Sept. 17, 2025 (muzicgh.com) — Google and PayPal announced a multiyear partnership to build AI-driven shopping tools and expand payment processing across Google’s products, deepening ties between the search giant and one of the world’s largest digital wallets.
Under the agreement, PayPal’s branded checkout, Hyperwallet and Payouts products will be embedded in a wider range of Google services. PayPal Enterprise Payments will also process card transactions for parts of Google’s business, including Google Cloud, Google Ads and Google Play, the companies said.
The pact also targets so-called “agentic commerce,” AI agents that can help users shop and complete purchases, with both firms backing Google’s new Agent Payments Protocol (AP2), an open standard intended to make AI-initiated payments secure and auditable. Google says AP2 is supported by dozens of payments and tech companies and is designed to work with cards, bank transfers and even stablecoins.
“PayPal is a leader in digital commerce,” Alphabet CEO Sundar Pichai said, adding that Google will use its AI to improve PayPal’s services and security while further integrating PayPal into Google’s platforms. PayPal CEO Alex Chriss said the tie-up aims to “redefine what’s possible at global scale” as AI agents become more common in commerce.
Why it matters: The move gives PayPal deeper reach into Google’s consumer and developer ecosystem, while Google gets another major payments rail for its core platforms. It also places both companies at the center of early attempts to standardize how AI agents authorize and complete purchases, a key trust issue for shoppers and merchants.
Context: The partnership follows Google’s introduction of AP2 this week and comes months after Google removed direct PayPal funding from Google Wallet in the United States, signaling that the companies are steering cooperation toward platform-level integrations and standards rather than wallet-to-wallet links.
What’s next: Google and PayPal say they will co-develop AI shopping experiences and push for broad industry adoption of AP2. Neither company disclosed financial terms.
Source: Newsroom PayPal Corp
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