Payment services Klarna and Affirm announced an expansion of their partnership with Google, enabling users in the U.S. to complete purchases directly within Google Search or AI-powered services while choosing installment payment options without being redirected to third-party websites.
The new integration will allow Google Pay users to pay for products using flexible financing options directly during checkout in Google Search, including AI Mode, as well as in the Gemini app. Klarna will offer four interest-free installments and long-term financing for more expensive purchases. Affirm will provide users with customized payment schedules following an instant eligibility check.
The companies are focusing on the development of agentic commerce, where purchasing decisions are made through conversations with artificial intelligence (AI). Google believes payment methods should adapt to this new format of online shopping. According to Ashish Gupta, VP and GM of Merchant Shopping at Google, users want secure, transparent, and flexible payment options directly within chatbot interactions.
David Sykes, Chief Commercial Officer at Klarna, stated that as e-commerce shifts toward “conversational and AI-driven environments,” flexible payment tools are becoming a key part of the purchasing process. According to him, the integration with Google is designed to give users greater control over how they pay for products at the moment they decide to buy.
Affirm’s SVP of Product, Vishal Kapoor, emphasized the importance of transparent installment payment terms. He noted that users should clearly understand the conditions of loans or split payments, especially when purchases are made through AI services. The company stated that before confirming payment, users will see the full order cost, payment schedule, and final repayment date. Affirm also highlighted the absence of hidden fees and late payment penalties.
The integration is built on the Universal Commerce Protocol, an open standard for AI commerce that Google is promoting as the foundation for future digital shopping experiences. Affirm already introduced an early version of a BNPL extension for the protocol to help establish unified installment payment standards across the AI services ecosystem.
The rollout of the new payment features for users and merchants in the U.S. will begin in the coming weeks.
A month earlier, Visa introduced a solution allowing businesses worldwide to use AI agents in e-commerce through a single integration, primarily for making purchases and processing payments. Among other features, the solution also supports the Universal Commerce Protocol.
