Google Pay enables Paypal as payment method for online merchants

To provide merchants with more easy ways to accept payments online, tech giant Google Pay has joined hands with online payment firm Paypal.

With this collaboration, customers will be able to link their PayPal account to Google Pay. The users will no longer have to sign in to PayPal when they use it with Google Pay once they link their PayPal account.

The collaboration will also allow customers to switch between debit cards, credit cards, their PayPal account, and more just by choosing Google Pay at checkout, said the Google on its blog post.

PayPal merchants who enable its acceptance through Google Pay can continue to get the PayPal benefits they already enjoy, it added.

The development, which will be implemented from next week, won't have any impact on existing merchant benefits. They can continue to receive benefits including getting payments directly to their PayPal Business Account within minutes, no minimum processing requirements, as well as seller protection on select transactions.

Google has also explained the Paypal integration process for new users in easy steps.

Google and Paypal have been strategic partners for the last couple of years. Paypal first became a payment method on Google's platform in 2017.

Later next year, users, who added Paypal as payment method were allowed to pay for Google's services or products through Google Pay.

Last year PayPal has launched PayPal for Business, an app for small, medium and freelancing merchants in India. It was mainly aimed at freelance merchants as well as small merchants going online for the first time.

In India, Google Pay, along with its main rivals Paytm and PhonePe, have been aggressively pushing to expand their merchant networks.

As per a report in last month, Paytm claimed to be a leader in UPI merchant transactions with around 60% of market share.

However, Razorpay in its report ‘Era of Rising Fintech‘ in April said Google Pay accounted for 54% of merchant transactions.

Its rival Paytm and PhonePe were way behind with 9.7% and 11.9% respectively merchant transactions on the platform.