Google and PayPal team up for a multilayer strategic partnership to transform commerce with AI

Google and PayPal have officially announced a multilayer strategic partnership focused on advancing several commerce solutions. With this collaboration, the companies aim to deliver a frictionless digital commerce experience and set a new standard for the commerce ecosystem.
The CEO of Google and PayPal have expressed their excitement about this partnership on the X platform.
Excited to expand our work together with @paypal to make online transactions simpler and more secure. https://t.co/AYxB7tR8Nr
— Sundar Pichai (@sundarpichai) September 17, 2025
Through this partnership, PayPal will use Google’s industry-leading AI to enhance services and security, while Google will deeply integrate PayPal’s innovative payment capabilities for a better experience across Google products and platforms.
Innovations redefining the future of Commerce
- 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.
It is said that these innovations from both companies will help advance the intelligent agent revolution, equipping consumers, merchants, and developers with flexible tools to engage in the next generation of digital commerce.