MasterCard and PayPal team up on online wallets

PayPal and MasterCard have signed a deal that will make MasterCard a payment option within PayPal. The partnership will also see PayPal being used more at POS terminals.

This means that consumers and small businesses will be able to instantly cash out funds held in their PayPal accounts to a MasterCard debit card.

Masterpass will be added as a payment option for merchants that process payments via Braintree, a PayPal company.

PayPal CEO Dan Schulman said the deal would give its users more choice. “With each partnership agreement that we sign, we further expand the ubiquity and value of the PayPal brand and improve our own economics,” he said in a statement.

In addition, MasterCard and PayPal have agreed to a multi-year extension of the PayPal Business Debit MasterCard program in the US.