Now loading...
In a landmark collaboration with Google, PayPal announced on Tuesday the expansion of its PayPal Honey browser extension to include innovative features geared toward AI chatbot users. These enhancements aim to streamline the shopping experience for consumers seeking product information and deals while using advanced artificial intelligence capabilities.
With the new functionality, when users pose shopping inquiries to their chosen AI chatbot, the Honey extension will showcase a curated selection of recommended products, complete with current pricing details, different merchant options, and exclusive offers. This technology also boasts the ability to recognize and fill gaps in the AI’s recommendations, highlighting additional retailers that may have been overlooked.
PayPal underscores that these improvements aim to empower consumers by facilitating easier price comparisons while concurrently promoting increased sales for merchants through personalized deals. The integration of these agentic shopping features is designed to be inclusive of various AI systems; however, the initial rollout will focus on compatibility with OpenAI’s ChatGPT, with plans to incorporate more platforms in the future.
This development is part of a broader strategy by PayPal to improve its agentic commerce capabilities, which include not just enhancements to Honey but also an array of initiatives such as remote server capabilities and collaborations with various tech providers. For example, users will soon have access to a free year of Perplexity’s premium service and complimentary use of a new browser called Comet.
However, as AI technology continues to evolve, the competition is intensifying. OpenAI recently unveiled its own shopping system that challenges established platforms like Amazon and Google, including a feature for instant checkout. While currently focusing on Etsy, OpenAI has intentions to expand its offerings to Shopify, indicating a shift in consumer behavior where shopping research might increasingly begin within AI chat interfaces rather than traditional web platforms.
This push for enhanced AI capabilities comes at a pivotal moment for PayPal Honey, which has faced scrutiny following allegations of unethical practices related to influencer sales. A recent controversy surfaced when a YouTuber claimed that Honey claimed credit for revenue generated by influencers, leading to multiple lawsuits against the company. As it seeks to improve its standing, the rollout of these features could signify a strategic pivot aimed at regaining consumer trust and adapting to a rapidly changing marketplace.
