PayPal expands partnership with MasterCard
PayPal on Tuesday announced it's expanding its partnership with MasterCard, positioning the digital payments provider to compete against other point-of-sale payment options.
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The deal, similar to one that PayPal struck with Visa in July, will make MasterCard a payment option within PayPal and allow Braintree merchants to use Masterpass. Additionally, consumers and small businesses will be able to instantly transfer funds from a PayPal account to a MasterCard debit card.
The deal also allows customers to use their MasterCard account via PayPal Wallet to make in-store purchases, meaning MasterCard customers no longer have to link their account to PayPal via ACH. They can also use a tokenized MasterCard within PayPal Wallet for in-store purchases at the more than five million merchants around the globe that now have NFC terminals. The contact-less payment option should help PayPal compete with the likes of Apple Pay and Android Pay -- and even retailers, like Walmart, with their own digital payment offerings.
"With each partnership agreement that we sign, we further expand the ubiquity and value of the PayPal brand and improve our own economics," said President and CEO Dan Schulman in a statement. "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."