Skip to content
PayPal and Visa announce digital wallet partnership

PayPal and Visa announce digital wallet partnership

PayPal and Visa announced a strategic partnership in the US that will result in an improved and more seamless payment experience for Visa cardholders and offer greater choice in how consumers pay with the PayPal and Venmo digital wallets.

PayPal and Visa announce digital wallet partnership

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.

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 the agreement

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 enrolment 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 (Automated Clearing House)
  • PayPal will also support and work with issuers to identify consumers who choose to migrate existing ACH payment flows to their Visa cards

PayPal will also join the Visa Digital Enablement Program (VDEP) to expand point-of-sale acceptance, a commercial framework for Visa partners to access Visa’s token services and other digital capabilities in the US.

This will enhance transaction security and expand acceptance for PayPal’s digital wallet to all physical retail locations where Visa contactless transactions are enabled.

Consistent with VDEP, issuers will be able to choose whether to participate and retailers can expect to pay fees that are consistent with other contactless transactions they accept today.

Instant withdrawal of money

Consumers will be able to instantly withdraw and move money from their PayPal and Venmo accounts to their bank account via their Visa debit cards leveraging Visa Direct—providing an experience that offers speed, security and convenience.

Economic incentives

The agreement affords PayPal certain economic incentives, including Visa incentives for increased volume, and greater long-term Visa fee certainty.

“Giving consumers choice in how and where they pay is essential to our goal of being a customer champion and we welcome the opportunity to work with more partners like Visa who share our vision,” said Dan Schulman, president and chief executive officer, PayPal.

“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.”


The post PayPal and Visa announce digital wallet partnership appeared first on Payments Cards & Mobile.

Cart 0

Your cart is currently empty.

Start Shopping