Two powerhouses in ecommerce will join forces as tech companies race to build AI agentic services, which some say will replace search engines as the starting point of shoppers’ journeys.
Google tapped PayPal as a payment solution within Google’s core platforms, and PayPal will use Google AI to enhance its services and security, according to Sundar Pichai, the CEO of Google and its parent company Alphabet.
The two companies will also collaborate to deliver “innovative solutions that transform how businesses and consumers transact across platforms and devices.” The multiyear strategic partnership announced on Wednesday focuses on advancing several commerce solutions to deliver frictionless digital commerce experiences and set a new standard for commerce ecosystem innovation.
“In this emerging world of agentic commence, trust and innovation are key,” said Alex Chriss, President and CEO of PayPal. “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.”
It’s particularly interesting to see Google partner with PayPal because of their former rivalry when eBay owned PayPal (they split in 2015). Back in the mid-2000s, rumors of a Google “PayPal killer” payment service of its own dominated industry discussions. The new partnership may never have happened if eBay still owned PayPal.
According to Wednesday’s joint Google-PayPal announcement, the companies are collaborating in the following areas:
Agentic Shopping and Commerce Experiences: PayPal and Google are collaborating to create new AI shopping experiences and developing standards that will help shape the future of agentic commerce across the industry. The partnership will bring together PayPal’s global payment infrastructure, data-driven personalization and trusted identity solutions, alongside Google’s AI expertise to deliver new AI experiences. The companies, along with many others, are also advocating for the adoption of best practices such as Google’s Agent Payments Protocol, a secure, open, scalable solution paving the way for the future of agentic commerce.
Broad Embedding of PayPal Solutions across Google’s platforms: PayPal’s solutions—including PayPal branded checkout, Hyperwallet and PayPal Payouts solutions—will be integrated throughout various Google products supporting best-in-class seamless experiences.
Expanded Payment Processing: PayPal Enterprise Payments will be one of the key payment providers processing card payments across products like Google Cloud, Google Ads, and Google Play, boosting PayPal’s role as a trusted, payment solution within Google’s core platforms.
Google Cloud Expansion: PayPal will partner with Google Cloud to reimagine its technology foundations, applications, and infrastructure to power PayPal’s next-generation commerce and payments platform.
The reason Google and PayPal believe the partnership is a big deal:
“These product innovations from PayPal and Google help advance the intelligent agent revolution, equipping consumers, merchants, and developers with flexible tools to engage in the next generation of digital commerce. They also provide a solid foundation for ongoing innovation and collaboration between the companies and their customers, opening the door to better outcomes for the industry as new standards and opportunities emerge.”
