Visa and PayPal have teamed up. In an announcement, the companies stated that the collaborative agreement puts them “on a new path” that will see them work together to “accelerate the adoption of safe, reliable and convenient digital payments for consumers and merchants.”
For Visa, the deal will see PayPal raise Visa’s profile in its online payments interfaces, with Visa cards being “presented as a clear and equal payment option during enrollment and subsequent payments,” and PayPal no longer encouraging Visa card users to link their bank accounts.
For PayPal, the agreement brings it into the Visa Digital Enablement Program (VDEP), making PayPal’s digital wallet compatible with all contactless POS terminals where Visa is accepted. PayPal will also be able to access Visa’s token services, and customers will be able to withdraw from their PayPal accounts using Visa Direct debit cards. PayPal will also get “certain economic incentives, including Visa incentives for increased volume,” the companies’ announcement stated.
The deal appears to be part of Visa’s efforts to adapt to, rather than resist, the digital revolution sweeping across the payments industry, with the company also endeavoring to leverage technologies like biometric authentication, which offers a valuable tool for digital payment authorization, and could eventually eliminate the need for payment cards of any kind by linking account information directly to accountholders’ bodies.