PayPal Holdings Inc. and Google’s parent company Alphabet Inc. have announced a multiyear partnership to bring artificial intelligence (AI) into digital payments. The deal, revealed on Wednesday, aims to transform how people shop and pay online.
Under the agreement, PayPal’s checkout services will be built into key Google platforms, including Google Cloud, Google Ads, and Google Play. PayPal’s Hyperwallet and Payouts tools will also be added to streamline payments for merchants and app developers.
PayPal says it is also expanding its services to let customers make payments using cryptocurrencies. CEO Alex Chriss said the future of online shopping will rely on AI-powered agents and crypto transactions.
Setting Standards for AI Commerce
To make these new tools safe, Google and PayPal are developing rules to protect merchants, shoppers, and AI agents. Google recently launched a protocol to ensure payments made by AI systems are handled securely.
“We are bringing PayPal’s products and services to billions of Google users and redefining what’s possible at global scale,” Chriss said.
The partnership could lead to a new form of “agentic commerce,” where an AI agent shops on behalf of a customer, using PayPal’s data to select items that match personal preferences.
Google CEO Sundar Pichai called PayPal “a leader in digital commerce,” adding that the collaboration will make transactions “simpler and more secure.”
The move comes as digital payments are projected to surpass $19.89 trillion globally by 2026, highlighting the growing demand for faster and smarter financial technology.
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