Holiday shoppers are stressed and overwhelmed, per Accenture’s 19th Annual Holiday Shopping Survey. And this is leading to lower conversion rates: 85% of consumers are likely to abandon their carts due to frustration or indecision, according to the survey. To best meet customer needs quickly, retailers can partner with providers like Checkout.com on its one-click checkout solution Flow Remember Me or PayPal-owned Honey as it integrates AI-powered product recommendations based on users’ conversations with chatbots.

PayPal will use Rokt, an AI marketing service, to power its post-transaction advertisements for users in the US, per a press release. PayPal has for years tried to improve Venmo’s profitability, and post-transaction ads could help accomplish that without changing consumers’ retail checkout habits. However, one of FMNs key selling points to advertisers and consumers alike is trust. Platforms with FMNs should take care not to erode consumer trust—and down the line, loyalty—by pushing ads too aggressively too soon.

PayPal’s Honey browser extension will start recommending products based on users’ conversations with chatbots, per a press release. Relying on the Honey browser extension rather than striking individual partnerships with each major AI platform is a far more expedient pathway to broaden Honey’s reach across AI-based shopping. And by keeping the selection and checkout processes squarely in the province of the user, Honey gets to reap the benefits of the rise in AI-enabled product discovery without the associated risks of agentic commerce.

PayPal Ads offers unique ad targeting via transaction data: Access to PayPal’s 400 million users aims to transform digital advertising for small and medium-sized businesses.

By 2026, nearly 30% of US consumers’ average retail spending (excluding food and beverage sales and ticketing) will be made using proximity mobile payments, as providers look to build on the pandemic-driven adoption of the technology.

The new tie-up can help bring more Honey users to PayPal’s app, aiding cross-promotion and its push further into retail.