PayPal has updated PayPal Honey, adding new capabilities to transform AI-based shopping challenges into improved experiences.
According to the press release, the new features support shoppers who utilise AI for research and seek a way to compare products across stores while saving money. As 61% of US adults are using AI tools and 46% have positive feelings about AI’s role in online shopping, PayPal Honey aims to offer customers additional safety and value.
New features for PayPal Honey
When asked general questions about products, PayPal Honey’s extension displays items recommended by the chatbot with real-time pricing, merchant options, and exclusive offers. This removes the complexity of shopping within AI conversations. These upgrades come as AI shopping faces conversion issues. While AI-generated traffic to retail sites increases, it remains less likely to convert when compared to traditional shopping methods.
AI experiences are currently designed to answer questions, not shop, as they are not linked into shopping environments and marketplaces. PayPal Honey aims to close this gap with its SKU-level product catalogue, spanning millions of products to match AI-recommended products with live merchant links, current pricing, and cashback offers.
According to PayPal, Honey is evolving from a simple coupon finder to a commerce intelligence platform. It can identify when AI recommendations exclude major retailers and automatically surface deals that may provide greater value. Additionally, the extension offers smart shopping recommendations, including price comparisons and personalised offers based on user shopping patterns, and increased traffic for merchants with the potential to boost engagement and sales through personalised offers. It also supports AI companies with commerce improvements to accelerate user adoption and engagement for shopping.
This move is a step in PayPal's wider agentic commerce mission to connect consumers with merchants and bridge the gap between AI-driven product search, recommendations, and commerce. These new features will be available at no cost to new and existing PayPal Honey users in the US, in time for Black Friday and the holiday shopping season.
