Google and PayPal Partner on Agentic Commerce to Redefine AI Shopping

Google and PayPal have announced a multi-year partnership on agentic commerce, a collaboration designed to bring artificial intelligence deeper into shopping and payment experiences. The agreement, revealed on Wednesday, will combine Google’s AI expertise with PayPal’s global payment infrastructure, enabling new AI-powered commerce solutions across Google’s ecosystem.

Creating the Future of AI-Powered Shopping

Under the partnership, Google will integrate PayPal’s branded checkout, Hyperwallet, and Payouts services across platforms such as Google Cloud, Google Ads, and Google Play. Meanwhile, PayPal will use Google’s AI technology to develop agentic shopping experiences—purchases initiated and executed by AI agents on behalf of consumers.

Although neither company has detailed the exact form these experiences will take, both stressed that the partnership will focus on making digital shopping more personalized, seamless, and intelligent. By leveraging AI agents, consumers may be able to conduct transactions faster, automate repetitive tasks, and receive product recommendations tailored to their needs.

Supporting Google’s Agent Payments Protocol

A key element of this collaboration is support for Google’s new Agent Payments Protocol, announced earlier in the week. The open standard, already backed by more than 60 merchants and financial institutions, is designed to enable AI-driven purchases across industries.

As part of the agreement, PayPal will advocate for adoption of the protocol alongside other stakeholders. This underscores the companies’ shared vision of mainstreaming agentic commerce and establishing technical standards that ensure interoperability and trust.

PayPal Strengthens Its Role in Google’s Ecosystem

The deal also ensures PayPal becomes a key payment provider across several of Google’s services. For card payments, PayPal will be featured prominently in Google Cloud, Google Ads, and Google Play. These integrations will not only expand PayPal’s visibility but also streamline payment options for millions of merchants and consumers who rely on Google products.

At the same time, PayPal gains the opportunity to refine its services using Google Cloud infrastructure. By collaborating on hosting and technical improvements, PayPal can boost scalability and reliability while accelerating the rollout of innovative payment tools.

Competitive Context: Big Tech and AI in Payments

The partnership reflects a broader trend of Big Tech companies embracing AI for commerce and finance. As consumers increasingly expect personalized and frictionless shopping, both Google and PayPal are positioning themselves to lead in this space.

For PayPal, this move comes as it seeks to maintain its dominance in digital payments amid competition from Apple Pay, Stripe, and other fintech players. By aligning with Google’s AI ecosystem, PayPal is betting on agentic commerce as the next frontier.

For Google, the integration of PayPal solutions strengthens its payment offerings while showcasing the potential of its AI models. The deal also reinforces Google’s push to standardize agent-led transactions through the Agent Payments Protocol.

Outlook: A New Era for Agentic Commerce

While specifics of upcoming shopping experiences remain under wraps, the partnership sets the stage for AI-driven retail innovation. If executed effectively, agentic commerce could automate entire customer journeys—from product discovery to checkout—while ensuring secure, identity-verified payments.

By combining Google’s AI capabilities with PayPal’s global infrastructure, the companies are aiming to deliver shopping experiences that are smarter, faster, and more reliable. As adoption of agentic commerce grows, this partnership could become a blueprint for future collaborations between tech giants and payment providers.

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