PayPal Holdings Inc. and Alphabet Inc.’s Google had announced a multiyear strategic partnership on Wednesday. The partnership aimed at merging their payment systems with artificial intelligence (AI) tools to reshape online transactions and shopping experiences.

According to the press release, the collaboration will integrate PayPal’s checkout options into key Google products such as Google Cloud, Google Ads, and Google Play. It also includes embedding PayPal’s Hyperwallet and Payouts solutions across Google’s platforms to streamline payouts for merchants and developers.
PayPal also stated that it is expanding its services to allow its customers to pay with cryptocurrencies. CEO Alex Chriss said the future of shopping will involve AI agents and crypto payments.

AI commerce rules for secure transactions
PayPal and Google are setting rules to ensure merchants, customers, and AI agents operate safely with proper risk protections. This follows Google’s recent launch of a new protocol to securely handle payments made by AI agents.

“We are bringing PayPal’s products and services to billions of Google users and redefining what’s possible at global scale,” PayPal CEO Alex Chriss said.

The PayPal-Google partnership could let an AI agent shop for a customer, using PayPal’s data to pick items matching their preferences, in a process called agentic commerce.

“PayPal is a leader in digital commerce, and we’re excited to expand our work together to make online transactions simpler and more secure,” said Sundar Pichai, CEO of Google and Alphabet.

The deal comes as digital payments worldwide are expected to grow beyond $19.89 trillion by 2026.