MasterCard made payment option within PayPal in expanded partnership

This new stage of partnership will also enable Masterpass as a payment option for Braintree merchants and expand PayPal’s presence at the point of sale. Consumers and small businesses will be able to 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.

MasterCard will be presented as a clear and equal payment option within the PayPal Wallet, making MasterCard and their issuers 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 measures that they have come to expect when using a MasterCard.

Customers will be able to select MasterCard as their default payment method. 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 utilising tokenisation services from MasterCard. This will allow consumers to use their tokenised MasterCard in their PayPal Wallet to make in-store purchases at the more than 5 million contactless-enabled merchant locations across the globe.

PayPal and MasterCard will jointly focus on enhancing data quality to deliver consistent transaction-level data for MasterCard issuers, on providing transparency for transactions at the point of sale through tokenisation, and on working with issuers to identify consumers who choose to migrate existing ACH payment flows to their Mastercard cards.

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 integrate Masterpass into their checkout experiences.

In addition, MasterCard and PayPal have agreed to a multi-year extension of the PayPal Business Debit MasterCard program in the US. 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.