Google and PayPal have entered into a multiyear strategic partnership aimed at transforming the way consumers and businesses conduct digital transactions across platforms and devices.

The agreement, announced on Wednesday, brings together two of the most influential players in technology and finance to deliver seamless payment solutions and advance innovation in the global commerce ecosystem.

“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 innovative payment capabilities for a better experience across Google products and platforms.”

Alex Chriss, President and CEO of PayPal, said the collaboration represents a major step forward for digital commerce. “In this emerging world of agentic commence, trust and innovation are key,” he said. “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 focus on several key areas. The companies will work together on agentic shopping and commerce experiences, leveraging Google’s AI capabilities alongside PayPal’s global payment infrastructure and identity solutions to develop new standards for the future of agent-driven transactions.

PayPal’s payment tools including PayPal branded checkout, Hyperwallet and PayPal Payouts, will also be embedded across Google’s platforms, delivering a more integrated and frictionless payment experience.

Additionally, PayPal Enterprise Payments will become one of the primary processors of card transactions across major Google services such as Google Cloud, Google Ads, and Google Play.

The partnership will also see PayPal collaborate with Google Cloud to reimagine its core technology infrastructure, supporting the development of its next-generation commerce and payments platform.

Both companies say the innovations introduced through the agreement will accelerate the “intelligent agent” era of commerce, equipping merchants, developers, and consumers with more flexible tools while setting the stage for future standards in the digital economy.