Agreement to enhance user experience for Mastercard cardholders and
PayPal users while providing Masterpass as a payment option for
merchants through PayPal's Braintree
SAN JOSE, Calif. & PURCHASE, NY--(BUSINESS WIRE)--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160906005763/en/
Communications:
Mastercard
Jim
Issokson, 914-249-6286
james.issokson@mastercard.com
or
PayPal
Chris
Mors, 914-413-3045
cmorse@paypal.com
Source: MasterCard Incorporated
News Provided by Acquire Media