PayPal’s stock saw a 17% increase in pre-session trading on Tuesday, following the announcement of a technology partnership with OpenAI, which boosted optimism about the company’s future in the digital payments sector.
The stock, listed on the Nasdaq, jumped 16.85% at 4:16 PM Mecca time, after closing Monday’s session at $70.25 (+0.7%).
PayPal stated that users of the ChatGPT model will be able to use its services as a direct payment method at checkout, and PayPal will process payments for sellers who utilize OpenAI’s “instant payment” feature.
In doing so, PayPal joins e-commerce companies Etsy and Shopify, which have announced partnerships with OpenAI to integrate smart payment systems into their digital platforms, according to MarketWatch.
The company also revealed new updates in its Venmo business, expecting to generate revenues of $1.7 billion this year, compared to about $900 million in its last official announcement in 2021, indicating an improvement in profits from peer-to-peer payment services.
