PayPal's strategic partnership with Google has advanced to online shopping, as Android Pay users will soon have PayPal as a funding option for e-commerce.

Google made the announcement about PayPal during its Google I/O developers' event May 17, expanding upon the agreement last month in which PayPal became an Android Pay option at the point of sale.

Google also revealed this week that it was providing a Payment Request API for Chrome developers as a way to make the online checkout process easier when using Android devices.

Bloomberg News

For PayPal, the new arrangements with Google and Android Pay continue a trend for the former eBay unit in creating partnerships that expand PayPal's exposure to more merchants.

The shift in PayPal's strategy kicked off midway through 2016 when the company established a working relationship with Visa in which PayPal would equally encourage its account holders to link to Visa cards as opposed to steering them only to checking accounts.

PayPal established a similar setup with Mastercard and also reworked its agreement with Discover for better access to cardholders, acquirers and merchants. An earlier deal with Discover in 2012 for exposure to brick-and-mortar POS never gained much traction.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry