SAN JOSE, Calif. — PayPal is preparing its payments platform for a future in which artificial intelligence agents make purchases on consumers’ behalf, even as the company seeks to increase checkout activity, expand use of its financial products and reduce operating costs.
CEO Enrique Lores said during PayPal’s third-quarter earnings call that transactions between AI agents representing shoppers and merchants will require safeguards to verify both sides.
“If you think about consumer agents buying from merchant agents, both will have to validate that this is a real consumer who can pay and a real merchant that has the product,” Lores said.’
Responding to an analyst’s question, Lores said PayPal is working with Meta and other AI companies to integrate its payment services into personal AI agents.
AI Already Handling Customer Service
PayPal said its AI-supported customer service agents operate across 190 countries and six languages and have resolved more than 24 million customer contacts so far this year.
The AI initiatives come amid a broader restructuring. According to PayPal’s third-quarter earnings presentation, the company has reduced its workforce by more than 2,000 employees and eliminated three management layers across most of its operations.
PayPal is targeting at least $1.5 billion in gross annualized savings over the next two to three years, although it plans to reinvest a substantial portion of those savings.
Focus on Existing Customers
The company’s consumer strategy emphasizes getting existing customers to use more of its services, including buy now, pay later financing, debit and credit cards and merchant lending.
Management expects those financial services to account for more than 20% of transaction margin dollars in 2026 and to post double-digit growth. Lores said customers using financial services generate higher average revenue per account, making adoption and retention important measures alongside monthly activity.
PayPal reported a 25% increase in buy now, pay later payment volume. The company has expanded availability through merchants including Amazon in Germany and Austria and plans to offer cards that allow installment payments for in-store purchases.
Venmo’s debit card reached 6.7 million monthly active accounts, while its relaunched credit card offers rewards for splitting purchases, according to the company.
PayPal also said it has rolled out its mobile app globally and is moving Venmo authentication to PayPal’s identity platform.
