Google (GOOGL) is partnering with Coinbase (COIN) to enable customers to pay for cloud services with cryptocurrencies starting in 2023.
The burgeoning cloud business is helping Google parent company Alphabet diversify its revenue stream from online advertisements. Cloud services now account for 9% of Alphabet’s annual revenue, up from less than 6% three years ago.
Cryptocurrency exchange Coinbase generates most of its revenue from retail transactions, but says it now plans to move its data-related applications to Google from Amazon Web Services.
The Google Cloud Platform will initially accept cryptocurrency payments from only a handful of customers in the Web3 world starting early next year.
Over time, Google will allow more customers to make payments with cryptocurrencies via Coinbase Commerce, which currently supports 10 cryptocurrencies, including Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH) and Litecoin (LTC), among others.
Terms of the deal between Google and Coinbase weren’t disclosed. But Coinbase is expected to earn a percentage of transactions that go through it via Google Cloud.
Google had said in May of this year that it was exploring the possibility of adding support for payments with cryptocurrencies.
Google’s stock is down 33% this year and trading at $97.86 U.S. per share. The stock split on a 20-for-1 basis in July.
Coinbase’s stock is down 73% year-to-date at $67.04 U.S. a share.
