These initiatives are part of a new multiyear strategic partnership between the companies, they said in a Wednesday (Sept. 17) press release.
With the combination of PayPal’s global payment infrastructure, personalization and identity solutions and Google’s artificial intelligence (AI) expertise, the companies will create new AI shopping experiences and develop standards for agentic commerce, according to the release.
The partnership also includes embedding PayPal’s branded checkout, Hyperwallet global payout capabilities and PayPal Payouts mass payments solutions across Google’s platforms; making PayPal Enterprise Payments a key payment provider processing card payments across Google Cloud, Google Ads and Google Play; and working with Google Cloud to power the next generation of PayPal’s commerce and payments platform, per the release.
Google and Alphabet CEO Sundar Pichai said in the release: “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.”
PayPal President and CEO Alex Chriss said in the release that trust and innovation are key in the emerging world of agentic commerce.
“Together with Google, we are leading the way for digital commerce, ensuring greater opportunities for merchants and users worldwide,” Chriss said.
Google said in a Tuesday (Sept. 16) blog post that it developed its Agent Payments Protocol (AP2) in tandem with payments and tech firms, including PayPal.
AP2 is designed to “securely initiate and transact agent-led payments across platforms,” the company said in the post.
Google is collaborating on agentic payments with more than 60 companies, including PayPal, Adyen, American Express, Mastercard, Coinbase and Revolut.
PayPal led off its April earnings call with an announcement about agentic commerce.
Chriss said during the April 29 call that the company had launched a remote Model Context Protocol (MCP) server and enabled leading AI agent frameworks to integrate with PayPal application programming interfaces (APIs).
“Now any business can create agentic experiences that allow customers to pay, track shipments, manage invoices and more, all powered by PayPal and all within an AI client,” Chriss said.
The PYMNTS Intelligence report “Payments Execs Say AI Agents Give Payments an Autonomous Overhaul” found that agentic AI is already being used in financial services, payments and B2B commerce.
Source: https://www.pymnts.com/