PayPal and Bank of America announced an expanded partnership on Thursday enabling BofA’s consumers to use PayPal’s payment services in-store, online and in-app, as well as seamlessly link their bank cards into PayPal.
As part of the agreement, BofA will gain access to PayPal ‘s tokenization services, which will allow bank customers to pay with their PayPal accounts to make in-store purchases at contactless-enabled merchants across MasterCard and Visa portfolios in the US.
In addition, BofA cardholders will be able to use their PayPal accounts in-store through the PayPal mobile wallet, which supports PayPal’s forthcoming NFC mobile wallet experience and reflects Bank of America’s open wallet strategy.
The deal also will make it easy for PayPal customers to link their BofA cards to their PayPal accounts.
Mark Monaco, Head of Enterprise Payments at Bank of America, commented: “We’re always looking at ways we can deliver secure, convenient and fast payment solutions to meet our customers’ needs,” said. “Whether it is in-store, in-app or online, this partnership provides yet another option for the empowerment of customers.”
Gary Marino, Chief Commercial Officer at PayPal, added: “At PayPal, we continue to partner with the most innovative and respected companies in technology, mobile and financial services. This partnership will give us the opportunity to work with Bank of America to reach and serve new customers, improve security capabilities, enhance our mobile leadership and offer our millions of joint customers more choice when paying online, in apps and in stores.”
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Paypal Announces Strong Quarterly Results
Paypal also announced strong quarterly results for the second quarter ending June 30, 2017. The results show 18% growth in quarterly revenues, to $3.136 billion. The GAAP operating margin was 13.7% and non-GAAP operating margin was 21%.
More than the revenue numbers, the figures concerning the number of Paypal accounts are even more impressive. The reports say that 6.5 million active customer accounts were added, and they had a total of 1.8 billion payment transactions, up 23%.
The total payment volume was $106 billion which is a rise of 23%.These numbers are especially strong considering the strong competition in the payment services industry in recent times.
Paypal has tried to stay abreast of the competition by strategic partnerships with major companies over the last quarter. This included a partnership with Baidu to allow Chinese customers to pay with the Baidu wallet and Paypal as well.
Also, like the deal with BofA above, Paypal has concluded an agreement with JPMorganChase, Samsung Pay, Google and Apple to encourage the use of Paypal wallets.
Paypal has also completed the acquisition of TIO networks during this quarter which will help it expand its network and scale of operations.
Paypal hopes that these acquisitions and partnerships will help it to stave off competition in an industry that is likely to continue to boom, for the next few years at least.