Hi Jeff,
My knowledge around security and encryption is limited, but I assume it's all part of the delivery of https protocol services. The two basic use cases are:
1. When a customer on my site initiates a purchase, data such as seller id, product name, quantity, and price are sent over https to PayPal where the customer completes the purchase on PayPal's UI and infrastructure.
2. When PayPal confirms payment of the transaction (sometimes several days later if an eCheck was used) then PayPal will send confirmation to my site's IPN endpoint over https, which then triggers my order fulfilment process.
The way I understand it, after PayPal's end date for SHA-256 implementation, my https transactions with PayPal will fail if Google does not support SHA-256 encryption within the https protocol scheme.
Let me know if you can clarify anything. Thanks!
Brian