PayPal Boosts Honey with AI Shopping

PayPal has introduced new AI-driven shopping features in its Honey extension, aiming to connect AI product queries directly with merchants, pricing, and discounts. PayPal designed this system so that when a user asks a chatbot about a product, Honey can display the recommended items, current prices, merchant choices, and cashback offers within the same interaction. PayPal states this is achieved by linking AI outputs to its massive SKU-level catalog covering millions of products.

According to PayPal, Honey identifies retailers that AI might overlook, compares pricing across sellers, and highlights extra offers. For example, when someone asks about “the best televisions that are 55 inches or larger,” Honey can provide product links, real-time pricing, and discounts. PayPal explained that this will first be available in the U.S. through Chrome, with other browsers added later, just in time for Black Friday and the holiday season.

Mark Grether, Senior VP of PayPal Ads, said this reflects a new step toward “agentic commerce,” where AI not only recommends products but also helps finalize purchases. PayPal emphasized that users should not need to spend extra time searching for promo codes, comparing stores, or confirming cashback, since Honey will integrate all of these functions.

The company highlighted that AI-driven shopping traffic has grown by 1,200%, but conversion rates are lower than traditional shopping. PayPal aims to close this gap by linking AI suggestions directly to real purchases. PayPal also acknowledged competition from other platforms, such as Shopify, which has integrated merchant catalogs into AI systems, and from major retailers forming partnerships with AI providers. PayPal views Honey as its bridge to merge product discovery with live transactions.