Inside Google & PayPal’s Partnership for AI Commerce
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Published Time: 2025-09-22T07:30:00Z
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AI Applications
Inside Google & PayPal’s Partnership for AI Commerce
September 22, 2025
4 mins
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Why Google Partnered With PayPal for AI Commerce Push
Google and PayPal strike an AI commerce deal, integrating payments across Google while developing automated shopping and digital transaction protocols
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PayPal
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Google is striking a multiyear deal with PayPal that will impact how both companies approach AI-powered commerce.
The agreement embeds PayPal’s payment infrastructure across Google’s key services while the pair collaborate on developing automated shopping systems that can make purchases without human intervention.
The partnership makes PayPal Enterprise Payments a primary processor for transactions across Google Cloud, Google Ads and Google Play.
PayPal’s checkout solutions, including Hyperwallet and PayPal Payouts will be woven throughout Google’s product ecosystem.
Both companies are also working together to create what they call “agentic commerce” – AI systems that can conduct transactions autonomously on behalf of users.
Sundar Pichai, CEO, Google/Alphabet
“PayPal is a leader in digital commerce and we’re excited to expand our work together to make online transactions simpler and more secure,” says 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 innovative payment capabilities for a better experience across Google products and platforms.”
Why PayPal shifts infrastructure to Google Cloud platform
The deal involves an infrastructure overhaul for PayPal, which will migrate its technology systems to Google Cloud.
This is a big shift for the payments company, which has historically maintained much of its core infrastructure using its own data centres.
“PayPal is a leader in digital commerce, and we're excited to expand our work together to make online transactions simpler and more secure”
Sundar Pichai, CEO, Google/Alphabet
The migration allows PayPal to tap into Google’s machine learning (ML) capabilities to enhance fraud detection and speed up transaction processing.
For PayPal, it’s about modernising its platform architecture and building new financial products on more flexible foundations.
Google benefits by gaining a proven payments partner as it expands its enterprise cloud services.
PayPal’s established merchant relationships also gives Google access to distribution channels that have proven difficult to crack, while strengthening its position against rivals like Microsoft Azure and Amazon Web Services (AWS).
The timing shows how companies increasingly want cloud providers that can handle both computing workloads and payment processing, reducing vendor complexity while improving transaction security.
How Agent Payments Protocol tackles AI commerce standards
Both companies are pushing for adoption of Google’s Agent Payments Protocol, a framework designed to handle transactions conducted by AI systems.
“In this emerging world of agentic commence, trust and innovation are key”
Alex Chriss, President and CEO of PayPal
The protocol addresses the tricky security and authentication challenges that emerge when automated agents make purchasing decisions without direct human oversight.
Unlike human-initiated transactions, AI agents need different security protocols.
They must verify user intent, authenticate payment methods and ensure transaction legitimacy without traditional safeguards like passwords or biometric confirmation.
Apple, Amazon and other platforms are developing independent approaches to automated shopping and payment processing – each seeking to establish technical standards that could influence how AI-powered commerce develops across the industry.
PayPal brings transaction data from its global merchant network, while Google contributes ML algorithms and natural language processing capabilities that allow computers to understand and interpret conversational shopping requests.
The companies plan to make their AI commerce protocols available to other industry participants, potentially changing how automated purchasing systems evolve.
Alex Chriss, CEO & President, PayPal
“In this emerging world of agentic commence, trust and innovation are key,” says Alex Chriss, President and CEO of PayPal.
“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.”
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