PayPal has announced new capabilities for its Honey extension that connect AI-powered shopping queries with live product listings and pricing.

According to the company, the Honey extension will insert shopping information into AI conversations. When a user asks a chatbot for product recommendations, Honey can show the exact products the chatbot suggests, then add current prices, merchant options, and available cashback or exclusive offers within that same chat interaction. The company says this works by linking AI outputs to its SKU-level product catalog that spans hundreds of millions of items.

PayPal says Honey will match recommended items to live merchant links, compare prices across sellers, and surface extra options if the AI leaves out major retailers. For example, a user asking a chatbot about “the best televisions that are 55 inches or larger” could see Honey surface product links, pricing from different retailers, and available discounts in real time.

Rollout ahead of the holiday season

The features will first launch in the U.S. on Chrome for desktop. Other browsers will follow, with the rollout timed ahead of Black Friday and the holiday season.

PayPal’s push toward agentic commerce

Mark Grether, Senior VP of PayPal Ads, said the move reflects a shift toward what the company describes as “agentic commerce,” where AI plays a role in product discovery and purchase decisions.

He explained that consumers should not have to spend additional time searching for discount codes, comparing merchants, or validating cashback offers once they already know what they want.

This trend is drawing attention because AI-driven retail traffic has increased significantly. PayPal cited a 1,200 percent increase, but the company says these visits convert into sales at lower rates than traditional shopping.

Other companies are also experimenting in this space. For example, Shopify recently expanded integrations that bring its merchants’ catalogs into ChatGPT, and major retailers are forming partnerships to ensure their products appear in AI search. PayPal’s move with Honey fits into this shift. The company is aiming to bridge AI product recommendations with real transactions.

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