PayPal Acquires Israeli AI Startup Cymbio, Strengthening Agentic Commerce Infrastructure

PayPal Announces Cymbio Acquisition

PayPal to Acquire Cymbio, Accelerating Agentic Commerce Capabilities

Cymbio will enable tens of millions of merchants to become discoverable on leading AI platforms.

On January 22, 2026, PayPal Holdings, Inc. announced it has agreed to acquire Cymbio, an AI commerce startup headquartered in Tel Aviv, Israel. While the acquisition amount was not disclosed, Israeli media Calcalistech reports it to be in the hundreds of millions of dollars. The transaction is expected to close in the first half of 2026.

Cymbio was founded in 2015 and has raised over $35 million to date. PayPal Ventures has been investing in the company since 2022, and this acquisition represents an evolution of their existing partnership.

Industry Trends

Agentic commerce refers to a new purchasing paradigm where AI agents discover, compare, and purchase products on behalf of consumers. A world where purchases are completed directly through conversational AI like ChatGPT, Perplexity, and Microsoft Copilot, bypassing traditional EC sites, is becoming reality.

According to Morgan Stanley's forecast, agentic commerce is expected to account for 10-20% of the US EC market by 2030, growing to $190-385 billion. Furthermore, McKinsey predicts it could reach $3-5 trillion globally.

With this massive market in sight, major tech companies are launching AI commerce infrastructure initiatives one after another. PayPal announced its "Agentic Commerce Services" in October 2025, establishing itself as a first mover. This Cymbio acquisition further accelerates that strategy.

Cymbio's Technology and PayPal's Store Sync Integration

Cymbio provides a "multi-channel orchestration platform" that connects brands with retailers and marketplaces. According to their official website, their strength lies in the ability to centrally automate product data management, inventory synchronization, order orchestration, and billing processing.

Notable brands including New Balance, Balmain, Lacoste, and Camper use the platform, connecting with thousands of retail stores including Nordstrom, Macy's, Saks, and Urban Outfitters.

After integration with PayPal, Cymbio's technology will be incorporated into a service called Store Sync. Store Sync automatically connects EC merchants' product data to major AI platforms including Microsoft Copilot, Perplexity, ChatGPT, and Gemini. The key point is that merchants can maintain customer relationships as "merchant of record." This means orders via AI platforms seamlessly integrate with existing order and fulfillment systems, with transactions completed under brand control.

Currently, major retailers including Abercrombie & Fitch, Fabletics, Ashley Furniture, Newegg, and Adorama are deploying products on Microsoft Copilot and Perplexity through Store Sync.

Impact on EC Merchants and How to Leverage

This acquisition brings three major benefits to EC merchants.

By implementing Store Sync, you can list products on major AI platforms including ChatGPT, Gemini, Perplexity, and Microsoft Copilot all at once. You can achieve "AI discoverability" without the technical burden of implementing individual APIs.

Cymbio is also available as a Shopify app and can be installed from the Shopify App Store. It integrates with existing EC platforms and inventory management systems, eliminating the need to build new operations.

With PayPal's "Agent Ready" feature, existing PayPal payment infrastructure including fraud detection, buyer protection, and dispute resolution applies directly to payments on AI surfaces. Agent Ready is scheduled to launch in early 2026.

Merchants considering adoption should start by pre-registering at PayPal's Agentic Commerce page.

Summary

PayPal's acquisition of Cymbio is not just a startup acquisition, but a major investment in the paradigm shift from "search engines" to "AI agents" as the entry point for EC.

Bain & Company predicts that agentic commerce will account for 15-25% of total US EC by 2030. The transition is expected to progress particularly from everyday items and standardized product categories, with analysis suggesting groceries and CPG (consumer packaged goods) will be the "largest unlock area."

For EC merchants, there are three key points to watch going forward. First, the completion of the Cymbio acquisition in H1 2026 and post-integration feature expansion. Second, the official release of Agent Ready and expansion of supported AI platforms. And third, the timing of Store Sync integration with ChatGPT and Gemini.

From the era of "being searched by AI" to the era of "AI buying on your behalf." Standing at this turning point, building a system where your products can be "discovered" by AI agents early will be the key to capturing the next growth opportunity.