Google and PayPal have entered a multi-year strategic partnership to bring new AI shopping and payment experiences to their users, the companies said Wednesday.

PayPal's shares ticked up over 3% in late afternoon trading.

The digital payments company's solutions, including PayPal-branded checkout, Hyperwallet and Payouts solutions, will now be integrated into a range of Google products.

"Through this partnership, PayPal will use our industry-leading AI to enhance services and security, and we will more deeply integrate PayPal's innovative payment capabilities for a better experience across Google products and platforms,"  said Sundar Pichai, CEO of Google parent Alphabet .

PayPal's Enterprise Payments will be a key payment provider, processing card payments across products such as Google Cloud and Google Play, among others.

Earlier this month, PayPal said it has partnered with Perplexity to provide its users early access to the company's new AI-powered Comet browser through a 12-month trial of its Pro subscription. The AI startup provides artificial intelligence search tools that deliver information summaries to users.