Unlikely partners, PayPal and Visa, announced a US strategic partnership that will result in an improved and more seamless payment experience for Visa cardholders and will offer greater choice in how consumers pay with the PayPal and Venmo wallets.
The partnership puts PayPal and Visa on a new path, with the companies working more collaboratively to accelerate the adoption of digital payments for consumers and merchants.
Further, the arrangement is designed to carry significant benefits for issuing financial institutions, acquirers, and merchants.
For issuing institutions, these include a better customer experience, more spending volume on their credit and debit cards, lower operational costs, and improved security.
Merchants will also benefit from the improved customer experience, efficiency, and security, which together will help drive increased sales.
Details of this agreement include:
- Enhanced Consumer Choice and Improved Experience for Visa Cardholders: PayPal will make it easier for new and existing customers to choose to pay with their Visa cards and ensure a more seamless experience:
- Visa cards will be presented as a clear and equal payment option during enrollment and subsequent payments, with an easy ability for consumers to set as their preferred payment method
- Visa digital card images will be incorporated into payment flows
- PayPal will not encourage Visa cardholders to link to a bank account via ACH
- PayPal will also support and work with issuers to identify consumers who choose to migrate existing ACH payment flows to their Visa cards