Payment providers stick together for global expansion
MasterCard and PayPal, two payment providers at the center of the cashless revolution, have extended their longstanding partnership into Europe, Canada, Latin America and Caribbean, and the Middle East and Africa. The companies believe that working together will result in a better consumer experience that offers more flexibility. Ultimately, they are also hoping it will provide more business to both companies, as MasterCard becomes a “clear payment option” within PayPal’s wallet across the globe.
PayPal and MasterCard have both seen their share prices soar this year
SOURCE: Yahoo Finance
MasterCard and PayPal were already working together in the U.S. and Asia Pacific, but this new expansion has turned the partnership global. The companies see it as a “joint growth opportunity” predicated on the fact that, working in partnership, they can offer a better service to their clients.
Despite the fact that both companies are payment providers, they are not in direct competition: PayPal payments have to come from somewhere – why not MasterCard? Likewise, MasterCard consumers will always use an online payment service – why not PayPal? By joining forces, the companies could create a larger, more flexible, service that comes closer to providing the kind of end-to-end convenience that Ecommerce is famous for facilitating.
PayPal customers will now be presented with a clear option to make MasterCard their default payment option within the PayPal Wallet. Increased synergy between the two companies could result in significant additional online traffic for the credit card giant. Meanwhile PayPal will benefit from MasterCard’s popularity at brick-and-mortar point of sale locations, as consumers are able to use “tokenization services” from MasterCard that let them pay with PayPal at checkouts in over 6.5 million locations around the globe.
Gary Marino, chief commercial officer at PayPal, said: “Today’s news is the latest in a line of great partnership developments with Mastercard. 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.”
Ann Cairns, president international, MasterCard, added: “People everywhere know and trust the familiar Mastercard brand, whether they’re paying in the physical or digital world. Our expanded partnership with PayPal affirms our commitment to our billions of cardholders across the globe to deliver the simple, speedy and secure payment experience they’ve come to expect from Mastercard, across devices and channels.”
Dominion holds PayPal and MasterCard in its Global Trends Ecommerce Fund.
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