## PayPal and Google Forge Strategic Partnership to Advance Agentic Commerce **Report Provider:** PYMNTS.com **Author:** PYMNTS **Published Date:** September 17, 2025 ### Overview PayPal and Google have announced a significant multiyear strategic partnership aimed at developing and advancing "agentic commerce." This collaboration will leverage PayPal's extensive payment infrastructure and Google's advanced artificial intelligence (AI) capabilities to create new AI-powered shopping and commerce experiences. ### Key Initiatives and Objectives The partnership focuses on several key areas: * **Developing AI Shopping Experiences:** The companies will combine PayPal's global payment infrastructure, personalization, and identity solutions with Google's AI expertise to build innovative AI-driven shopping experiences. * **Establishing Standards for Agentic Commerce:** A core objective is to develop industry standards for agentic commerce, a concept where AI agents can autonomously perform transactions and manage commerce-related tasks on behalf of users. * **Embedding PayPal Services Across Google Platforms:** PayPal's branded checkout, Hyperwallet global payout capabilities, and PayPal Payouts mass payments solutions will be integrated across various Google platforms. * **Strengthening Google Cloud's Payment Processing:** PayPal Enterprise Payments will become a key payment provider, processing card payments for Google Cloud, Google Ads, and Google Play. * **Powering PayPal's Next-Generation Platform:** Google Cloud will collaborate with PayPal to support the development of PayPal's future commerce and payments platform. ### Agentic Commerce and AI Payments Protocol The partnership is closely tied to Google's development of its **Agent Payments Protocol (AP2)**, designed to "securely initiate and transact agent-led payments across platforms." Google has been collaborating on agentic payments with over 60 companies, including major players like Adyen, American Express, Mastercard, Coinbase, and Revolut, with PayPal being a key partner in this initiative. PayPal has been actively involved in the agentic commerce space, having announced its efforts during its **April earnings call**. At that time, PayPal President and CEO Alex Chriss mentioned the launch of a remote Model Context Protocol (MCP) server and the enablement of leading AI agent frameworks to integrate with PayPal's APIs. This allows businesses to create agentic experiences for customers to handle tasks such as payments, shipment tracking, and invoice management within AI clients, all powered by PayPal. ### Strategic Importance and Vision Both companies emphasize the importance of trust and innovation in the evolving landscape of agentic commerce. * **Sundar Pichai, Google and Alphabet CEO**, stated, "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." * **Alex Chriss, PayPal President and CEO**, highlighted, "Together with Google, we are leading the way for digital commerce, ensuring greater opportunities for merchants and users worldwide." ### Market Context The PYMNTS Intelligence report, "Payments Execs Say AI Agents Give Payments an Autonomous Overhaul," indicates that agentic AI is already making inroads in financial services, payments, and B2B commerce, underscoring the growing significance of this technology. ### Conclusion The partnership between PayPal and Google signifies a major step towards realizing the potential of agentic commerce. By combining their respective strengths, the companies aim to redefine online shopping and payment experiences, making them more intelligent, secure, and seamless for both consumers and businesses.
PayPal and Google Partner to Advance Agentic Commerce | PYMNTS.com
Read original at PYMNTS.com →PayPal and Google are collaborating on agentic shopping and commerce experiences and other initiatives to advance agentic commerce. 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.
Advertisement: Scroll to Continue “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.
