Google and PayPal are teaming up on the future of AI-driven commerce. On Wednesday, the two companies announced a multi-year partnership that will see Google’s AI technology powering new shopping experiences, while PayPal integrates its payment infrastructure across Google’s platforms.
Although the companies didn’t reveal specific features, they said the collaboration would focus on AI-powered shopping journeys where Google brings its AI expertise and PayPal leverages its global payments, personalization, and identity solutions.
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The companies will also work together to advance Google’s new Agent Payments Protocol, an open standard for purchases initiated by AI agents. The protocol, unveiled Tuesday, already has support from more than 60 merchants and financial institutions.
As part of the deal, PayPal will become a key payment provider across Google products including Google Cloud, Google Ads, and Google Play. The integration will also cover PayPal’s branded checkout, its Hyperwallet payouts service, and PayPal Payouts.
The move strengthens Google’s AI commerce strategy while giving PayPal a deeper foothold inside Google’s ecosystem at a time when agentic AI shopping is poised to reshape how consumers buy online.
