What: PayPal Honey’s new agentic AI feature enables seamless, personalised shopping by integrating real-time recommendations and direct purchasing within the browser extension.

Why it is important: The integration addresses the conversion gap in AI-driven retail, aligning with industry data showing that agentic commerce is reshaping how consumers discover and purchase products.

PayPal’s integration of agentic AI into its Honey browser extension marks a significant evolution in the retail landscape, transforming the way consumers interact with online shopping tools. By embedding real-time product recommendations and direct purchasing capabilities, PayPal Honey bridges the gap between high engagement and low conversion rates that have historically challenged AI-driven retail traffic. This innovation arrives at a pivotal moment, as the 2024 holiday season saw a dramatic surge in generative AI traffic and a growing demand for convenience among time-strapped consumers, particularly parents and millennials. The new feature not only streamlines the shopping journey but also leverages PayPal’s trusted payment network to enhance consumer confidence and transactional security. As agentic commerce becomes a $96-160 billion opportunity, retailers are urged to invest in infrastructure and strategic partnerships to remain competitive. Ultimately, the success of these AI-driven solutions will depend on building trust, ensuring transparency, and delivering a seamless, personalised experience that meets evolving consumer expectations.

IADS Notes: The integration of agentic AI commerce, exemplified by PayPal Honey’s new feature, reflects a profound shift in retail as AI agents automate and personalise the shopping journey. This trend, highlighted in September 2025, is rapidly redistributing power from traditional retailers to digital intermediaries and requires brands to adapt their engagement models (Journal du Net, September 2025). With 38% of global consumers using AI shopping tools by early 2025 (Forbes, March 2025; BoF, January 2025), retailers must invest in infrastructure and partnerships to capture the agentic commerce opportunity, while balancing operational efficiency and customer satisfaction (Journal du Net, July 2025).

Holiday shopping made easier with PayPal Honey agentic AI feature