Google, PayPal Roll Out An AI Commerce Agreement
Google and PayPal have announced a multi-year partnership designed to redefine how digital payments and commerce are delivered across platforms. The deal will see PayPal’s branded checkout, Hyperwallet, and Payouts embedded into a wide range of Google products, while also making PayPal Enterprise Payments a key processor for services like Google Cloud and Google Play.
For Google, the partnership is as much about scale as it is about security. “Through this partnership, PayPal will use our industry-leading AI to enhance services and security, and we will more deeply integrate PayPal’s innovative payment capabilities for a better experience across Google products and platforms,” said Sundar Pichai, CEO of Google and Alphabet.
PayPal’s CEO, Alex Chriss, framed it as a bigger shift in how people shop online: “In this emerging world of agentic commerce, trust and innovation are key. Together with Google, we are leading the way for digital commerce, ensuring greater opportunities for merchants and users worldwide. We are bringing PayPal’s products and services to billions of Google users and redefining what’s possible at global scale.”
Investors appeared encouraged by the news, PayPal’s shares rose more than 3 percent in late afternoon trading following the announcement. Just weeks earlier, the Paypal revealed a partnership with AI startup Perplexity, giving users early access to its new Comet browser and a 12-month trial of its Pro subscription.
The companies say their work goes beyond new products. By combining Google’s AI and PayPal’s payments network, they hope to equip consumers, businesses, and developers with smarter tools for digital commerce. They also see the partnership as a way to set new standards and keep driving innovation in the industry.
The key areas of innovation Include:
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Agentic Shopping and Commerce Experiences: Google and PayPal are working together on new AI-powered shopping tools and setting industry standards that will guide the future of agentic commerce. By combining Google’s AI expertise with PayPal’s global payment network, data-driven personalization, and identity solutions, the partnership aims to deliver smarter, more seamless experiences. Both companies are also backing the adoption of Google’s Agent Payments Protocol, a secure and scalable framework designed for agentic commerce.
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Broader Integration of PayPal Solutions: PayPal’s offerings, including PayPal Checkout, Hyperwallet, and Payouts, will be embedded across Google’s ecosystem to deliver smooth, consistent user experiences.
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Expanded Payment Processing: PayPal Enterprise Payments will serve as a key processor for card payments across Google Cloud, Google Ads, and Google Play, strengthening PayPal’s role as a trusted payments provider on core Google platforms.
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Google Cloud Collaboration: PayPal will also work with Google Cloud to modernize its applications, infrastructure, and technology foundations, helping power the company’s next-generation commerce and payments platform.
