PayPal expands its partnership with Mastercard

Posted at 12:06 PM, Sep 06, 2016
and last updated 2016-09-06 12:06:40-04

NEW YORK (AP) -- PayPal and Mastercard signed a deal Tuesday that aims to make it easier for PayPal users to pay with a Mastercard.

The announcement comes after PayPal Holdings Inc. signed a similar deal with credit card issuer Visa Inc. in July.

Mastercard will be more prominently featured on PayPal's app and website and its other payment service, Venmo. It will also allow PayPal users to select a Mastercard as a default payment option.

Under the new deal, PayPal and Venmo users will also be able to transfer money to their Mastercard debit cards instantly. Previously, it would take a couple of days for the funds to be available in bank accounts.

The changes are expected to be made in the first half of 2017.