Executives from PayPal (PYPL) and Google (GOOGL) are backing cryptocurrency as a payment layer for the next wave of AI commerce. They said AI agents cannot use normal banking systems. Meanwhile, crypto is being positioned as a better payment tool for automated systems online. The shift reflects growing interest in agentic commerce, where AI tools handle tasks and payments directly. As demand grows, firms are now preparing for a future built around AI-driven trade.
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Google and PayPal Back Crypto Rails for AI Commerce
At a conference in Miami, Richard Widmann, Global Head of Web3 Strategy at Google Cloud, said AI agents cannot work with normal banking systems the way humans do. Widmann explained that banking and regulatory rules make it impossible for automated systems to work. Instead, crypto is now viewed as a machine-readable payment layer for online AI operations.
Meanwhile, Google has since shown interest in AI commerce through its former Agentic Payments Protocol (AP2). This system lets AI agents buy goods and handle money for users through a set of rules. Notably, AP2 was later donated to the non-profit FIDO Foundation, and now has more than 120 partners, including PayPal.
Widmann compared the move to the x402 payment standard built for internet-native payments. He added, “Open dialogues and open standards are really the foundation you need to build on.”
PayPal also sees AI agents as the next major shift in digital commerce. May Zabaneh, Senior Vice President and General Manager of Crypto at PayPal, compared this change to when people transitioned from physical stores to online shopping. She said PayPal is already showing interest in making its PYUSD stablecoin the main tool for these tasks. According to her, PYUSD is “a very natural programmable layer for payments,’ especially as commerce trends are moving fast toward AI, global growth, and tokenization.
Doubts About Merchant Readiness and Trust Grow
Currently, merchants are falling behind as AI agents become more common on online platforms. Zabaneh revealed that most merchants now have AI agents visiting their sites, but few have set up systems that these tools can easily read. She also said that merchants need to get ready for this shift, comparing it to when businesses had to adapt as shopping moved from physical stores to the internet.
At the same time, trust and security remain uncertain across the industry. It’s still unclear who is responsible when an AI agent makes a wrong purchase. While Zabaneh said the industry needs clearer answers on this, Widmann suggests spreading control of digital keys among multiple parties to reduce risk. Google has also stepped in, expanding its Cloud KMS tool into crypto custody to help manage security as AI agent usage grows.
Is PayPal Stock a Buy, Hold, or Sell?
PayPal (PYPL) is rated a Hold based on TipRanks analyst consensus. The view reflects caution as growth slows and competition in payments continues to rise. Analysts remain uncertain about PayPal’s future demand and its ability to hold up across digital and AI-linked payments. Notably, Wall Street analysts have projected an average price target of $49.32, implying an 8.49% upside. For more information on this stock, investors can track PYPL’s ratings, price targets, and performance on the TipRanks Stocks Comparison Center.
