Visa and PayPal have entered into a strategic partnership that will offer an enhanced and more seamless payment experience for Visa cardholders.
Furthermore, the partnership will provide greater choice in how consumers pay with the PayPal and Venmo wallets.
The deal will offer better customer experience, more spending volume on their credit and debit cards, lower operational costs, and improved security for issuing institutions.
Merchants will also benefit from the improved customer experience, efficiency, and security, which together will help drive increased sales.
PayPal will make it easier for new and existing customers to select to pay with their Visa cards and ensure a more seamless experience, as per the deal.
Additionally, Visa cards will be offered as a clear and equal payment option during enrolment and subsequent payments, with an easy ability for consumers to set as their preferred payment method.
Further, PayPal will join the Visa Digital Enablement Program (VDEP), a commercial framework for Visa partners to access Visa’s token services and other digital capabilities in the US.
This will boost transaction security and expand acceptance for PayPal’s digital wallet to all physical retail locations where Visa contactless transactions are enabled.
The agreement will enable consumers to instantly withdraw and move money from their PayPal and Venmo accounts to their bank account via their Visa debit cards using Visa Direct.
PayPal president and CEO Dan Schulman said: “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 wherever they transact – online, in-app or in-store.”
Visa CEO Charlie Scharf said: “We are excited to begin a new chapter with PayPal. Our agreement provides a framework for our companies to work together collaboratively.”