E-commerce

PayPal and Google team up on AI-powered shopping

Ken Metral

18 Sep 2025 — 2 min read

Credit: PayPal Holdings, Inc./Alphabet, Inc.

PayPal announced on Wednesday a sweeping new partnership with Google that will bring together the payments giant’s global financial infrastructure and Google’s artificial intelligence technology. The multi-year deal aims to deliver next-generation, AI-powered shopping experiences while deepening PayPal’s integration across Google’s ecosystem.

AI Meets Global Payments

While the companies did not provide specifics on what kinds of “agentic shopping experiences” they plan to build, the collaboration will see Google contribute its AI expertise and PayPal leverage its established payment, personalization, and identity solutions. The vision is to create smarter, more seamless consumer experiences where AI agents can assist with—and even initiate—purchases.

Backing Google’s Agent Payments Protocol

A central part of the announcement is support for Google’s newly unveiled Agent Payments Protocol (APP). Introduced just a day earlier, the open standard is designed to enable AI agents to make purchases on behalf of users. Already backed by more than 60 merchants and financial institutions, the protocol is intended to standardize how AI-driven transactions take place. PayPal and Google’s joint advocacy signals strong momentum for the initiative.

Expanded PayPal Integrations in Google Products

Beyond AI innovation, the partnership also ensures PayPal’s continued visibility and utility across Google platforms. PayPal will now be listed as a key card payment provider in services such as Google Cloud, Google Ads, and Google Play. In addition, Google will integrate several of PayPal’s existing offerings, including:

PayPal Checkout – the company’s flagship branded payment service.
Hyperwallet – enabling fast, flexible payouts.
PayPal Payouts – a service designed for businesses that need to distribute funds at scale.

Strengthening Technology Infrastructure

The collaboration also extends to the backend: PayPal will work with Google Cloud to modernize and scale its technology infrastructure. This includes using Google’s cloud capabilities to improve speed, reliability, and innovation across PayPal’s global network.

A Step Toward the Future of Shopping

The partnership highlights a growing trend: the convergence of payments and AI. As AI agents become more capable of understanding intent, curating personalized shopping journeys, and facilitating transactions, financial infrastructure providers like PayPal are positioning themselves at the center of the shift.

For Google, the deal adds a trusted payment giant to its AI and cloud ecosystem. For PayPal, it offers deeper integrations with one of the world’s largest tech companies—ensuring its services remain front-and-center in the evolving landscape of AI-driven commerce.

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