PayPal, MasterCard reach deal for store payments

07 Sep, 2016 3:46 pm

SAN FRANCISCO – MasterCard Inc said it had expanded its deal with payment processor PayPal Holdings Inc, which would allow customers to use PayPal’s payment services in stores.

PayPal’s partnership follows a similar deal with MasterCard’s larger rival Visa Inc in July as the company looks to expand its payments network.

PayPal will allow users to select a credit or debit card as the default payment method and share data on transactions made through MasterCard’s tap-and-pay feature, which allows the shopper to wave a card or mobile phone over a reader to pay, the companies said in a statement.

As part of the deal, MasterCard will allow PayPal users to withdraw cash from their accounts using a debit card and also waive the digital wallet fee it currently charges PayPal.

The two companies have an existing partnership for co-branded consumer credit cards in the United States and Puerto Rico.


PayPal, spun off from e-commerce company eBay Inc last year, has focussed on aggressive growth.

The company’s revenue in the second quarter rose more than 15 percent to $2.65 billion (2 billion pounds) from a year earlier and the volume of payments it processes jumped 28 percent to $86.21 billion.

The partnership with MasterCard was first reported by the Wall Street Journal. -Reuters




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