Google and PayPal are teaming up to provide artificial intelligence-powered online shopping assistance.
On Wednesday, PayPal announced the launch of a new multi-year relationship with Google, whereby the payments gaint will use Google’s artificial intelligence (AI) technology to develop new AI-powered shopping experiences. In the meanwhile, PayPal will collaborate with Google Cloud on hosting and enhancing its technological infrastructure, and its solutions will be incorporated into all of Google’s products.
Sundar Pichai, the CEO of Alphabet and Google, stated that he anticipates the partnership will result in a “better experience across Google products and platforms,” while Alex Chriss, the CEO of PayPal, stated that it may open up “greater opportunities for merchants and users worldwide.”
The businesses stated that Google will provide its AI technology and experience, while PayPal would make use of its worldwide payment infrastructure, personalisation, and identification solutions, although they did not specify the precise kinds of agentic shopping experiences they would collaborate on.
With AI agents that can assist customers in finding and comparing products as well as making online purchases, Google is attempting to increase its involvement in agentic commerce. The business launched a new software standard earlier this week with the goal of simplifying and enhancing the dependability of chatbot-enabled purchases.
Additionally, both businesses will join others in promoting the use of Google’s recently unveiled Agent Payments Protocol. More than 60 retailers and financial institutions have already endorsed this open protocol, which aims to facilitate purchases made by AI agents.
As part of the agreement, Google Cloud, Google Ads, and Google Play will list PayPal as a major card payment provider. Hyperwallet payouts, PayPal Payouts, and PayPal’s branded checkout are among the other products that Google is integrating.
In recent trade, Alphabet’s shares, the parent company of Google, were up over 1% at $152, which is just below an all-time high hit earlier this week. Due to the IT giant’s booming revenues and reported success with its AI programs, they have gained around a third of their worth this year. After a poor second quarter, PayPal’s shares was barely changed Thursday at $69, down almost 20% this year. Some Wall Street analysts believe it may be some time before the alliance has a significant impact on PayPal’s performance.
While they see the cooperation as a “step in the right direction” for PayPal, Morgan Stanley analysts cautioned in a letter to clients on Thursday that it may be “unlikely to meaningfully move the needle near-term.”3. They kept the stock at a $75 target and a neutral rating, which is slightly less than the $80 mean of the analysts Visible Alpha polled.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
