PayPal and Visa Enter Partnership to Extend Consumer Payment Choice

Companies Collaborate to Accelerate the Adoption of Digital Payments

SAN JOSE, Calif. & SAN FRANCISCO–(BUSINESS WIRE)–PayPal (NASDAQ:PYPL) and Visa (NYSE:V) today announced a U.S. strategic
partnership that will result in an improved and more seamless payment
experience for Visa cardholders and will offer greater choice in how
consumers pay with the PayPal and Venmo wallets.

The partnership puts PayPal and Visa on a new path, with the companies
working more collaboratively to accelerate the adoption of safe,
reliable and convenient digital payments for consumers and merchants.
Further, 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 this agreement include:

  • Enhanced Consumer Choice and Improved Experience for Visa
    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 enrollment 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
    • 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 Join the Visa
    Digital Enablement Program
    (VDEP) to Expand Point of Sale
    PayPal will join VDEP, a commercial framework for Visa
    partners to access Visa’s token services and other digital
    capabilities in the United States. 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
    – providing an experience that offers speed, security and
  • Enhanced Data Quality: PayPal will ensure that data provided to
    issuers and their cardholders for Visa-funded transactions will be
    consistent with the information that is received with traditional Visa
    card transactions. This will ensure a better consumer experience,
    reduce cardholder confusion, ensure proper application of rewards, and
    reduce costly and time-consuming disputes.
  • 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.”

“We are excited to begin a new chapter with PayPal. Our agreement
provides a framework for our companies to work together
collaboratively,” said Charlie Scharf, chief executive officer,
Visa. “PayPal has built industry leading capabilities which complement
those of Visa and our clients, and working together, we will be able to
deliver better solutions for consumers and merchants. At Visa, we are
focused on growth by providing our issuer and acquirer clients – and
their clients, merchants and consumers – with the best way to pay and be
paid everywhere and this agreement supports this approach.”

About PayPal

At PayPal (Nasdaq: PYPL), we put people at the center of everything we
do. Founded in 1998, we continue to be at the forefront of the digital
payments revolution. PayPal gives people better ways to manage and move
their money, offering them choice and flexibility in how they are able
to send money, pay or get paid. We operate an open, secure and
technology agnostic payments platform that businesses use to securely
transact with their customers online, in stores and increasingly on
mobile devices. In 2015, 28% of the 4.9 billion payments we processed
were made on a mobile device. PayPal is a truly global payments platform
that is available to people in more than 200 markets, allowing customers
to get paid in more than 100 currencies, withdraw funds to their bank
accounts in 56 currencies and hold balances in their PayPal accounts in
25 currencies. For more information on PayPal, visit
For PYPL financial information, visit

About Visa Inc.

Visa Inc. (NYSE:V) is a global payments technology company that connects
consumers, businesses, financial institutions, and governments in more
than 200 countries and territories to fast, secure and reliable
electronic payments. We operate one of the world’s most advanced
processing networks — VisaNet — that is capable of handling more than
65,000 transaction messages a second, with fraud protection for
consumers and assured payment for merchants. Visa is not a bank and does
not issue cards, extend credit or set rates and fees for consumers.
Visa’s innovations, however, enable its financial institution customers
to offer consumers more choices: pay now with debit, pay ahead of time
with prepaid or pay later with credit products. For more information,
and @VisaNews.


Visa Inc.
Connie Kim, 347-224-1720
Morse, 914-413-3045