PayPal (PYPL.US) teams up with Alphabet Inc. Class C (GOOGL.US)! The "AI autonomous payment model" is becoming a reality.

One of the world's largest digital payment service providers, PayPal (PYPL.US), has established an online shopping partnership with the US technology giant Alphabet Inc. Class C (GOOGL.US), combining their respective digital payment models and artificial intelligence tools for global transactions. This heavyweight collaboration will add PayPal's digital checkout functionality to multiple Alphabet Inc. Class C (Google) brand products and create a collaborative benchmark based on an "artificial intelligence intelligent agent" for placing orders to final payment, helping sellers showcase their products to specific customers. According to reports, this joint announcement made on Wednesday will add PayPal's exclusive online checkout feature to multiple Google flagship products and initiate a comprehensive collaboration at the artificial intelligence level, helping sellers showcase their products to specific customers and prepare for a world where an autonomously operated AI agent represents consumers in shopping. Both parties are committed to establishing core standards to ensure that merchants, consumers, and autonomously operated AI agents can operate with full risk control and payment security features. This collaboration comes shortly after Alphabet Inc. Class C announced a new agent payment protocol aimed at securely initiating AI-driven digital payments. "This is an opportunity for two technology companies to come together and think about what the future of commercial landscape will look like," said PayPal CEO Alex Chriss in an interview. Chriss stated that the new products and services closely related to this agreement will be launched as early as the fourth quarter. This partnership may allow an autonomous AI agent to shop on behalf of consumers, using PayPal's vast customer data to find products that match the shopper's preferences, known as "agentic commerce." Chriss pointed out that PayPal's data empowers AI to "become your true deep and understanding shopping companion." On the payment side, PayPal Enterprise Payments will process digital card transactions for Google Cloud, Google Ads, and Google Play. Meanwhile, PayPal is also expanding a suite of products to enable customers to pay using cryptocurrencies. "A large part of the future business landscape will be AI agent-driven and powered by encryption technology," Chriss said. The expanded collaboration with Alphabet Inc. Class C comes after the artificial intelligence tech company Perplexity chose PayPal for its "artificial intelligence + search" AI platform to provide significant support for AI agent-driven commerce, highlighting the importance of PayPal's digital payment system in the future AI era. What does this partnership mean for PayPal and the over $3 trillion market value Alphabet Inc. Class C? This collaboration ties Alphabet Inc. Class C's AI tool distribution + open protocol (AP2) with PayPal's payment/identity/risk control infrastructure. For PayPal, it is an expansion of enterprise-level acquiring and control points within Agentic e-commerce AI agents; for Alphabet Inc. Class C, it is the actual implementation of the "AI agent closed loop" from standardization to settlement, with the recent release of the Alphabet Inc. Class C Agent Payments Protocol (AP2) open protocol, aiming to land during the Q4 shopping season and early Agentic AI agent transaction demands rising, indicating the maturity of encryption/stablecoin pipelines. Companies' urgent need to improve efficiency and reduce operational costs has recently led to significant advancements in the application of AI software in two core categories: generative AI applications and widespread use of AI agents. The emergence of AI agents with autonomous capabilities (Agentic AI) indicates the transition of artificial intelligence from an informational tool to a highly intelligent productivity tool. AI agents represented by OpenAI Deep Research and Manus can automate repetitive tasks, perform big data analysis and compilation based on powerful AI models, provide real-time monitoring and insights, and make appropriate decisions in complex situations in a short period of time, thereby enhancing business efficiency. This logic is similar for personal learning and work efficiency. AI agents can also efficiently participate in all stages of large-scale projects in various fields globally, from blueprint planning to implementation, significantly accelerating project progress. For PayPal, this means transitioning from a "wallet/acquiring" to a settlement base in the AI era. Not only can they embed deeply into multiple Google product lines, but also hold a key position in the "Agentic AI e-commerce intelligent agent", cooperating to establish risk control and security standards for autonomously operated AI agents. PayPal provides the infrastructure for AI "selection to order to settlement" closed loop with account/identity/dispute handling and large-scale risk control capabilities. For Alphabet Inc. Class C, after officially entering the $3 trillion market value club, the market values the direct commercialization and monetization path of AI, i.e., the "cashability of AI narrative" - converting AI search and AI big model capabilities into real GMV and payment revenue shares, this collaboration is a key piece. Furthermore, Alphabet Inc. Class C has just released the Agent Payments Protocol (AP2), whose core is to allow agent-based AI agents to securely initiate payments under "auditable, revocable, and controlled limits" authorization. With PayPal joining, AP2 is transitioning from "standardization" to a "commercially implementable closed loop"; and with high complexity card network integration, risk control, dispute handling shared by leading PSPs, it will quickly standardize the "searchshoppay" pipeline in the Cloud/Ads/Play AI computational ecosystem of Alphabet Inc. Class C, improving AI-driven ad conversion and developer monetization efficiency.