PayPal Acquires Israeli AI E-commerce Firm Cymbio to Enhance Merchant Sales

In a bold move to integrate advanced AI and e-commerce capabilities, PayPal has announced the acquisition of Tel Aviv-based Cymbio, a company specializing in empowering merchants to sell products through AI chatbots. This strategic purchase aims to expand PayPal's agentic commerce offerings, enabling brands to make their catalogs discoverable on cutting-edge AI platforms, hence improving the overall retail experience. The acquisition, for which the terms remain undisclosed, is anticipated to close in H1 2026. Cymbio's technology, which is already supporting notable brands like Abercrombie & Fitch and Fabletics, aligns with PayPal’s expansion into platforms such as Perplexity, Microsoft Copilot, and anticipates integration with ChatGPT and Google Gemini. The merger is set to bolster merchants' outreach, potentially increasing sales by tapping into PayPal's vast user base and leveraging their secure payment processing infrastructure. The partnership with Perplexity, in particular, underlines PayPal’s commitment to pioneering conversational commerce, with plans for U.S. users to execute instant payments via PayPal or Venmo directly within chat interfaces commencing in the upcoming summer.