Google and PayPal have entered a multi-year strategic partnership to integrate advanced AI-powered shopping and payment experiences across Google platforms.

Under the deal, PayPal’s enterprise payments solutions, including PayPal-branded checkout, Hyperwallet, and Payouts, will be embedded into Google products such as Google Cloud and Google Play, making PayPal a key provider for processing card payments.

“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,” said Sundar Pichai, CEO of Alphabet.

The announcement boosted PayPal shares by over 3% in late afternoon trading. Earlier this month, PayPal also partnered with AI startup Perplexity, offering users early access to its Comet browser with a 12-month Pro subscription trial.