This IDC Market Perspective discusses how PayPal's Model Context Protocol (MCP) server and agentic toolkit are transforming AI-driven workflows. "PayPal's launch of the MCP server and Agent Toolkit signals a transformative leap from traditional, generative AI to a new era of agentic commerce — where autonomous agents can not only generate content but also execute complex, multistep commercial workflows on behalf of users and businesses. By standardizing how AI agents access PayPal's APIs and integrating support for leading large language models, PayPal is dramatically simplifying the development and deployment of AI-driven commerce solutions," said Arnal Dayaratna, research vice president, Software Development, IDC. "This approach not only lowers technical barriers for developers but also enables a broader spectrum of innovators — including ISVs, merchants, and nontraditional developers — to build intelligent, adaptive payment and commerce applications. The result is a more inclusive, scalable, and responsive digital commerce ecosystem, where AI agents can manage everything from order processing to dispute resolution and subscription management, all orchestrated through natural language and secure, standardized interfaces. PayPal's move positions the company at the forefront of agentic commerce, setting a new standard for how financial and transactional services can be embedded into the workflows of tomorrow's digital economy."
Executive Snapshot
New Market Developments and Dynamics
IDC's Point Of View
From LLMs to AI Agents: Expanding Beyond Conversation
PayPal's MCP Server and Agent Toolkit: Powering the Leap from Generative AI to Agentic AI
Advancing Standardization and Simplifying AI Integration in Commerce
Enabling Developers to Explore New Value Propositions
Providing Access to Cutting-Edge LLMs via MCP for Advanced Development
Democratizing Payment Solution Development by Foregrounding Natural Language
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