PayPal said on Tuesday (October 29) it entered into a deal with OpenAI that will allow ChatGPT users to buy products using the payment firm's platform, sending its shares up 10%.

The company also raised its profit forecast for the year again, banking on resilient consumer spending, and announced its first dividend in its 27-year history.

PayPal said the OpenAI partnership will connect its global merchant network to ChatGPT, enabling businesses to sell products and services within the wildly popular generative AI app that has more than 800 million weekly active users.

AI shopping tools are emerging as the next big shift in online retail, as they can autonomously research, compare and purchase products for consumers.

These tools act as digital assistants by understanding user preferences

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