At the National Retail Federation’s 2026 conference in New York, Google introduced the Universal Commerce Protocol (UCP), an open standard designed to streamline the interaction between agents and systems for retail transactions. UCP enables consumers to purchase products directly through Google’s AI Mode in browsers and the Gemini app. Initially leveraging payment data from Google Wallet, it plans to integrate PayPal in the future. Co-developed with input from leading retailers like Shopify, Etsy, and supported by payment giants like Visa and MasterCard, UCP aims to enhance sales and product discoverability. However, the shift may pose risks for merchants, as they could lose direct consumer interactions, impacting their control over cross-selling strategies. With upcoming features like personalized recommendations and loyalty programs, UCP represents a significant advancement in ecommerce, but poses challenges regarding merchant relationships and customer data retention. This evolution in agentic commerce necessitates collaboration among consumers, merchants, and payment providers to succeed.
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