Google and PayPal have announced a multiyear strategic partnership to advance digital commerce solutions.

The collaboration will focus on improving how businesses and consumers transact across platforms and devices, combining the companies’ expertise to enhance the efficiency and security of online payments.

“PayPal is a leader in digital commerce, and we’re excited to expand our work together to make online transactions simpler and more secure,”

said Sundar Pichai, CEO of Google and Alphabet.

“Through this partnership, PayPal will use our industry-leading AI to enhance services and security, and we will more deeply integrate PayPal’s payment capabilities across Google products and platforms.”

Alex Chriss, President and CEO of PayPal, added:

“Together with Google, we are leading the way for digital commerce, ensuring greater opportunities for merchants and users worldwide. We are bringing PayPal’s products and services to billions of Google users and redefining what’s possible at global scale.”

The partnership will develop AI-driven shopping experiences and establish standards for agentic commerce.

This includes combining PayPal’s global payment infrastructure, personalisation tools, and identity solutions with Google’s AI capabilities.

Both companies are promoting best practices such as Google’s Agent Payments Protocol, a secure and scalable framework for agentic commerce.

PayPal’s solutions, including PayPal-branded checkout, Hyperwallet, and PayPal Payouts, will be integrated across Google products to support seamless payment experiences.

Additionally, PayPal Enterprise Payments will process card payments on platforms such as Google Cloud, Google Ads, and Google Play, further embedding PayPal as a key payment provider.

The partnership also extends to Google Cloud, where PayPal will work to modernise its technology infrastructure and applications to support its next-generation commerce and payments platform.

These developments aim to provide tools for consumers, merchants, and developers to engage in digital commerce while creating a foundation for ongoing collaboration and industry standards.

Featured image credit: Edited by Fintech News Switzerland, based on image by Marques Thomas via Unsplash