PayPal to Team Up With Banks on Payment Network

New York: As part of its business expansion plan, PayPal Holdings Inc is in discussions with banks that issue cards. PayPal is planning to explore new products and partnerships with banks globally. In a latest agreement, PayPal further strengthened the business tie up with MasterCard Inc, which has expanded its deal with payment processor.

As part of it, Master Card will allow customers to use PayPal’s payment services in stores. The latest deal follows a similar deal with MasterCard’s larger rival Visa Inc in July as the company looks to expand its payments network.

According to a report by Reuters, PayPal will allow users to have an option of choosing a credit or debit card as the default payment method and share data on transactions made through MasterCard’s tap-and-pay feature. This feature allows the shopper to wave a card or mobile phone over a reader to pay, according to a statement.

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. PayPal and MasterCard 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 in 2015, is focusing on growth and expansion. The company’s revenue in the second quarter rose more than 15 percent to $2.65 billion from a year earlier and the volume of payments it processes jumped 28 percent to $86.21 billion. Wall Street Journal (WSJ) is the first to report about the PayPal’s partnership with MasterCard.