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

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

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

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

PayPal's ( PYPL ) 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 ( PYPL ) 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.

(Reporting by Juby Babu in Mexico City; Editing by Shinjini Ganguli)