Leading payment system, PayPal has announced a partnership deal with MasterCard that would enhance customer payment experience in stores by making Mastercard a clear payment option within PayPal, enable Masterpass as a payment option for Braintree (a PayPal company) merchants and expand PayPal’s presence at the point of sale (PoS). This partnership will in turn
Leading payment system, PayPal has announced a partnership deal with MasterCard that would enhance customer payment experience in stores by making Mastercard a clear payment option within PayPal, enable Masterpass as a payment option for Braintree (a PayPal company) merchants and expand PayPal’s presence at the point of sale (PoS). This partnership will in turn provide increased value to Mastercard cardholders, financial institutions and PayPal customers.
Considering the problems encountered by entrepreneurs with payment systems, this partnership is a welcome development. Under the expanded partnership, consumers and small businesses will be able to instantly cash out funds held in their PayPal accounts to a Mastercard debit card. PayPal will also be provided certain financial volume incentives and, as a result of the commitments made under this agreement, will no longer be subject to the digital wallet operator fee.
Speaking on the new partnership, Dan Schulman, President and CEO, PayPal said “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. 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.”
Also the CEO and President of MasterCard, Ajay Banga said “Whether paying in the physical or digital world, consumers want to see the familiar MasterCard brand from their chosen issuer. 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.”
Some of the other advantages of this partnership include:
- Masterpass will be added as a payment option for merchants that process payments via Braintree – a PayPal company. Hence, providing a seamless user experience for customers.
- PayPal will expand its presence at the point of sale by utilizing tokenization services from Mastercard.
- Mastercard will be presented as a clear and equal payment option within the PayPal wallet, making Mastercard and their issuers easily identifiable to the customer when transacting.
- Customers will see a familiar digital representation of their Mastercard from their chosen issuer, ensuring them that all payments made through PayPal are protected with the same safety and security measures that they have come to expect when using a Mastercard.
- Customers will be able to select Mastercard as their default payment method to allow for quick and easy check-out.