The tech company also unveiled Brand Agents, AI-based shopping assistants that act as the voice of the brand within online stores.
Microsoft and PayPal have announced their collaboration to launch Copilot Checkout , a new solution that allows users to discover, compare, and purchase products without leaving the Copilot conversational experience.
The goal is twofold: for the user, it aims to reduce friction in the purchasing process and shorten the gap between intent and conversion; for the online store, it seeks to simplify its adaptation to the world of artificial intelligence and reduce abandoned shopping carts . All within Microsoft's AI assistant.
As Mike Edmonds , Vice President of Agentic Commerce at PayPal, explains , “This partnership will help our vast ecosystem of tens of millions of merchants grow efficiently, while offering consumers a pleasant and intuitive shopping experience when paying with PayPal.”
The announcement comes alongside another significant development for eCommerce: the launch of Brand Agents, AI-powered shopping assistants that act as the voice of the brand within its own website. These two moves point in the same direction: converting conversations into sales precisely when the user is already making a decision.
Copilot Checkout makes shopping seamless and distraction-free
Copilot Checkout lets you complete a purchase directly within Copilot, without redirects, multiple tabs, or losing the user along the way. The shopper can ask questions, compare options, get answers, and pay all within the same conversation, leveraging PayPal's payment infrastructure.
From a commercial perspective, the brand remains the official seller and maintains control over the transaction , customer data, and business relationship. This allows it to leverage the new channel without relinquishing customer ownership or brand identity.
PayPal is responsible for boosting merchant inventory, branded payments, guest checkout, and card or PayPal Wallet payments, starting with Copilot.com and with plans to expand to other channels where Copilot is already present.
The initial results show a direct impact on conversion . According to Microsoft data, journeys that included Copilot generated 53% more purchases within 30 minutes of the interaction compared to those that did not. Furthermore, when there was purchase intent, journeys with Copilot were 194% more likely to result in a purchase.
Shopify stores are automatically integrated
The partnership between Microsoft and PayPal combines AI-powered discovery with a payments infrastructure widely familiar to consumers and merchants. Copilot is no longer just a tool for finding information; it's integrated throughout the entire purchase journey, from inspiration to final payment.
Copilot Checkout is now available in the United States , with partner activation at PayPal, Shopify, and Stripe, and more retailers joining throughout the month.
In the case of Shopify, businesses will be able to automatically sell through Copilot Checkout without needing to develop additional integrations or install new applications.
Looking ahead , the company is already working with Mastercard and Visa to include solutions such as Mastercard Agent Pay and Visa Intelligent Commerce.
Brand Agents bring the in-store experience to eCommerce
Alongside the launch of Copilot Checkout, Microsoft is introducing Brand Agents , AI-powered shopping assistants that integrate into online stores and guide the user naturally, just like a good salesperson would in a physical store.
Brand Agents rely on Microsoft Clarity, Microsoft's free analytics tool that allows them to analyze user behavior through heat maps, session recordings, and performance metrics.
This provides eCommerce businesses with an additional layer of information to understand how AI-assisted conversations work, compare them with organic traffic, and adjust their business strategy with real data.
How to get started with Copilot Checkout
Copilot Checkout is initially rolling out in the United States on Copilot.com and leverages existing integrations with major eCommerce and payment platforms. If you have an eCommerce business in the United States, here's what you need to know to use the feature:
- Shopify stores are automatically enrolled in Copilot Checkout after an opt-out period. You don't need to install any apps or develop any additional integrations. Checkout management is handled directly from your Shopify dashboard.
- If you work with PayPal or Stripe You can request to join Copilot CheckoutMicrosoft is betting on open standards to facilitate rapid and scalable adoption.
- It's not mandatory, but having a product feed in Microsoft Merchant Center It helps items appear organically within Copilot, expanding visibility from the start of the purchase process.
How to get started with Brand Agents
Brand Agents is now available for businesses selling on Shopify and, as we explained, it relies on Microsoft Clarity for performance analysis. Therefore, if you want to start using this option, the first step is to install Microsoft Clarity on your eCommerce site—a free tool compatible with Shopify.
Once you have Clarity activated, you can join the waitlist directly from the platform to access Brand Agents. If you already use Clarity, the process is immediate.
The final step is to configure your brand's voice and catalog, as Brand Agents are trained with this information to deliver consistent recommendations and conversations aligned with the store experience.
Towards integrated and conversational buying
With Copilot Checkout and Brand Agents, Microsoft and PayPal are reinforcing a trend that was already gaining traction. Shopping is becoming conversational, contextual, and increasingly integrated with AI assistants. For merchants, the opportunity lies in appearing precisely when the user moves from interest to action.
Now the question is which brands will appear in the search results and which stores will be prepared to sell within these new experiences, taking advantage of this channel that is already part of consumers' daily lives.
Original article by Noelia Fraguela | Marketing4ecommerce | January 9, 2026
