement, and strengthens its competitive position against companies like Shopify and Mastercard.

For investors, PYPL stock offers a combination of innovation potential, low valuation, and growth in AI-enabled commerce. As agentic commerce adoption expands, PayPal could see increased transaction volumes, higher user engagement, and stronger long-term profitability.

In conclusion, PayPal’s move into agentic commerce positions it as a leader in AI-powered shopping, creating opportunities for consumers, merchants, and investors alike. The company’s strong network, strategic partnerships, and compelling valuation make PYPL a stock to watch as this new commerce revolution unfolds.

Looking ahead, PayPal’s agentic commerce strategy could expand beyond the U.S., leveraging its global network to reach new markets. Continued AI innovation, combined with strong partnerships and a robust merchant base, may drive higher transaction volumes and deeper consumer engagement, positioning PYPL stock for potential long-term growth in the evolving digital commerce landscape.

Featured Image: Megapixl ©Andreistanescu

Please See Disclaimer