Mastercard and PayPal have announced an extension of their partnership into Asia Pacific to enhance the consumer experience and make Mastercard a clear payment option within PayPal.
The deal will expand PayPal’s presence at the point of sals and enable Masterpass for Braintree merchants in the region. Both companies will collaborate to create opportunities to leverage Mastercard’s new payment flow technologies, providing increased value to Mastercard cardholders, financial institutions, and PayPal customers.
PayPal will also have the opportunity to give consumers and small businesses across Asia Pacific the ability to cash out funds held in their PayPal accounts to a Mastercard debit card.
PayPal also gets the opportunity to expand its presence at the point of sale by utilizing tokenization services from Mastercard. This will allow consumers to use their tokenized Mastercard in their PayPal Wallet to make in-store purchases at the more than 6.5 million contactless-enabled merchant locations across the globe. In addition, customers will have the ability move funds to their bank accounts via their Mastercard debit cards in real time across multiple markets.
This is a key territory for PayPal as frankly Asia Pacific dwarfs Europe in population and potential. With local payments services such as Alipay dominating the region PayPal have to step up a gear to compete as they’re still a relatively new brand in Asia regardless of their domination in the West.