Following a major deal with Visa earlier in the year, PayPal has gone on to strike a second partnership with another major payments company, MasterCard.
Since splitting from eBay last year, PayPal’s strategy has involved making the online payments company a universally accepted method of payment, the Wall Street Journal reports.
This includes in-store checkout with both MasterCard’s and Visa’s mobile payments tools. MasterCard has said that this agreement will allow customers to select a credit or debit card as their default payment method and share information on transactions made using MasterCard’s tap-and-pay mobile service.
Users will also be able to pull cash from their PayPal accounts using a debit card without being charged the digital wallet fee MasterCard currently charges PayPal.
This represents an expansion of an existing partnership between MasterCard and PayPal, which allows for co-branded consumer credit cards to be produced in the United States and in Puerto Rico.
The mobile payments space is grown incredibly competitive over the past few years as both traditional payments organizations and tech companies such as Apple attempt to enter the space. Furthermore, payments providers such as the Canadian-based MintChip are always looking to overtake the endeavours of larger firms.
Several Canadian banks have gone on to develop their own finance and payments apps, allowing clients to make transactions using funds directly from their bank accounts.
WSJ reports that PayPal aims to be a “ubiquitous” payments — one that can transform internet browsers into buyers. PayPal has reportedly claimed to be a checkout company, betting on a merchant’s willingness to pay to remove any friction throughout the checkout process.
PayPal also announced today that its subsidiary Braintree will offer Visa Checkout to its merchants. The online payment service allows Visa cardholders to pay on any connected device, and through a software development kit, will be available to Braintree’s US merchants in early 2017.
PayPal may also be in negotiations with company’s that make banking cards to explore further partnerships.
[source]Wall Street Journal[/source]