Google parent company Alphabet (GOOGL) says it has formed a multi-year strategic partnership with PayPal (PYPL) to advance e-commerce and payment solutions.
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According to a news release from the two companies, the collaboration will integrate PayPal’s payment solutions throughout various Google products, including PayPal-branded checkout, Hyperwallet, and PayPal Payouts solutions. Going forward, PayPal will serve as a key payment processor for Google Cloud, Google Ads, and Google Play.
“PayPal is a leader in digital commerce, and we’re excited to expand our work together to make online transactions simpler and more secure,” said Sundar Pichai, CEO of Alphabet, in the press release. “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…”
Partnership
The partnership between Alphabet and PayPal will also focus on developing artificial intelligence (AI) shopping experiences and establishing standards for what the companies call “agentic commerce.” PayPal will combine its global payment infrastructure with Google’s AI expertise to create new digital commerce options.
PayPal will also partner with Google Cloud to update its technology infrastructure and applications to support its next-generation e-commerce and payment platform, said the companies. “Together with Google, we are leading the way for digital commerce, ensuring greater opportunities for merchants and users worldwide,” said Alex Chriss, CEO of PayPal.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 38 Wall Street analysts. That rating is based on 29 Buy and nine Hold recommendations issued in the last three months. The average GOOGL price target of $236.85 implies 5.08% downside from current levels.
