PayPal announced an partnership with Visa in the US a year ago and also in Asia. Today comes the news that the partnership is to be extended to Europe.
Two main things will be of interest: The agreement enhances the online, in-app and in store payment experience for consumers in Europe; and enables PayPal in Europe to issue Visa accounts.
Use PayPal as a Digital Wallet for your Visa Card
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. This means that you’ll be able to pay with the PayPal app but without using PayPal as the direct funding source, effectively turning PayPal into a true digital wallet.
Digital Colaboration
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.
Pay with PayPal funds and Visa
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 to spend wherever Visa is accepted worldwide.
We’re not quite sure what the Visa account will look like, but currently PayPal offer a PayPal Access card run through Mastercard in order to spend funds either contactlessly or with Chip & PIN. It looks as if in the future cards could be offered more widely under the Visa banner. Originally the Access Card was only available to businesses but from 2013 it became available to all PayPal users.
The really good news is that 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.
