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PayPal has confirmed that it will support Universal Commerce Protocol (UCP) developed by Google, an artificial-intelligence-driven commerce standard. The new technology is expected to appear soon as a payment option within PayPal’s redesigned checkout experience, according to a press release issued over the weekend.
PayPal’s President and CEO Alex Chriss said on X that the adoption of UCP represents the “next phase” of the partnership between the two companies, which was first announced in September last year. The collaboration is now moving from announcement to practical implementation, with AI becoming a direct component of the payment flow.

Google Unveils UCP as the Foundation of Agentic Commerce
Google officially introduced UCP on Sunday during the annual National Retail Federation conference in New York. Company executives described the protocol as an open, platform-agnostic commerce standard designed to connect artificial-intelligence systems, merchants, and payment providers through a shared “common language.”
The goal of UCP is to enable so-called agentic commerce, where AI agents handle product discovery, checkout, and post-purchase support. At the conference, Google said the protocol marks a significant expansion of autonomous shopping agents across the retail ecosystem.

An Open Standard Designed to Replace Complex Integrations
According to Google, UCP is built to be open and compatible with any credential provider, dramatically reducing the need for one-off integrations between individual AI agents and merchants.
Vidhya Srinivasan, Vice President and General Manager of Google Ads & Commerce, explained in a blog post that instead of requiring a unique connection for each agent, UCP allows all agents to interact seamlessly within a unified framework.
UCP is the second open agentic commerce protocol developed by Google in the past two decades, following last year’s launch of the Agent Payments Protocol (AP2). The company emphasized that UCP is designed to work alongside its other agent-based systems, including Agent2Agent and the Model Context Protocol (MCP).
In the coming months, Google plans to expand UCP with additional shopping capabilities, such as related-product recommendations, loyalty and rewards programs, and highly personalized shopping experiences delivered across its platforms.

PayPal and Major Retailers Helped Shape UCP
Google said the protocol was developed with input from several major retailers and e-commerce platforms, including Shopify, Etsy, Wayfair, Target, and Walmart.
Vanessa Lee, Vice President at Shopify, said the company contributed its extensive experience in building large-scale checkout systems. She noted that Shopify drew on decades of insights from supporting millions of merchants to help ensure that UCP is a robust and scalable commerce standard.

PayPal: Interoperability Is Key to Mass Adoption of AI Commerce
PayPal executives believe that limited interoperability has been one of the main barriers preventing agentic commerce from reaching large-scale adoption. According to Prakhar Mehrotra, Senior Vice President and Head of AI at PayPal, protocols like UCP allow merchants to connect to multiple AI environments at once while maintaining trust, transparency, and control.
Michelle Gill, General Manager of Small Business and Financial Services at PayPal, added that the future of commerce will be defined by how effectively the industry builds open and trusted infrastructure. She said PayPal’s support of, and collaboration with, Google on UCP demonstrates how a trusted payments layer can turn agentic commerce into a real-world experience for consumers.

Analysts Warn of Potential Loss of Direct Customer Contact
Not all industry observers are fully convinced that agentic commerce will succeed without trade-offs. Richard Crone, CEO of Crone Consulting, warned that if checkout flows migrate into AI systems such as Google’s Gemini, merchants could lose their final point of direct contact with customers.
According to Crone, product detail pages are the “fuel” that powers agentic commerce engines. If control over those pages shifts away from merchants’ own websites, retailers may lose leverage—even as Google and Shopify promise increased sales, improved discoverability, and higher conversion rates by enabling off-site selling through AI platforms.

PayPal Expands Its Footprint in Europe and the United States
The UCP announcement follows shortly after PayPal Ventures participated in a funding round for European payments company Klearly, which raised €12 million in a completed Series A round. The investment brought Klearly’s total funding to €20 million, with participation from Italian Founders Fund, Global PayTech Ventures, Antler Elevate, and Shapers. Based in Amsterdam, Klearly processes payments for more than 4,000 merchants and plans to expand deeper into Italy and Belgium.
In the United States, PayPal also strengthened its physical presence in New York by signing one of the city’s largest office leases of the year. The company agreed to a ten-year lease covering approximately 261,000 square feet (around 21,000 square meters) at 345 Hudson Street and 555 Greenwich Street in Hudson Square—a neighborhood that also hosts offices for Google and Disney.

#Paypal , #Google , #fintech , #ArtificialInteligence , #INNOVATION

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While PayPal was one of the first major financial players to launch its own stablecoin, the company’s CEO Alex Chriss says adoption in the US is still facing significant hurdles. Why are Americans not embracing these digital, price-stable currencies?

📲 “People Don’t See a Reason to Use Them,” Says Chriss
According to Chriss, everyday consumers in the US simply don’t see a compelling reason to switch. Despite increasing media coverage and regulatory discussions, most people are satisfied with their current tools—credit cards, bank transfers, and payment apps. The benefits of stablecoins remain unclear to them.

🌍 Cross-Border Payments as a Gateway
PayPal is currently focusing on cross-border payments as a key use case for stablecoins. In underserved regions where legacy banking systems are inefficient, stablecoins offer speed, low fees, and transparency.
Chriss believes this is where users can truly appreciate the power of stablecoins. PayPal is therefore investing in infrastructure, education, and partnerships to bring stablecoin utility into the real world.

⚖️ New Laws Like the GENIUS Act Could Unlock Growth
Legislation could play a vital role. The GENIUS Act, already passed by the Senate and awaiting a House vote, aims to create a clear regulatory framework and build trust in stablecoins among businesses and consumers alike.
Another key bill, focused on the broader digital asset market, would determine whether the SEC or the CFTC should regulate various types of tokens and cryptocurrencies. This clarity could pave the way for innovation and broader adoption.

🧭 The Road Ahead: Uncertain, But Promising
While the technology is ready, mass adoption remains elusive. Chriss believes that clearer regulations and real-world benefits will eventually win over US consumers.
Once people understand the practical advantages and feel secure using stablecoins, they could become a new standard not just for international transfers—but also for everyday spending.

#Stablecoins , #Paypal , #CryptoAdoption , #DigitalAssets , #Regulation

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“