Microsoft Debuts Copilot Checkout for In-Chat Purchases with Major Payment Partners

Microsoft has launched Copilot Checkout, a new feature allowing users to complete purchases directly within conversational interfaces using its AI assistant. The service integrates with major payment processors including PayPal, Shopify Payments, and Stripe, positioning Microsoft as a facilitator of frictionless transactions in chat environments.

According to Microsoft's announcement at the NRF 2026 retail conference, Shopify merchants will be automatically enrolled in the program without requiring manual configuration. This leverages Shopify's existing API infrastructure to synchronize product catalogs and payment processing. The feature appears as a contextual payment prompt when users discuss products or services within Copilot-enabled interfaces.

Technically, the system employs a multi-stage verification process: First, Copilot identifies purchase intent through semantic analysis of conversation history. When triggered, it surfaces relevant product details from merchant databases before initiating a tokenized payment flow through the selected processor. Transaction data remains with the payment provider—Microsoft claims it doesn't store credit card details or transaction histories.

Initial limitations are noteworthy: The service currently supports only USD transactions and requires explicit user consent for each purchase. Complex scenarios like split payments, subscriptions, or custom configurations aren't yet supported. Privacy advocates have raised concerns about potential impulse buying facilitated by frictionless checkout, though Microsoft states all transactions require multi-factor authentication.

The rollout begins with US-based Copilot Pro subscribers this quarter. Enterprise adoption will depend on Microsoft's ability to demonstrate reduced cart abandonment rates—early retail partners report 30-50% higher conversion in pilot tests compared to traditional checkout flows.

Third-party developers can integrate via the Microsoft Commerce Platform APIs, though documentation for custom implementations remains sparse. As conversational commerce grows, Copilot Checkout represents Microsoft's bid to position its AI as a transactional layer rather than just an information tool.