PayPal has struck another deal with a payment network MasterCard Inc, following a big deal with Visa Inc earlier this year, the wall street journal reported.
The two deals in quick succession are among the major moves post-independence strategy after splitting off from the eBay Inc. last year.
The aim is to end unpleasant fights with the big card issuers and make PayPal a universal method of payment. This would include in stores payments at the checkout counter, Visa and MasterCard’s mobile-tap tools, the biggest new frontier for payments companies.
This deal between PayPal and MasterCard has enabled users to set the credit or debit card as a default payment method. The data on every transaction that uses the MasterCard mobile tap will be shared with PayPal.
In an offer to expand an acceptance of Mastercard, it will become a payment option for all merchants, which will make it easier for the developers to add Mastercard as a payment option online and in-app. In return, MasterCard will cut the digital wallet fee it charges PayPal. It will also provide PayPal volume discounts, as Visa did.
“Customer choice and partnership are fundamental principles for PayPal that guide how we operate as a company, giving our customers greater opportunities to more easily manage and move their money online, in-app and in-store,” said Dan Schulman, president, and CEO, PayPal.
PayPal had made a similar deal with Visa Inc. in earlier this year to make it easier for its customers to use Visa credit and debit cards in stores.
MasterCard and PayPal were not immediately ready for the comment. But it’s fair to say that this deal will end bitter fights between card issuers.
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