PayPal and Google Join Forces to Build the Future of Digital Commerce

PayPal Holdings has announced a landmark multi-year partnership with Google to create what they call a “next-generation commerce and payments platform”, reports Payments Dive. As part of the deal, PayPal will integrate its checkout services more deeply across Google’s ecosystem—including advertising, gaming, and other products—while becoming a key processor for card payments on Google platforms.

In return, PayPal will leverage Google’s powerful cloud computing and AI capabilities to rebuild its technology infrastructure, aiming to drive innovation, boost personalization, and strengthen security. The two companies are also collaborating on “agentic commerce”—the emerging concept of AI agents that can shop and make purchases autonomously on behalf of consumers. This partnership aligns with Google’s recent work on developing new technical protocols for AI-driven transactions.

PayPal previously revealed it is investing $300 million in a multi-year modernization effort, and this collaboration with Google appears to be a cornerstone of that strategy. “The partnership brings together PayPal’s global payment network and identity solutions with Google’s industry-leading AI to create new experiences,” PayPal stated. Google CEO Sundar Pichai added, “We’re excited to expand our work together to make transactions simpler, more secure, and more seamless across Google platforms.”