October 12, 2017
Mastercard and PayPal have expanded the wide-ranging agreement they signed last year to include new international markets. The partnership will enable consumers in Canada, Europe, Latin America, the Middle East and Africa to choose Mastercard as a default payment option within the PayPal wallet. In those regions, PayPal will now present Mastercard as “a clear and equal payment option” to users. The agreement also enables merchants in those international regions that use PayPal-owned Braintree to process mobile online payments to accept Mastercard’s digital wallet Masterpass as a payment method.
In return, PayPal hopes to expand its presence in physical stores by leveraging Mastercard tokenization services to make PayPal wallets available for contactless payments at the POS in those markets.
“[This] news is the latest in a line of great partnership developments with Mastercard,” said Gary Marino, chief commercial officer at PayPal. “Together we expect to accelerate digital payment adoption across the world, improve the payment experience online, in-app and in store, and empower millions of consumers to seamlessly manage and move their money.”