PayPal’s appeal to banks pays off with HSBC deal
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PayPal’s appeal to banks pays off with HSBC deal

PayPal’s strategy of making deals with banks seems to be paying off, as major player HSBC adds the online payment provider to its global disbursement service for corporate customers. HSBC already offers its customers the opportunity to reach people in 136 currencies globally, and lets payments be tracked online. But the addition of PayPal will open up new doors for people whose suppliers prefer to use the popular online service.

PayPal’s share price has risen by 80% over the past 12 months

graph 0605 paypal 

SOURCE: Yahoo Finance

Tom Halpin, HSBC’s global head of payments in global liquidity and cash management, said: “Our collaboration with PayPal will significantly expand the payments network accessible to our clients through HSBC, allowing them to send payments to a much wider range of counterparties in a fast and efficient manner."

PayPal has been trying to build ties with banking giants for the past year, and its managed to sign agreements with a range of names including Bank of America, Citi, and JPMorgan Chase. HSBC’s name is a worthy addition to that roster.

Jim Magats, vice president and head of payments, product & engineering at PayPal, said: "Our agreement with HSBC demonstrates how PayPal’s strategy of partnership with global banking institutions is delivering significant benefits for businesses and consumers around the world. PayPal and HSBC share a common vision of making payments simpler, secure and more convenient for merchants and consumers who want to manage and move their money digitally around the globe."

Disclosure

Dominion holds PayPal in its Global Trends Ecommerce Fund.


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