Paypal: agreement with Mastercard for store payments

PayPal continues to consolidate its presence in stores and in the business of "traditional" type, through a new agreement with Mastercard, taking a little distance from the web, where it was born as a complementary service to eBay, which was spun off in 2015.

After the agreement with Visa, announced in July, the company struck the deal with Mastercard to strengthen its presence directly at the stores and become a universally accepted method of payment.

PayPal, therefore, will allow its users to use the services of Mastercard as default payment method. In return, PayPal users can use the MasterCard cards linked to their accounts without having to pay high commissions so far provided. In addition, as part of the deal, PayPal will not encourage more its users connect their PayPal account directly to their bank accounts.

PayPal is also in discussions with banks that issue cards, to explore new products and partnerships, the Wall Street Journal report said, citing people familiar with the matter.

“Customer choice and partnership are fundamental principles for PayPal,” Chief Executive Dan Schulman said. “With each partnership agreement that we sign, we further expand the ubiquity and value of the PayPal brand and improve our own economics.”

The changes are expected to be made in the first half of 2017.