Visa (NYSE:V) and PayPal (Nasdaq: PYPL) today announced an extension of their strategic partnership to Europe.
The two companies are already collaborating in the U.S. and Asia Pacific to accelerate the adoption of secure and convenient online, in-app and in store payments. This latest step brings the benefits of the partnership to European consumers and businesses.
Additionally, PayPal – under its banking license in Europe – is joining the Visa network of client financial institutions and will be able to offer Visa accounts in Europe, enabling consumers and businesses to use their PayPal funds as payments wherever Visa is accepted worldwide.
“Visa and PayPal have a shared goal of giving consumers a safe, convenient way to pay using their preferred device. Expanding our partnership into Europe provides greater consumer choice and benefits merchants,” said Bill Sheedy, CEO, Europe Region, Visa Inc. “By having the option to issue Visa accounts in Europe, PayPal will now have the ability to offer customers new and innovative ways to manage and move their money regardless of platform or device.”
“The agreement announced today will deepen PayPal’s collaboration with Visa and its partners across our European markets”, said Rupert Keeley, Executive Vice President and CEO, PayPal (Europe) S.à r.l. & Cie, S.C.A. “Our partnership will enable us to offer more choice to millions of consumers and businesses through an expanded range of innovative products. Whether it’s online, in-app or in-store, Paypal will offer simple, secure and convenient ways to pay and get paid.”
The European partnership agreement makes it easier for financial institutions to offer their Visa account holders the ability to checkout anywhere PayPal is accepted online by offering greater consumer choice for payments. It will also expand the acceptance of PayPal by European businesses that accept Visa in physical locations, providing growth opportunities for Visa, PayPal and their customers based on the following:
- Customer Choice: PayPal and Visa will create a seamless experience for consumers who choose to pay with their Visa card at places that accept PayPal. Through collaboration with Visa bank partners, consumers will be able to add Visa cards into the PayPal wallet easily from other banking apps.
- PayPal in Europe: PayPal – under its banking license in Europe – will have the ability to issue Visa accounts to European consumers and businesses. In the future, this would make it possible for Paypal customers to use their PayPal funds wherever Visa is accepted worldwide.
- Digital collaboration: Visa and PayPal have agreed to extend participation in the Visa Digital Enablement Program (VDEP) in Europe. VDEP provides Visa’s partners with access to tokenisation technology, which enables simple and secure payment on mobile phones or any connected device. This will help expand the use of PayPal to businesses that accept Visa in physical locations.
- Easier and faster access to funds: Visa will provide the opportunity for PayPal to leverage Visa Direct in Europe, which will allow PayPal customers to move funds to their Visa accounts in real time across multiple markets.