Google and PayPal unite to revolutionize AI-powered shopping checkouts
Google and PayPal have teamed up to bring smoother AI-driven shopping to US retailers. The partnership was announced on 11 January 2026 at the National Retail Federation conference. It will let customers pay via PayPal when using Google’s new agentic checkout features in Search AI Mode and the Gemini app.
The collaboration centres on Google’s Universal Commerce Protocol (UCP), a framework designed to power AI-assisted shopping. PayPal will integrate its payment system into UCP, giving shoppers a familiar checkout option. While no exact launch date was given, Google confirmed the feature would arrive soon for eligible US merchants.
Agentic commerce—where AI helps complete purchases—became viable for businesses and buyers in 2021. PayPal’s backing of UCP aims to simplify large-scale adoption for retailers. The company positions itself as a trusted payment layer for this emerging shopping method. Both firms stressed their shared goal: an open, reliable commerce ecosystem. PayPal’s involvement in UCP aligns with its push to build infrastructure that supports seamless, AI-powered transactions.
The integration will let US shoppers use PayPal within Google’s AI checkout tools. Retailers gain a streamlined way to adopt agentic commerce through UCP. The move reflects a broader shift toward automated, AI-assisted purchasing experiences.
