PayPal is rolling out a tighter integration between its Honey extension and AI chatbots like ChatGPT, aiming to turn user shopping queries into actionable deals. Honey will supply chatbot users with real-time pricing, product comparisons, merchant options, and special offers when they ask what to buy. This move complements OpenAI’s recently launched “Instant Checkout” feature (in partnership with Stripe), which lets U.S. users buy products directly from Etsy (and soon Shopify merchants) from within ChatGPT conversations—merchants pay a small fee, but users see no extra cost. At the same time, the Honey extension has faced backlash for allegedly overwriting affiliates’ tracking codes—claiming commissions that may rightfully belong to creators—sparking legal and ethical scrutiny. The integration may help Honey regain relevance in a world where AI is becoming the primary shopping interface.
Key Takeaways
– Honey’s new AI integration lets it surface deals and pricing when users ask chatbots for product suggestions, bridging discovery and purchase in one experience.
– OpenAI’s Instant Checkout is pushing commerce fully into AI conversations, starting with Etsy products, and could reshape how e-commerce works.
– The timing is delicate: Honey has been criticized for allegedly hijacking affiliate commissions, so the integration carries both opportunity and reputational risk.
In-Depth
Over the last few years, AI assistants like ChatGPT have become go-to tools for information, conversation, or brainstorming. Now, they’re stepping further into the e-commerce arena. PayPal is betting its Honey extension will help turn shopping advice into real purchases—with less friction and more transparency.
Under the new plan, when a user chats with their preferred AI assistant and asks something like, “What’s a good budget laptop under $700?” or “Cool gift ideas for a cooking fan,” the chatbot will not only return options but also surface live pricing, merchant availability, and promotional offers from Honey. That means shoppers won’t have to split their workflow between conversation and manual browsing. (TechCrunch reported that Honey can also step in when the AI’s own recommendations miss key retailers, giving users more breadth.) Meanwhile, OpenAI is rolling out Instant Checkout—a feature that lets U.S. users complete direct purchases from Etsy within ChatGPT itself. Payment is handled via Stripe under the hood, and merchants pay a small commission for sales made. The process is designed so that ChatGPT remains a neutral intermediary: product ranking is “organic and unsponsored,” and merchants continue to manage fulfillment and support. The architecture is based on a new open standard called the Agentic Commerce Protocol, jointly developed with Stripe, which enables AI agents, shoppers, and merchants to transact in a secure, modular way.
It’s a bold shift. Instead of just being a source of suggestions, AI tools may become the first touchpoint for shopping decisions. That kind of shift challenges the traditional flow—users go from query to checkout in minutes, rather than toggling across tabs, price-comparing, and switching sites.
However, the move comes on shaky ground for Honey. Not long ago, the extension was accused of manipulating affiliate attribution: critics claimed Honey would overwrite creators’ affiliate links and claim commissions even when its coupon suggestions did little to help users. That practice ignited legal threats and reputational damage. Some creators argue their rightful commissions were reassigned to Honey without clear consent. Critics say this kind of behavior undermines trust in the affiliate ecosystem.
For PayPal and Honey, integrating with AI commerce offers both opportunity and risk. On the upside, they gain relevance in a market where AI is increasingly the interface for discovery. Users may lean more on their chatbot for shopping decisions, and Honey’s presence in that flow could ensure it remains part of the process. On the downside, the shadow of past controversies means every recommendation and commission must be handled transparently—and mistakes could erode user trust fast.
In sum, PayPal’s Honey is trying to evolve from a coupon finder into a richer commerce intelligence layer, while OpenAI’s Instant Checkout is attempting to make chat itself the storefront. The next few months will tell whether users, merchants, and creators accept the shift—or push back.