An agreement with Mastercard will enable PayPal users to make contactless transactions in stores where the credit card is accepted, echoing a similar deal in July with Visa.
Making itself available to its users in offline locations as well as online has proved a challenge for PayPal. The agreements with the credit card giants address that weakness.
As a result of this latest accord, PayPal users will also be able to withdraw cash from their accounts using a Mastercard debit card. And the online payment firm will no longer be subject to a digital wallet operator fee.
In return, PayPal users will be able to select a Mastercard debit or credit card as the default method for topping up their accounts. And the online payment firm agreed not to encourage MasterCard cardholders to top up their PayPal accounts direct from their bank accounts, a source of complaint from credit card firms.
And PayPal also agreed to share data about users’ transactions made via Mastercard-enabled terminals.
Finally, Braintree, an in-app payments firm owned by PayPal with clients include Airbnb and Uber, agreed to add Masterpass as a payment option for its merchants.
Masterpass enables Mastercard customers to check out online or on their mobile device without having to enter credit card details every time they shop. Integration of Masterpass in the Braintree SDK will happen in early 2017.
Simultaneously, arch rival Visa announced a similar deal whereby Braintree will also “soon” offer its merchants the option of Visa Checkout, a Masterpass rival.