Just over a month after PayPal signed a partnership with Visa, the online money-transfer company has inked a deal with Mastercard.
The terms of today’s agreement with Mastercard are similar to those PayPal laid out with Visa:
- Mastercard will be clearly presented as a payment option within the PayPal app
- Users will be able to set Mastercard as their preferred payment method
- Mastercard will help PayPal boost its presence at the point-of-sale (POS)
- Mastercard’s Masterpass will be available as a payment option for merchants using Braintree
- Venmo users can withdraw their Venmo balance using Mastercard Send
Also similar to the Visa deal, PayPal will receive volume incentives and will not be charged a digital wallet-operator fee for using Masterpass.
PayPal spun off from parent company eBay last year and has since been focused on growing its presence at the brick-and-mortar POS to help it compete with the growing number of mobile-wallet apps. The company’s recent partnerships with Visa and Mastercard are expected to spur growth in this area.
PayPal debuted Instant Account Creation at FinovateEurope 2012. Justin Woo, the company’s Braintree developer evangelist, presented at FinDEVr New York 2016. Visa has also presented at FinDEVr: M. Tad Tilahun, VP of product development, and M. Tad Tilahun and Alan Johnson, senior director/digital developed markets, presented at FinDEVr San Francisco 2014. Visa previously appeared at FinovateSpring 2010, where it demoed a tool to help consumers collect and organize products. At FinovateFall 2014, Mastercard took the stage to launch Mastercard Pay with Rewards, a solution that allows cardholders to redeem points at the point-of-sale. The company showed off its Developer Zone at FinDEVr San Francisco 2014.