Payments platform PayPal and financial firm Visa have announced a strategic partnership that will see the two companies aim to consolidate their mobile payments offering, enhancing their security and growing the audience.
According to Visa, the partnership will result in an improved and more seamless payment experience for Visa cardholders and will offer greater choice in how consumers pay with the PayPal and Venmo mobile wallets.
The partnership will see the two companies working more collaboratively in an effort to accelerate the adoption of digital payments by both consumers and merchants, and continue to improve safety, reliability and convenience in their offerings.
In addition, the arrangement is designed to carry significant benefits for issuing financial institutions, acquirers and merchants, including better customer experience, lower operations costs and more spending volume on credit and debit cards.
"Giving consumers choice in how and where they pay is essential to our goal of being a customer champion and we welcome the opportunity to work with more partners like Visa who share our vision," said Dan Schulman, president and CEO of PayPal. "This agreement opens new avenues for PayPal to collaborate with Visa, financial institutions and others in the payments ecosystem to deliver greater value, more choice and new experiences for our joint customers."
As a result of the partnership, PayPal will make it easier for new and existing customers to choose to pay with their Visa cards, presenting them as a clear and equal payment option during enrollment and subsequent payments. Visa's digital cards will be incorporated into payment flows, and PayPal will not encourage Visa cardholders to link to a bank account, ensuring the Visa remains in the transaction chain.
PayPal will also join Visa's Digital Enablement Program to expand point of sale acceptance, enable consumers to instantly withdraw and move money from PayPal and Venmo accounts via Visa debit cards, and enhance data quality for merchants.
"We are excited to begin a new chapter with PayPal," said Charlie Scharf, CEO of Visa. "Our agreement provides a framework for our companies to work together collaboratively. PayPal has built industry-leading capabilities which complement those of Visa and our clients, and working together, we will be bale to deliver better solutions for consumers and merchants."
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