Google Launches AI-Powered Shopping and Payment Service in Canada

Google launched a shopping and payment service in Canada on November 4, 2026, allowing users to purchase products through AI-powered conversations. Built on the Universal Commerce Protocol (UCP) infrastructure, the system enables consumers to research products through Gemini and Google Search's AI Mode and complete purchases using Google Pay without visiting retailers' websites.

U.S.-based technology company Google has introduced its AI-powered shopping service to the Canadian market, combining conversational product searches and purchasing transactions within a single system. The service aims to enable consumers to complete their purchases without switching between different e-commerce websites.

According to Google Canada, the system initially includes Lululemon, Shoppers Drug Mart, Simons, and selected retailers using Shopify's infrastructure. The company plans to add more stores to the service. The new feature reduces the need for customers to use a separate shopping cart or visit a retailer's website to proceed to checkout. However, the legal responsibility for the purchase transaction and order fulfillment remains with the respective retailer.

Google Enables Direct Payments Through Gemini

The new shopping system operates through Google's AI application Gemini and AI Mode in its search engine. Users can describe the products they are looking for in natural language, receive recommendations, compare options, and purchase suitable products directly.

Payment transactions are processed through Google Pay. The system uses payment methods and delivery information stored in Google Wallet. This eliminates the need for consumers to re-enter their card and address information when shopping at different stores.

Eric Morris, Head of Retail at Google Canada, stated that artificial intelligence is changing consumers' search habits. Morris explained that purchasing decisions remain under the user's control in the new service and that payments are processed securely.

UCP Infrastructure Powers AI-Driven Shopping

The Universal Commerce Protocol, which Google helped develop, was designed as an open technology standard that enables AI agents to communicate with retailers, payment providers, and various commerce systems. UCP aims to facilitate interoperability between different systems throughout the shopping process, from product discovery to purchasing and post-purchase transactions.

Starting in 2027, the company plans to offer simpler UCP integrations through Google Merchant Center. This development will make it easier for retailers to offer their products for direct purchase through Gemini and AI Mode. Google's Universal Cart feature, announced in May 2026 and launched in the United States in October, also allows products from different retailers to be combined into a single shopping cart.

Competition and Data Security Concerns in AI-Powered Shopping

Google's service in Canada was introduced at a time when technology companies are seeking to play a greater role in e-commerce transactions conducted through artificial intelligence.

Vass Bednar, Executive Director of the Canadian SHIELD Institute for Public Policy, warned that AI-powered shopping systems could limit the options presented to consumers and lead to the concentration of purchasing data among major technology companies.

David Soberman, Professor of Marketing at the University of Toronto's Rotman School of Management, also noted that AI agents may not always offer the lowest prices and advised consumers to compare prices across different sources.

Santo Ligotti, Vice President of the Retail Council of Canada, stated that the system could facilitate price comparisons and support consumers in making purchasing decisions.

According to Google Canada's estimates, 59% of consumers in the country will use AI tools for their year-end shopping. However, research conducted by Deloitte and PwC projects the corresponding figures at 39% and 28%, respectively.