PayPal confirmed it is adding MasterCard’d Masterpass and Visa’s Visa Checkout as a payment option for Braintree merchants. Braintree powers payments for companies like Airbnb, Eventbrite, Pinterest and Uber, enabling merchants to accept a variety of payment options online, in app and in-stores.
Under the expanded partnership with MasterCard, 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.
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.
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.
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.
Visa Checkout is already part of the shopping experience at many leading online retailers including Starbucks, Walgreens and Best Buy.
Visa Checkout will be available to US merchants through Braintree’s SDK in early 2017. Braintree’s SDK is a seamless integration that provides a simple way for merchants to accept payments and enable buying experiences.
Visa Checkout now has more than 14 million consumer accounts. Hundreds of thousands of merchants and more than 900 financial institution partners now offer Visa Checkout in 16 countries around the world; expansion into five additional European countries and India will take place by the end of 2016.
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