Google and PayPal partner to advance AI-driven commerce

Google and PayPal entered into a multiyear strategic partnership aimed at advancing digital commerce through artificial intelligence, expanded integrations, and joint development of new standards. The companies announced the collaboration Sept. 17, 2025, framing it as a step toward shaping the future of what they call "agentic commerce."

According to the companies, PayPal's payment services will be embedded more deeply across Google's platforms, while Google will provide AI technology to enhance PayPal's offerings. Sundar Pichai, CEO of Google and Alphabet, said the partnership would build on the companies' existing relationship and make transactions "simpler and more secure."

Alex Chriss, president and CEO of PayPal, described the deal as an opportunity to expand PayPal's reach, stating that it will bring the company's products "to billions of Google users" worldwide.

AI-driven shopping experiences

A central focus of the partnership is developing AI-enabled shopping experiences and frameworks for "agentic commerce," a term used to describe digital agents or AI tools that transact on behalf of consumers. The two companies plan to combine Google's artificial intelligence with PayPal's payment infrastructure and identity tools to create new capabilities in this emerging area.

Both industry titans also said they will advocate for broader adoption of Google's Agent Payments Protocol, an open standard intended to ensure secure, scalable, agent-led transactions. Industry support for such protocols could influence how quickly agentic commerce becomes mainstream.

Expanded integrations across platforms

The partnership will integrate PayPal services such as branded checkout, Hyperwallet, and PayPal Payouts into more Google products. PayPal will also become one of the main processors of card payments for Google Cloud, Google Ads and Google Play. The move is expected to reinforce PayPal's presence as a payment provider within Google's ecosystem.

In addition, PayPal will expand its use of Google Cloud to modernize its own infrastructure. The companies said this would support the development of PayPal's next-generation payments platform.

Industry implications

While details on the financial terms of the partnership were not disclosed, the deal reflects a broader trend of technology companies deepening their ties with established payment networks as AI reshapes digital commerce. Analysts noted that partnerships of this scale often seek to set standards that smaller competitors may eventually follow.

Whether the collaboration will "redefine what's possible," as Chriss suggested, remains to be seen. However, the agreement underscores both companies' ambitions to play leading roles in the rapidly evolving payments and commerce ecosystem.

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