MasterCard
Inc said on Tuesday it had expanded its deal with payment processor PayPal
Holdings Inc, which would allow customers to use PayPal's payment services in
stores.
PayPal's
partnership follows a similar deal with MasterCard's larger rival Visa Inc in
July as the company looks to expand its payments network.
PayPal
will allow users to select a credit or debit card as the default payment method
and share data on transactions made through MasterCard's tap-and-pay feature,
which allows the shopper to wave a card or mobile phone over a reader to pay,
the companies said in a statement.
As
part of the deal, MasterCard will allow PayPal users to withdraw cash from
their accounts using a debit card and also waive the digital wallet fee it
currently charges PayPal.
The
two companies have an existing partnership for co-branded consumer credit cards
in the United States and Puerto Rico.
PayPal,
spun off from e-commerce company eBay Inc last year, has focused on aggressive
growth.
The
company's revenue in the second quarter rose more than 15 percent to $2.65
billion
from a year earlier and the volume of payments it processes jumped 28
percent to $86.21 billion.
The
partnership with MasterCard was first reported by the Wall Street Journal.
PayPal
is also in discussions with banks that issue cards, to explore new products and
partnerships, the Journal report said, citing people familiar with the matter.
Shares
of PayPal were slightly higher in premarket trading. Up to Friday's close of
$37.07, the stock had risen 2.4 percent this year.
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