Google and PayPal have entered a new multi-year deal. Their aim is to build smarter shopping and payment tools using AI. The companies announced the news on Wednesday. PayPal’s stock went up more than 3% after the update.

What the Partnership Includes

The plan is simple. Google brings its AI strength. PayPal brings its payment systems. Together, they want to make online shopping easier and safer.

PayPal’s tools, like branded checkout, Hyperwallet, and Payouts, will now appear in more Google products. This means users will see PayPal more often when paying or receiving money.

Google’s Vision

Google CEO Sundar Pichai explained the deal. He said Google will use its AI to improve PayPal’s services. At the same time, PayPal will offer stronger payment options inside Google products. The goal is a smoother and more secure user experience.

Where PayPal Will Be Used

PayPal will handle payments for many Google services. These include Google Play, Google Cloud, and other products. Developers, businesses, and everyday users will now have PayPal as an option. This move connects both companies more closely.

PayPal’s Growing AI Efforts

This is not PayPal’s only AI move. Earlier this month, PayPal partnered with Perplexity. That deal gave PayPal users early access to Perplexity’s AI browser called Comet. Subscribers got a free 12-month trial of its Pro plan. The browser uses AI to give quick and clear answers.

Why It Matters

Big tech companies are racing to lead in AI. Shopping, payments, and search are changing fast.

For Google, this partnership makes its payment systems stronger. For PayPal, it means deeper access to Google’s platforms. For users, it could mean faster checkouts, better security, and smarter shopping tools.

FAQs

1. How will PayPal appear in Google products?

PayPal checkout, Hyperwallet, and Payouts will be built into many services.

2. What role will AI play?

AI will improve security, make faster payments, and give smarter shopping support.

3. Has PayPal made other AI deals recently?

Yes. It worked with Perplexity to give users free access to the Comet AI browser.

4. Why did PayPal’s stock rise after the news?

Investors see the deal as a strong move for PayPal’s future growth in AI and payments.