AI Meets Finance: ETFs in Spotlight as PayPal-OpenAI Seal Deal

Following a landmark partnership agreement, signed over the weekend, PayPal (PYPL) has now become the default digital payment wallet within OpenAI-owned ChatGPT. The deal will allow hundreds of millions of users to shop for products seamlessly inside the AI-driven interface, accessing PayPal’s payment and merchant network. No doubt, this mega deal has positioned PayPal at the forefront of AI-powered commerce, a move that is likely to draw significant attention from Exchange-Traded Funds (ETFs) investors seeking exposure to this growing trend. The Deal: A Revenue Catalyst for PayPalThe latest PayPal-OpenAI deal should be a powerful growth catalyst for PayPal. The agreement will allow PayPal to plug both its consumer and merchant networks into ChatGPT. This means users can buy products directly, and merchants can sell their listed inventory on the AI platform, starting next year, as PayPal CEO Alex Chriss said to CNBC.By becoming the first payment wallet embedded in ChatGPT, the company has secured a critical position in the burgeoning field of "agentic commerce," where AI assists in the entire shopping process. For PayPal, this integration is expected to boost Total Payment Volume (TPV) and drive transaction revenues by tapping into a massive, high-growth user base. Resultantly, PayPal’s revenues will receive a significant boost via increased payment volume, broader merchant exposure, and enhanced consumer engagement with digital shopping assistants. This deal further accelerates the trend of AI-driven commerce and represents a strategic effort by PayPal to expand its ecosystem and streamline the user experience. PayPal-Heavy ETFs in SpotlightThe announcement of the deal, which coincided with strong third-quarter earnings and PayPal's first-ever dividend announcement, sent the stock up by almost 4% over the last trading session. Against this backdrop, the current environment of surging AI adoption and transformative e-commerce shifts may encourage investors to add PLPY to their portfolio. However, instead of betting on a single stock, an ETF will offer diversified exposure to PayPal's potential upside while mitigating single-stock risk through holdings in other market leaders.Thus, ETF investors seeking exposure to digital payments, fintech innovation, and AI-driven commerce may want to monitor PayPal-centric ETFs for the moment. Below, we have mentioned 3 ETFs with heavy PayPal exposure, offering potential avenues for benefiting from the company’s expanding AI commerce footprint.Global X FinTech ETF (FINX)This fund, with net assets of $312.3 million, provides exposure to 64 companies at the forefront of the emerging financial technology sector, which includes a range of innovations transforming established industries such as insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. PayPal holds the fourth spot in this fund’s holdings, accounting for a 5.14% share.FINX has gained 23.8% over the past six months. The fund charges 68 basis points (bps) as fees. Amplify Digital Payments ETF (IPAY)This fund, with net assets worth $258.1 million, provides exposure to 39 global companies involved in payment-related products and/or services including card networks, infrastructure & software, processors and solutions. PayPal holds the second spot in this fund’s holdings, accounting for a 6.4% share.IPAY has gained 9% over the past six months. The fund charges 75 bps as fees. Trenchless Fund ETF (RVER)This is an actively managed fund, with net assets worth $102 million, seeking capital appreciation by investing in securities believed to have an above-average probability of outperforming the S&P 500 Index over all time horizons. PayPal holds the eighth spot in this fund’s holdings, accounting for a 4.89% share.RVER has gained 26.8% over the past six months. The fund charges 65 bps as fees.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Global X FinTech ETF (FINX): ETF Research Reports Amplify Digital Payments ETF (IPAY): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks