PayPal AI Hackathon 2026 · Product demo

AI MicroWallet

Turn repeated low-value purchases into a clear, auditable wallet journey.

Follow the numbered steps to see how AI identifies a good MicroWallet use case, how small purchases settle from a reusable balance, and how PayPal Sandbox can fund the wallet externally.

AI — identifies suitable payment patternsMicroWallet — handles repeated small purchases from one balancePayPal Sandbox — adds funds to the wallet for the demo

Step 1 · AI opportunity scan

Spot the low-value payment pattern

Five small digital purchases total 1.45 USD. Ask AI whether this pattern is a good fit for a MicroWallet.

Show the sample transaction history
  • Digital service A — 0.35 USD
  • Digital service B — 0.20 USD
  • Translation — 0.45 USD
  • API call — 0.30 USD
  • Content — 0.15 USD

Step 2 · Buyer MicroWallet

Buyer MicroWallet

A reusable wallet balance makes small digital purchases quick and simple.

Loading wallet…

Available balance: —

Step 3 · Seller MicroWallet

Seller MicroWallet

Small purchases accumulate in the seller wallet instead of requiring a separate external payment for every purchase.

Accumulated balance: —

Purchases received: —

Seller earnings accumulate in the MicroWallet.

Step 4 · Merchant checkout

Buy a digital service

Demo purchase: 0.20 USD

Small purchases use the MicroWallet balance. PayPal Sandbox is used to add funds to the wallet, rather than processing every small purchase separately.

Activity

Recent MicroWallet purchases are shown here for the demo.

Activity is unavailable until the wallet loads.

PayPal Sandbox funding

Funding history is unavailable until the wallet loads.

Production model

Authorize once. Then let small purchases stay small.

PayPal Sandbox approval is intentionally visible in this hackathon demo so external wallet funding can be verified. A production MicroWallet would use a different everyday flow.

One-time setup

Authorize the device, establish a device-bound credential in secure storage, and choose spending limits.

Everyday micro-purchases

Purchases inside those limits can be completed automatically by the trusted device, without repeated login or payment approval.

Step-up when needed

Re-authentication is required when limits are exceeded, the device changes, or risk controls trigger.

Example policy: up to $1 per purchase and $20 per day. Limits and step-up authentication rules would be configurable by the wallet provider and the user.

AI recommends. Code controls balances. PayPal moves money.