PayPal and Mastercard Unveil New Benefits
Mastercard and PayPal have expanded their partnership to bring new benefits to their customers, PayPal merchants and financial institutions.
The most significant change is that consumers can use their Mastercard account via PayPal to make in-store purchases. PayPal will offer tokenization services from Mastercard at POS registers, which will allow PayPal Wallet users to make in-store purchases at more than five million contactless payment-enabled merchants.
In addition, customers and small businesses will now be able to instantly cash out their PayPal accounts to a Mastercard debit card. PayPal will also provide incentives to those meeting certain financial volumes and will no longer have to pay a digital wallet operator fee.
“Customer choice and partnership are fundamental principles for PayPal that guide how we operate as a company, giving our customers greater opportunities to more easily manage and move their money online, in app and in-store,” said Dan Schulman, president and CEO of PayPal. “With each partnership agreement that we sign, we further expand the ubiquity and value of the PayPal brand and improve our own economics. Mastercard has been a trusted partner for many years. By collaborating and innovating together we will continue to help move digital payments forward and improve payment experiences for our mutual customers.”
“Whether paying in the physical or digital world, consumers want to see the familiar Mastercard brand from their chosen issuer,” said Ajay Banga, president and CEO of Mastercard. “The expansion of the partnership with PayPal further reinforces our commitment to our billions of cardholders across the globe to provide them the choice to pay when, where and how they want while delivering the simple and secure payment experience they’ve come to expect from Mastercard.”
Other changes include:
- Customers will see a digital representation of their Mastercard during PayPal transactions, which will reassure them that their payments are safe and secure.
- Mastercard will appear as the default payment on PayPal, which should make transactions quicker and easier.
- Merchants that use Braintree, a PayPal company, will be able to integrate Masterpass into their checkout experiences.
The deal also included a multi-year extension of the PayPal Business Debit Mastercard program in the United States.