PayPal and Google join forces! The "AI Autonomous Payment Model" is about to become a reality

According to Zhitong Finance APP, PayPal (PYPL.US), one of the largest digital payment service providers in the world, has established an online shopping partnership with American tech giant Google (GOOGL.US), combining their respective digital payment models with artificial intelligence application tools for the global transaction system. This significant collaboration will add PayPal's digital checkout functionality to multiple Google brand products and create a collaborative benchmark for ordering through "AI agents" from initial order to final payment, helping sellers showcase their products to specific customers.

It is understood that the partnership announced on Wednesday will integrate PayPal's exclusive online checkout feature into several Google flagship products and initiate a comprehensive collaboration on the artificial intelligence front, assisting sellers in presenting their products to targeted customers and preparing for a world where autonomous AI agents represent consumers in shopping.

Both parties are committed to establishing core standards to ensure that merchants, consumers, and autonomous AI agent tools operate with adequate risk control and payment security features. This major collaboration was announced days after Google released a new agent payment agreement aimed at securely initiating digital payments led by AI agents.

"This is an opportunity for two tech companies to think together about what the future business landscape will look like," said PayPal CEO Alex Chriss in an interview. Chriss indicated that new products and services closely related to this agreement are expected to launch as early as the fourth quarter.

It is understood that this collaboration may allow an autonomous AI agent to shop on behalf of consumers, utilizing PayPal's exclusive vast customer data to find products that match shoppers' preferences, a concept referred to as "agentic commerce."

Chriss pointed out that PayPal's data empowers AI "to become a truly deep and mutually understanding shopping partner for you."

On the payment side, PayPal Enterprise Payments will handle digital card transactions for Google Cloud, Google Ads, and Google Play. Meanwhile, PayPal is also separately expanding a suite of products that allows customers to make payments using cryptocurrency.

"A significant part of the future business landscape will be agentic AI-driven and will be empowered by cryptographic technology," Chriss stated.

The expanded collaboration with Google comes after AI technology company Perplexity chose PayPal to provide significant support for its "AI + Search" AI platform's agentic commerce a few months ago, highlighting the importance of PayPal's digital payment system in the future AI era.

What does this mean for PayPal and Google, whose market value has surpassed $3 trillion?

This partnership effectively ties Google's AI tool distribution + Open Protocol (AP2) with PayPal's payment/identity/risk control foundation: for PayPal, it expands enterprise-level acquisition and control points in agentic e-commerce AI agents For Google, it is about advancing the "AI agent closed loop" from regulation to the implementation of a settlement-based production system— and the answer to "why now" lies in the timing signals such as the recent release of the Google Agent Payments Protocol (AP2), the push for implementation in the Q4 shopping season, the rising demand for transactions involving early Agentic AI agents, and the maturity of cryptocurrency/stablecoin pipelines.

The urgent need for companies to improve efficiency and reduce operational costs has greatly accelerated the widespread application of two core categories of AI application software—generative AI applications and AI agents. The emergence of AI agents with autonomous agency capabilities (Agentic AI) signifies that artificial intelligence is evolving from an information assistance tool to a highly intelligent productivity tool.

AI agents represented by OpenAI Deep Research and Manus can automate repetitive tasks, perform big data analysis and aggregation based on incredibly powerful AI large models, provide real-time monitoring insights, and make appropriate decisions in extremely complex situations in a very short time, thereby enhancing operational efficiency for businesses. The logic of efficiency enhancement is fundamentally similar for individual learning and work efficiency. AI agents can also efficiently participate in all stages of large projects across various fields globally, from blueprint planning to implementation, significantly accelerating project progress.

For PayPal, this means transitioning from "wallet/acquiring" to the settlement foundation of the AI era. It can not only be deeply embedded in multiple product lines of Google but also occupy a key position in "Agentic AI e-commerce agents." The two parties will collaborate to establish risk control and security standards for autonomous AI agents, with PayPal providing account/identity/dispute resolution and large-scale risk control capabilities to offer a settlement infrastructure for the closed loop from AI "product selection to ordering to settlement."

For Google, after officially entering the $3 trillion market value club, the market places greater emphasis on the direct commercialization and monetization path of AI, namely the "cash conversion ability of AI narratives"—transforming AI search and AI large model capabilities into real GMV and payment revenue sharing, and this collaboration is a key piece of the puzzle.

Additionally, Google has just released the Agent Payments Protocol (AP2), which is centered on allowing agent-based AI agents to securely initiate payments under "auditable, revocable, and controlled limit" authorizations. With PayPal's participation, AP2 can be said to transition from "regulation" to "a feasible commercial closed loop"; furthermore, the high complexity of card network integration, risk control, and dispute resolution will be shared by leading PSPs, enabling a faster standardization of the "search—purchase—payment" pipeline within Google's AI computing ecosystem in Cloud / Ads / Play, enhancing AI-driven advertising conversion and developer monetization efficiency