On a roll, PayPal announces expanded relationships with Citi, Chase
PayPal is stepping on its own press releases this week. On the heels of yesterday’s press release saying that PayPal is joining the Visa network of client financial institutions in Europe, the company has announced expanded relationships with two top-tier U.S. banks, Chase and Citi.
The move will bring new options to existing and potential PayPal users, the company said in a press release.
The expanded relationship with Chase will “enable PayPal to further expand its reach in-store, enable Chase-issued cards to be easily added to newly created or existing PayPal accounts, and will allow joint customers to use their Chase Ultimate Rewards Points anywhere PayPal is accepted online and in-app,” PayPal CEO and President Dan Schulman wrote in a blog post.
Chase Pay will also become an option to transfer funds to the PayPal Wallet. Braintree, the processing arm of PayPal, will add Chase Pay as a payment method for its merchants.
PayPal’s relationship with Citi will soon enable the FI’s customers holding ThankYou Rewards cards to redeem their points at merchants that accept PayPal online and in app, according to the blog post. The companies expect this capability to go live in 2018 for U.S. cardholders. PayPal and Citi said they will explore extending this capability to cardholders outside the U.S., as well.
“In 2016, it was estimated that consumers earned nearly $23 billion in rewards related spending power from the six largest U.S. card issuers,” Jim Magats, vice president and head of payments for product and engineering at PayPal, wrote in a separate blog post. “We want to extend the ubiquity of the PayPal platform and support all relevant types of payments that our customers use, which includes [not only] credit and debit, but also rewards points.”