PayPal and Mastercard Expand Partnership to Benefit Consumers, Merchants and Financial Institutions
September 06 2016 - 7:57AM
Business Wire
Agreement to enhance user experience for
Mastercard cardholders and PayPal users while providing Masterpass
as a payment option for merchants through PayPal’s Braintree
PayPal (NASDAQ:PYPL) and Mastercard (NYSE:MA) today announced an
important expansion of their long-standing partnership that will
enhance the consumer experience by making Mastercard a clear
payment option within PayPal, enable Masterpass as a payment option
for Braintree merchants and expand PayPal’s presence at the point
of sale. This will provide increased value to Mastercard
cardholders, financial institutions and PayPal customers.
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.
“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,
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, 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.”
Delivering Optimal Choice and an Enhanced User Experience for
Cardholders:
To advance the PayPal and Mastercard shared vision to offer
consumers greater choice and flexibility to manage and move their
money:
- Mastercard will be presented as a clear
and equal payment option within the PayPal Wallet, making
Mastercard and their issuers easily identifiable to the consumer
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.
- PayPal will not encourage Mastercard
cardholders to link to a bank account via ACH.
- PayPal will expand its presence at the
point of sale by utilizing tokenization services from Mastercard.
This will allow consumers to use their tokenized Mastercard in
their PayPal Wallet to make in-store purchases at the more than 5
million contactless-enabled merchant locations across the
globe.
Improving Data Quality and Routing for Issuers
Continuing to build on the progress they’ve made in recent
years, PayPal and Mastercard will jointly focus on the
following:
- Continue to enhance data quality to
deliver consistent transaction-level data for Mastercard
issuers.
- Provide greater transparency for
transactions at the point of sale through tokenization.
- Collaboratively work with issuers to
identify consumers who choose to migrate existing ACH payment flows
to their Mastercard cards.
Bringing More Choice for Merchants
Masterpass will be added as a payment option for merchants that
process payments via Braintree, a PayPal company. Merchants that
leverage Braintree as their payment platform will be able to easily
integrate Masterpass into their checkout experiences, providing a
seamless user experience for consumers.
In addition, Mastercard and PayPal have agreed to a multi-year
extension of the PayPal Business Debit Mastercard program in the
United States. This expansion of the partnership between the two
companies comes after the recent announcement that PayPal and
Mastercard agreed to a multi-year extension of the PayPal Extras
Mastercard co-branded consumer credit card program.
About PayPal
At PayPal (Nasdaq: PYPL), we put people at the center of
everything we do. Founded in 1998, we continue to be at the
forefront of the digital payments revolution. PayPal gives people
better ways to manage and move their
money, offering them choice and flexibility in how they
are able to send money, pay or get paid. We operate an
open, secure and technology
agnostic payments platform that
businesses use to securely transact with their
customers online, in stores and increasingly
on mobile devices. In 2015, 28% of the 4.9 billion
payments we processed were made on a mobile device. With
our 188 million active customer accounts, PayPal is
a truly global payments platform that is available to people in
more than 200 markets, allowing customers to get paid in more
than 100 currencies, withdraw funds to their bank accounts in 56
currencies and hold balances in their PayPal accounts in 25
currencies. For more information on PayPal,
visit https://www.paypal.com/about. For PYPL financial
information, visit https://investor.paypal-corp.com.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com, is a technology
company in the global payments industry. We operate the world’s
fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. Mastercard products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on Twitter
@MastercardNews, join the discussion on the Beyond the Transaction
Blog and subscribe for the latest news on the Engagement
Bureau.
About Masterpass
The Masterpass vision is to support all forms of commerce in
order to address the widest range of merchant experiences and
consumer needs. Masterpass stores all payment information,
including card details from both Mastercard and other payment
networks, shipping information, and payment preferences in one
convenient, secure place. With Masterpass, you can check out online
or in merchant apps by simply clicking the Masterpass button and
authenticating to complete the transaction. In-store, simply tap to
pay at contactless-enabled merchants and get on your way.
Masterpass also leverages the most advanced methods of payment
security available today, including network tokenization, which
ensures information is protected. For a list of Masterpass online
and in-app accepting merchants visit www.masterpass.com.
In-store enabled merchants can be found here.
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version on businesswire.com: http://www.businesswire.com/news/home/20160906005763/en/
Communications:MastercardJim
Issokson,
914-249-6286james.issokson@mastercard.comorPayPalChris Mors,
914-413-3045cmorse@paypal.com
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