AI startup Perplexity announced on Wednesday that it will launch a free AI-powered shopping feature for U.S. users next week. The tool is described as “agentic,” which means that users will be able to purchase items directly from the answers provided in search results. “Most people want to still do their own research. They want that streamlined and simplified,” said Dmitry Shevelenko, the company’s Chief Business Officer, in an interview with CNBC. To help with this launch, Perplexity has partnered with payment giant PayPal (PYPL).
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This new tool builds on Perplexity’s earlier paid feature, “Buy With Pro,” which was introduced last year. The free version promises to better understand when a user is looking to shop and will offer more personalized results by using information from past searches. Unlike the earlier version, where Perplexity handled the transactions, PayPal merchants will now take over those responsibilities, including purchases, customer service, and returns. The company hasn’t said whether it will earn revenue from purchases made through the platform, but PayPal’s buyer protection policies will apply to transactions on Perplexity.
The move puts Perplexity in competition with OpenAI (PC:OPAIQ), which rolled out a similar shopping feature called Instant Checkout in September. That tool allows ChatGPT users to buy items directly within the chatbot and includes partners like Etsy (ETSY) and Shopify (SHOP). OpenAI also recently partnered with PayPal and will allow PayPal users to buy and sell through ChatGPT starting next year. Michelle Gill, who leads PayPal’s agentic strategy, said that the company has been building the systems needed to support this new type of shopping experience.
Is PayPal Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PayPal stock based on 11 Buys, 16 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PayPal price target of $82.86 per share implies 39.4% upside potential.
