Paypal Set For 1 Billion Acquisition Of Tel Aviv-Based E-Commerce Platform Cymbio

PayPal has announced its intention to acquire Cymbio, a Tel Aviv-based multi-channel commerce platform, with the aim of strengthening PayPal’s “agentic commerce” strategy. This acquisition is aimed at enabling tens of millions of merchants to access leading AI platforms, thereby making their product catalogs easier to surface, purchase, and fulfill in emerging AI shopping assistants.

Agentic commerce leverages artificial intelligence (AI) to create a seamless shopping experience for consumers. By integrating Cymbio’s technology into PayPal’s platform, the company aims to provide merchants with tools that enable them to become discoverable and drive sales growth. Cymbio specializes in “multi-channel orchestration,” a layer of infrastructure that helps brands manage selling across multiple surfaces at once.

This includes AI interfaces, online marketplaces, retail partner sites, and social commerce platforms. By reducing the manual work of maintaining product listings, inventory accuracy, order routing, and billing across multiple selling environments, Cymbio’s technology empowers merchants to focus on what matters most – delivering exceptional customer experiences.

PayPal had already partnered with Cymbio before the acquisition announcement, using the company as part of its agentic commerce services. This existing relationship likely reduces integration risk, since the technology is already embedded into PayPal’s roadmap and merchant offerings.

The acquisition comes at a time when major technology platforms are racing to embed shopping into AI experiences, changing how consumers discover products and how merchants compete for attention. Recently, Revolut and Google teamed up to do this, highlighting the growing importance of integrating commerce with AI.

PayPal’s agentic commerce services and checkout options are currently available for merchants on Microsoft Copilot and Perplexity, with broader expansion planned. The company also announced that OpenAI’s ChatGPT and Google’s Gemini app and AI Mode are “coming soon,” signaling that it expects AI shopping to become widespread across multiple consumer platforms rather than concentrated in one ecosystem.

This matters because the more AI environments that support shopping, the more merchants will need consistent product data, inventory accuracy, and fulfillment reliability across all of them. A single wrong inventory count or delayed order confirmation can lead to poor customer experiences and reduced AI recommendations in the future.

Store Sync becomes a core asset after the acquisition

PayPal said Cymbio’s team and technology will support Store Sync, a product within PayPal’s agentic commerce services portfolio. Store Sync is designed to make product data “discoverable within AI channels” while also enabling order routing into merchants’ fulfillment and management systems.

Merchants who are already live using Store Sync through Microsoft Copilot and Perplexity include Abercrombie & Fitch, Fabletics, Ashley Furniture, Newegg, and Adorama. The presence of both fashion and home goods brands suggests PayPal believes agentic commerce will be broadly applicable across categories, not limited to small-ticket or digital products.

The deal is expected to close in the first half of 2026, pending customary closing conditions. Financial terms were not disclosed, although some media reports in Israel reckon it’s in the hundreds of millions of dollars.

With the closing expected in the first half of 2026, investors and merchants will be watching for how quickly PayPal can roll out Cymbio’s capabilities across its merchant base, and whether PayPal can become a default checkout option inside AI assistants.

The bigger implication is the emergence of agentic commerce as a mainstream channel, where AI tools don’t just recommend products but also help complete purchases, coordinate fulfillment, and potentially influence which merchants win customer attention.

In addition to this acquisition, PayPal’s venture capital arm has recently spearheaded a substantial funding round for a payments startup that helps businesses handle transactions. This move highlights the company’s commitment to innovation and its focus on empowering merchants with the tools they need to succeed in today’s rapidly evolving commerce landscape.

As agentic commerce continues to gain traction, it’s clear that PayPal is poised to play a significant role in shaping this emerging channel. By integrating Cymbio’s technology into its platform, the company is well-positioned to help merchants tap into the vast potential of AI-powered shopping experiences.

With PayPal’s acquisition of Cymbio, the stage is set for agentic commerce to become a major retail gateway, similar to how marketplaces and social commerce reshaped online shopping over the last decade. As consumers increasingly rely on AI-powered tools to make purchasing decisions, merchants who can seamlessly integrate their products into these channels will be well-positioned for success.

By providing merchants with access to leading AI platforms and enabling them to become discoverable across multiple surfaces, PayPal is empowering them to drive sales growth and deliver exceptional customer experiences. As the world of e-commerce continues to evolve, it’s clear that agentic commerce will play an increasingly important role in shaping the future of retail.