Shares in both PayPal (PYPL) and Alphabet (GOOGL) are climbing following the pair’s announcement of a new multi-year partnership. PayPal revealed it will begin using Google’s AI technology to create new AI-powered shopping experiences. PayPal’s solutions, meanwhile, will be integrated across Google’s products, and PayPal will work with Google Cloud on hosting and improving its technology infrastructure.
“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.”
“In this emerging world of agentic commerce, trust and innovation are key,” said 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 a global scale.”
As part of the deal, PayPal will be listed as a key payment provider for card payments in areas like Google Cloud, Google Ads, and Google Play. Both companies will join others to advocate for the adoption of Google’s new Agent Payments Protocol.
Shares in PayPal (PYPL) stock are rebounding from a 6-month slump, with the stock now consolidating around the $68 mark. For Alphabet, GOOGL stock has seen significant gains in the past few weeks, up 3% in the last week and over 21% in the last 30 days. Both PayPal PYPL and GOOGL are up today by a fraction of a percent.