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PayPal to Expand Agentic Commerce: Will it Boost Revenue Growth?

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Key Takeaways

  • PayPal agreed to acquire Cymbio, with the deal expected to close in the first half of 2026; terms undisclosed.
  • PYPL will integrate Cymbio to power Store Sync, making product data discoverable across AI channels.
  • PYPL partners with Microsoft to launch Copilot Checkout, and expands agentic commerce across other platforms.

PayPal Holdings, Inc. (PYPL - Free Report) announced it has agreed to acquire Cymbio, a platform for multi-channel orchestration that enables brands to sell across agentic surfaces like Microsoft Copilot and Perplexity, as well as other e-commerce channels. Subject to customary closing conditions, the transaction is expected to close in the first half of 2026, with deal terms remaining undisclosed.

This acquisition will enhance PayPal’s agentic commerce services, which enable merchants to attract customers and boost sales amid the rise of AI-driven commerce. PayPal had indeed partnered with Cymbio previously for these services. Integrated into PayPal, Cymbio's team and technology will enable Store Sync, a key agentic commerce service from PayPal. Store Sync makes merchants' product data discoverable in AI-driven channels.

PayPal launched its agentic commerce services in October 2025, featuring Store Sync. The company is heavily investing in AI-driven e-commerce via “agentic commerce,” where autonomous AI agents help consumers discover, compare and buy products.

This month, the company teamed up with Microsoft to power the launch of Copilot Checkout in Copilot, enabling shoppers to discover, decide, and pay entirely within the Copilot interface. PayPal is also partnering with AI platforms, such as OpenAI, Perplexity and Google Cloud.

PayPal's agentic commerce services and checkout options are available for merchants on Microsoft Copilot and Perplexity, with support for OpenAI's ChatGPT and Google's Gemini app and AI Mode coming soon.

How Are Mastercard and Shopify Doing in the Agentic Commerce Space?

Mastercard (MA - Free Report) expanded its startup engagement program, Start Path, to advance agentic commerce and services. The company expanded its partnership with Fiserv to support agentic commerce infrastructure for secure AI-driven payments. MA introduced the Mastercard Agent Pay program, enabling U.S. cardholders to shop online using AI agents securely and seamlessly. It collaborates with Stripe and Google to build agentic commerce infrastructure and standards.

Shopify (SHOP - Free Report) partners with Google to expand the shopping capabilities of Google’s Gemini AI chatbot. It launched its Commerce Assistant Agent framework, allowing developers to embed AI-powered agents into Shopify workflows for tasks like merchandising and customer support. Integrated with OpenAI and Stripe’s Agentic Commerce Protocol, customers can buy directly via AI chats like ChatGPT, enjoying smooth, in-chat checkout experiences.

PYPL’s Price Performance, Valuation & Estimates

Shares of PayPal have declined 18.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 9.85X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 19.44X.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

PayPal’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised downward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests 14.6% growth year over year.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

PayPal currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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