Back to top

Image: Bigstock

PayPal & Google Tie-Up: Is Growth Just Around the Corner?

Read MoreHide Full Article

Key Takeaways

  • PayPal announced a multi-year partnership with Google to improve digital commerce experiences.
  • The two aim to create AI-powered shopping and push secure, scalable payment methods.
  • PayPal services will be integrated across Google products, including Cloud, Ads and Play.

PayPal Holdings (PYPL - Free Report) announced a multi-year partnership with Google. Their goal is to deliver innovative solutions to businesses and consumers and create smooth digital commerce experiences across various platforms.

This partnership is focusing on creating new AI-powered shopping experiences and developing standards that will help shape the future of agentic commerce across the industry. PayPal brings its global payment system, data-driven personalization and trusted identity solutions, while Google adds its AI experience. Together, they are pushing secure, open and scalable payment methods like Google’s Agent Payments Protocol.

PayPal’s services, like PayPal-branded checkout, Hyperwallet and PayPal Payouts will be part of many Google products to make shopping seamless. To handle card payments, PayPal Enterprise Payments will be integrated across Google products such as Google Cloud, Google Ads and Google Play. PayPal will also work with Google Cloud to upgrade its technology and payment platform for the future.

These product innovations from both companies will help move forward the future of digital commerce by providing consumers, merchants and developers with better and more flexible tools to engage in buying and selling online.

PayPal already partners with major worldwide companies like Visa, Mastercard, Facebook, CaixaBank, HSBC, Barclays Bank, JP Morgan and Bank of America. These partnerships help improve payment experiences for billions of users globally.

PayPal’s partnership with Google and others shows its commitment to innovation. These partnerships bring new technology and easier ways to pay, shaping the future of digital shopping for everyone.

How Are PayPal’s Competitors Expanding?

Block Inc.’s (XYZ - Free Report) Cash App Afterpay, partnered with Caleres, allowing shoppers to use flexible payment options. Block’s Square was chosen as a partner for Purdys Chocolatier, to handle point-of-sale and business operations across Canada. Lately, Square partnered with Uncle Sharkii Poke Bar and Bambu Dessert Drinks to boost growth.

Affirm Holdings, Inc. (AFRM - Free Report) continues to strengthen its position as a leader in the Buy Now, Pay Later space by building strong partnerships across various industries. Affirm recently announced collaborations with ServiceTitan, a software platform that powers the trades, and Vagaro, a software dedicated to the beauty, fitness and wellness sectors.

PYPL’s Price Performance, Valuation & Estimates

Shares of PayPal have declined 18.8% year to date, underperforming both the broader industry and the S&P 500 Index.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 12.18X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 21.89X.

Zacks Investment Research
Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests 12.5% growth year over year.

Zacks Investment Research
Image Source: Zacks Investment Research

PayPal currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PayPal Holdings, Inc. (PYPL) - free report >>

Affirm Holdings, Inc. (AFRM) - free report >>

Block, Inc. (XYZ) - free report >>

Published in