Copilot Checkout signals Microsoft’s push into agentic commerce

Microsoft has taken a decisive step towards embedding agentic commerce directly into generative AI, partnering with PayPal, Stripe and Shopify to launch Copilot Checkout.

Microsoft’s push into agentic commerce

The initiative allows shoppers to complete purchases discovered within Microsoft’s Copilot interface without being redirected to an external website, compressing discovery, decision and payment into a single conversational flow.

Initially rolling out in the US, Copilot users can already purchase products from merchants on platforms such as Etsy, as well as fashion retailers including Urban Outfitters and Anthropologie, all from within the chat environment.

Stripe’s agentic commerce architecture

For Stripe, the integration highlights a broader strategic push into what it terms “agentic commerce”.

When a Copilot conversation naturally evolves into a shopping moment, a Stripe-powered checkout can surface natively within the chat.

Microsoft passes transaction context to Stripe, which then connects to the merchant using the Agentic Commerce Protocol, an open standard co-developed by Stripe to support AI-driven transactions.

A key innovation is Stripe’s Shared Payment Token. Rather than transmitting raw card credentials, Stripe issues a token that enables payment processing while keeping sensitive data hidden.

Merchants can complete the transaction via Stripe or route it through another provider, while still benefiting from Stripe’s fraud and risk signals—an important concession to merchant choice in an increasingly fragmented payments stack.

PayPal and the reimagining of checkout

PayPal’s role centres on surfacing merchant inventory and enabling branded and guest checkout experiences, including card payments.

Michelle Gill, PayPal’s general manager for small business and financial services, says the collaboration is designed to make AI-led transactions “seamless and reliable” for both sides of the marketplace.

Beyond payments, Copilot is also introducing AI-powered Brand Agents for Shopify merchants, trained on product catalogues to answer detailed questions in a brand-consistent tone.

For retailers, the message is clear: conversational AI is no longer just a marketing tool—it is becoming a fully fledged point of sale.