PayPal to accelerate its hybrid cloud strategy with Google cloud
By: Elah Mae Ariate
June 09, 2021
Google Cloud will collaborate with PayPal to leverage the cloud's power to make shopping and e-commerce easier, faster, and more secure.
PayPal and Google cloud announced that they are deepening their relationship to further accelerate PayPal’s Digital Transformation and evolving customer needs.
Under this expanded partnership, Google Cloud will provide both infrastructure and analytics capabilities. This will help PayPal’s growth and allow the company to process transactional data on a large scale.
For over 20 years, the payments giant has been at the forefront of the digital payment revolution. They launched their hybrid cloud strategy last year by signing a multi-year contract with Google Cloud, according to the report.
Now, PayPal, which has grown at a breakneck pace since becoming an independent company in 2015. They are accelerating their hybrid cloud strategy by moving more of its core infrastructure and workloads to Google Cloud.
Why PayPal accelerate digital transformation?
The reason for this shift, according to the report, is an increase in digital commerce. In addition, the global pandemic causes increased user traffic. As a result, PayPal’s total active customer accounts increased by 24 percent, according to PRNewswire. As of the end of the first quarter of 2021, there were 392 million active users.
According to the report, PayPal’s profit tripled in the fourth quarter of 2020, generating US$61.12 billion in revenue, up from US$4.96 billion. This is because the company capped off the strongest quarter in its history, PayPal CEO, Dan Schulman said. It is driven by the accelerated adoption of digital payments.
“E-commerce has skyrocketed during the pandemic. People are spending less money,” says Derek White, Google Cloud’s VP of Global Financial Services. As a result, payment service providers are in high demand. “We are collaborating with PayPal to leverage the cloud’s power to make shopping and e-commerce easier, faster, and more secure. He also stated that this is a win for both businesses and consumers.”
Helping PayPal process transaction faster
Google Cloud infrastructure solutions are supporting PayPal. As a result, PayPal was able to add capacity to their infrastructure in a matter of hours. This process usually takes months to complete, PRNewswire reported.
Furthermore, most of its online transactional data is stored in its SAP S/4HANA (High-Speed Analytical Appliance) database. PayPal was able to leverage SAP’s Financial Products Subledger, which was delivered on Google Cloud at massive scale. It enables them to process high-volume transactions quickly. In addition, to analyze purchasing trends at a high volume with low latency.
“We can only develop, build, and deploy quickly if our infrastructure is as agile as we are,” says Wes Hummel, VP, Site Reliability and Cloud Engineering at PayPal. “By supporting the power of the cloud, our teams can focus on providing the best products, capabilities, and services to our customers. As part of our strategic partnership, we’re collaborating with Google Cloud to scale and secure our infrastructure for the future.”