Payments giant PayPal announced the acquisition of Israeli technology startup Cymbio, aiming to strengthen its position in so-called "agentic commerce" – a new shopping model in which consumers discover and purchase products through artificial intelligence instead of traditional online stores. The transaction, whose value has not been officially disclosed, is estimated to be worth hundreds of millions of dollars.
What is Cymbio and why is it so important to PayPal?
Cymbio is a Tel Aviv-based company founded in 2015 by Roy Avidor, Mor Lavi, and Gilad Zirkel. The company specializes in a multichannel orchestration platform that helps brands sell their products across various channels, including AI platforms such as Microsoft Copilot and Perplexity. Cymbio's technology enables merchants to synchronize product data, inventory, and orders across multiple channels. Simply put, the startup creates a bridge between traditional online stores and new AI assistants that search for and recommend products on behalf of users.
To date, Cymbio has raised more than $35 million (approximately CZK 800 million) from investors including PayPal Ventures and Vertex Ventures. PayPal and Cymbio had already partnered before the acquisition, and PayPal Ventures invested in the company in 2022.
PayPal is seeking to establish itself as a key player in "agentic commerce." This concept is expected to fundamentally change how people shop online. Instead of consumers browsing websites and online stores, AI assistants such as ChatGPT, Microsoft Copilot, or Google Gemini search for products, compare prices, and recommend the best options on their behalf.
Michelle Gill, executive vice president and general manager of PayPal's Small Business and Financial Services group, said: "PayPal has established itself as the leading commerce partner for merchants looking to sell through leading AI platforms. The acquisition of Cymbio's technology and team will strengthen our agentic commerce capabilities and accelerate expansion to more of our merchants."
Store Sync – a key service for merchants
At the heart of the transaction is PayPal's Store Sync service, which was already powered by Cymbio's technology. Store Sync enables merchants to make their product catalogs available in AI shopping environments, while orders are routed back to merchants' existing systems for fulfillment and management. Importantly, merchants remain the sellers of record and retain control over customer relationships and their brands. This is crucial at a time when major platforms are expanding their influence over digital commerce.
PayPal's agentic commerce services and payment options are already available to merchants on Microsoft Copilot and Perplexity. Integration with OpenAI's ChatGPT and Google's Gemini app and AI Mode is expected in the near future.
Several major retailers are already actively using Store Sync. They include well-known brands such as Abercrombie & Fitch, Fabletics, Ashley Furniture, Newegg, and Adorama. These companies are already live with Store Sync on Microsoft Copilot and Perplexity.
PayPal's strategic move
The acquisition of Cymbio represents a strategic shift for PayPal from being merely a payment services provider to becoming an infrastructure player in digital commerce. By acquiring Cymbio, PayPal gains control over the technology layer that precedes the payment process itself – the point at which AI systems discover, display, and order products on behalf of consumers.
The Cymbio team brings decades of experience in brand integration and enabling multichannel commerce, including marketplaces. The Tel Aviv-based company has come a long way since its founding in 2015 and is now becoming part of one of the world's largest payments giants.
The transaction is expected to close in the first half of 2026, subject to customary closing conditions. The specific terms of the agreement have not been disclosed, but its value is estimated to be in the hundreds of millions of dollars, making this acquisition a significant investment in the future of AI-driven commerce.
PayPal is thus making it clear that it believes in a future where artificial intelligence will play a key role in how people shop. The acquisition of Cymbio will allow it to offer tens of millions of merchants the opportunity to become visible on leading AI platforms and benefit from the growing trend of AI-driven shopping.
Source: theinformation.com
