PayPal and MasterCard are expanding their partnerships to the checkout by increase PayPal’s footprint at the point of sale through contactless payments.
The deal is similar to that inked between PayPal and Visa earlier this year and highlights the payments provider’s aggressive growth strategy following its split from eBay last year.
The deals will allow PayPal users to set a debit or credit card as a default payment method on PayPal’s digital wallet. PayPal will then share transactional data with MasterCard, which will in return drop the digital wallet fees it currently charges PayPal.
As a part of the agreement MasterCard’s online payments service MasterPass will become an option for consumers while paying merchants using Braintree, a subsidiary of PayPal focused on online payments.
The deal highlights PayPal’s post-independence ambitions to become a more ubiquitous way to pay and the company is reportedly in discussion with card-issuing banks to add new products to its services.
Copyright © 2016 FINTECH GLOBAL
Copyright © 2018 RegTech Analyst
