July 25, 2017
Shortly after PayPal announced expanded partnerships with Apple and Samsung that enabled its users to make purchases at the App Store and as a funding source for Samsung Pay, the online payment pioneer announced deals with JP Morgan Chase and Citi. The agreements will make it easier for PayPal users to add Chase- and Citi-issued cards to their PayPal wallets. Additionally, Chase Pay will be added as a payment option for merchants that process payments via Braintree and PayPal will enable Chase as an acquirer for PayPal volume, including the ability to process Chase card transactions via ChaseNet, the company said in a blog post.
The Citi deal enables its rewards card users to pay for online purchases by redeeming rewards points.
“Consumers are increasingly turning to their rewards points to pay for things,” said Jim Magats, vice president and head of payments, product and engineering for PayPal. “In 2016, it was estimated that consumers earned nearly $23 billion in rewards-related spending power from the six largest U.S. card issuers. We want to extend the ubiquity of the PayPal platform and support all relevant types of payments that our customers use, which includes credit and debit but also rewards points.”
Since turning over leadership of the company to Dan Schulman in 2014, PayPal has been on a partnership spree. In addition to the recent deals with Apple, Samsung, Chase and Citi, the company has struck agreements with all the major card networks, Google, Facebook and others in an effort to expand access to the PayPal wallet.