PayPal Enables Checkout Inside Microsoft Copilot
PayPal Powers Microsoft Copilot Checkout, Bringing AI-Native Commerce to Life
PayPal has been integrated into Microsoft’s Copilot Checkout, allowing users to discover products, make purchase decisions, and complete payments directly within the Copilot interface.
The initial rollout begins on Copilot.com, where PayPal supports merchant inventory surfacing, branded checkout experiences, guest checkout, and credit card payments without redirecting users to external sites.
How Copilot Checkout Is Structured
Formal submission of a de novo bank application: The OCC filing represents the formal request to establish a new federally regulated bank in the US, following preparatory regulatory engagement that began in 2023.
Sequenced regulatory approach: The banking license application follows approval of a US broker-dealer license, indicating a phased strategy to secure regulatory permissions supporting broader financial services.
Initial geographic rollout strategy: Upon approval, services are expected to begin in US metropolitan areas with significant expatriate populations, reflecting a targeted rather than nationwide launch.
Cross-border banking functionality focus: The proposed US offering includes access to both US and European checking accounts, subject to eligibility, alongside mechanisms to support credit profile building for new US residents.
Integration of existing European operating model: The application outlines plans to extend established digital banking capabilities, including secure payments and fraud prevention systems, into the US market under local regulation.
Expansion within a broader global roadmap: The US filing coincides with continued international expansion efforts, including growth across European markets and parallel pursuit of additional licenses in other jurisdictions.
Why It Matters
Copilot Checkout enables transactions directly within Copilot, with planned expansion to additional devices and environments where Copilot is available.
Buyers and merchants gain access to multiple funding options and eligible PayPal buyer and seller protections, reducing friction and uncertainty during checkout.
Data from Copilot shopping journeys shows 53% more purchases occurring within 30 minutes of interaction, with conversion rates 194% higher when shopping intent is present compared to journeys without Copilot.
The shopping experience operates at scale, drawing from a network of over 192,000 merchants, increasing product availability and choice within a single AI-assisted interface.
