Google has announced a new open standard, the Universal Commerce Protocol (UCP), aimed at creating a unified framework for AI agent-based shopping. The announcement, made at the National Retail Federation (NRF) conference, marks a significant step towards streamlining how AI interacts with e-commerce platforms.
The protocol was developed in collaboration with major retail and e-commerce players, including Shopify, Etsy, Wayfair, Target, and Walmart, signaling broad industry support for a more integrated AI shopping experience.
A Unified Standard for Agentic Commerce
The core objective of the Universal Commerce Protocol is to enable AI agents to seamlessly navigate different stages of the customer journey, from product discovery and research to post-purchase support. Instead of requiring separate integrations for each function, UCP provides a common language for agents to communicate and execute tasks across various platforms.
Google clarified that UCP is designed to be compatible with other agentic protocols, such as the Agent Payments Protocol (AP2) and Agent2Agent (A2A), allowing businesses to adopt the specific extensions that best fit their operational needs.
Direct Checkout and Enhanced Discovery
In a practical application of the new standard, Google will soon leverage UCP to enable direct checkouts from eligible U.S. product listings within its AI-powered search results and Gemini apps. This feature will allow users to complete purchases using saved information from Google Pay and Google Wallet, with PayPal support expected to follow.
Tobi Lutke, CEO and founder of Shopify, highlighted the potential of this technology for personalized discovery. “This is one of the really exciting parts about agentic,” he said. “It’s really good at finding people who have specific interests and finding the product that is just perfect for them. This kind of serendipity is where the best of commerce happens.”
New Tools for Merchants
Alongside the protocol, Google is rolling out new tools for merchants to enhance their visibility and engagement within AI-driven environments. Brands will now be able to offer targeted discounts to users based on their specific AI search queries, capturing high-intent customers at the moment of consideration.
Furthermore, merchants can now integrate their own branded AI-powered Business Agents directly within Google Search to provide instant, conversational answers to customer questions. Retailers like Lowe’s, Michael’s, and Reebok are already utilizing this feature to improve customer service and engagement.
The MENA E-Commerce Angle
For the rapidly growing MENA e-commerce ecosystem, Google’s UCP presents a significant opportunity. As regional online retail and D2C brands mature, adopting such standardized AI protocols could level the playing field, allowing local startups to offer sophisticated, personalized shopping experiences comparable to global giants.
This technology can help MENA retailers enhance customer engagement, streamline operations, and improve conversion rates by meeting the consumer demand for seamless, conversational commerce. For the region’s founders and VCs, this signals a critical trend: the future of e-commerce is not just mobile-first, but agent-first, and platforms that embrace this shift will be best positioned for growth.
About Google
Google is a multinational technology company that specializes in Internet-related services and products, which include online advertising technologies, a search engine, cloud computing, software, and hardware. It is considered one of the Big Five American information technology companies, alongside Amazon, Apple, Meta, and Microsoft.
Source: TechCrunch
