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PayPal shares pare gains after Meta AI shopping deal

Payments firm will let customers check out through Meta's Muse agent, the latest tie-up between finance and AI shopping tools.

by TechDefused Newsroom
The image features the PayPal logo illuminated against a dark, starry background. The logo is designed with a modern and sleek aesthetic, showcasing a blend of blue shades. — Credit: Photo by Mariia Shalabaieva / Unsplash cPhoto by Mariia Shalabaieva / Unsplash
Photo by Mariia Shalabaieva / Unsplash

PayPal, the US digital payments company, is to let customers check out using Meta's Muse artificial intelligence (AI) agent, extending the shopping assistant across PayPal's network of merchants.

Muse is Meta's personal AI agent, software that can browse stores and complete purchases on a user's behalf.

PayPal shares rose as much as 4.8% on Tuesday after the announcement, before paring the gain to around 2% as the session wore on.

The stock remains down nearly 8% so far this year.

The deal fits a push by PayPal, under chief executive Enrique Lores, to plug its checkout system into emerging AI shopping platforms.

It puts the company alongside Shopify and Stripe among Muse's payment partners, a day after Shopify agreed to bring its Shop Pay service to the agent.

The move came as investors rotated money into technology stocks and out of financials, dragging down wealth managers and banks including Charles Schwab, down 6.7%, Bank of America, down 3.4%, and Morgan Stanley, down 3.5%.

For PayPal, the test is whether such partnerships can be turned into lasting revenue and wider margins, something investors will weigh against its turnaround targets over the rest of 2026.

by TechDefused Newsroom