PayPal and Google Want to Help You Shop Online With AI

PayPal and Google are teaming up to help you shop online with artificial intelligence.

As part of a multiyear deal, Google will embed PayPal (PYPL) across its platforms for a more seamless payment experience, while PayPal will use Google’s AI to enhance its e-commerce services, the companies announced yesterday.

Google and Alphabet (GOOGL) CEO Sundar Pichai said he expects the tie-up to drive a “better experience across Google products and platforms,” with PayPal CEO Alex Chriss saying it could bring “greater opportunities for merchants and users worldwide.”

The move comes as Google works to expand its role in agentic commerce, with AI agents that can help shoppers find and compare products, as well as make purchases online. Earlier this week, the company unveiled a new software standard that aims to make chatbot-enabled purchases easier, and more reliable.

Shares of Google parent Alphabet were up close to 1% near $152 in recent trading, just below an all-time high set earlier this week. They’ve added roughly a third of their value this year as the tech giant has seen revenues surge and touted signs of success with its AI initiatives. Meanwhile, PayPal’s stock was little changed around $69 Thursday, leaving it down some 20% this year after a disappointing second quarter, with some Wall Street analysts suggesting it could be a while before the partnership stands to make a meaningful difference for PayPal’s results.

Morgan Stanley analysts said in a note to clients Thursday that they view the partnership as a “step in the right direction” for PayPal, though they added it may be “unlikely to meaningfully move the needle near-term.” They maintained a neutral rating and $75 target for the stock, a bit below the $80 mean of analysts surveyed by Visible Alpha.