PayPal and Mastercard Expand Partnership to Benefit Consumers, Merchants and Financial Institutions

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.]]>