Google Wallet & PayPal

Written By Caroline Hometh

Google Wallet & PayPal: Users are no longer able to add or use PayPal accounts in Google Wallet.

Google announced that PayPal can no longer be a funding source for U.S. Google Wallet users. Existing PayPal tokens will be auto deleted; new links were blocked back in April.

Users can still add PayPal branded debit cards to Google Wallet, but Wallet will no longer surface PayPal transaction history. Users must re-enter card or bank credentials and update any recurring payment mandates.

Why does this matter? First, friction. Every forced re-tokenization risk abandonment at the point of sale. Merchants that lean on Google Pay in-app or on web should monitor conversion dips and proactively email customers about payment method updates. Second, failure-to-bill risk looms for subscription businesses.  Anything still anchored to the old PayPal funding source will decline after the cutoff.

Strategically, the split underlines diverging wallet playbooks. Google is doubling down on its own network-tokenized credentials and bank-functional rails like FedNow, while PayPal pushes branded checkout, Venmo, and its emerging BNPL franchise. The once complementary proposition now feels redundant, and neither side wants to be a silent partner.

The wallet wars are re-sorting partners. We recommend payment flows that can survive those breakups and keep your customer lifecycle strong.

Caroline Hometh https://www.linkedin.com/in/carolinehometh/
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