Google Pay is boosting the AI Mode by embedding two popular BNPL methods from Affirm and Klarna providers into its Gemini app and Google search functionality. The update combines agentic commerce mechanisms with flexible checkout options.
Both Klarna and Affirm announced their expanded cooperation with Google on May 12. Affirm’s pay-over-time options and Klarna’s four interest-free installments and longer-term financing for larger purchases will be integrated into Google Search, including AI Mode, and the Gemini app and offered to customers as flexible payment methods when checking out with Google Pay. At launch, the new features are available to U.S. users.
Instalment payouts accessible via agentic interfaces are working on Google surfaces powered by the Universal Commerce Protocol (UCP) – the tech giant’s open standard enabling conversational AI interactions to navigate customers to purchasing decisions and ultimately checking out via Google Pay.
Klarna’s flexible payments have been earlier added to Google Pay, Google Store, Google Play, and Google Cloud platforms. While previously the functionality covered only traditional online and offline purchases, with the development of UCP, agentic-led shopping experience can also now be flexible in payment terms.
“As shopping moves into conversational and AI-driven environments, flexible payments become essential infrastructure for how people buy,” said David Sykes, Chief Commercial Officer at Klarna. “Our partnership with Google brings Klarna directly into these moments of decision, giving consumers more control over how they pay.”
Affirm has also been available for Google Pay wallet and browser purchases on supported apps and websites since 2023. However, with agentic payments, the firm’s real-time credit-decisioning mechanism becomes even more relevant.
“As AI becomes a more active part of how people discover and buy, it’s critical that the payment options remain secure and reliable,” said Ashish Gupta, VP/GM, Merchant Shopping at Google. “Our work with Affirm brings transparent, flexible payment options into these new journeys, so as shopping evolves, people can continue to make decisions with confidence.”
The advantage of Affirm BNPL loans is that the company is an underwriter at the transaction level, which allows it to make informed decisions on each operation separately, offering personalized payment terms applicable to this individual purchase.
Google is actively developing its agentic commerce infrastructure, having attracted major European fintechs such as Revolut and Nexi on board of its AI payment initiatives. The tech giant planned to spend about $75 billion in capital expenditures during 2025, mainly for AI infrastructure such as servers and data centers. In 2026, the amount of Google forecast expenditures rises more than twice to $175 – $185 billion range.
