When the Venmo mobile payment app (which is owned by PayPal) started introducing support for third party apps last year, many saw the move as a ploy to get more money by way of additional business transactions, including those coming from Delivery.com, Parking Panda, and even Poshmark.
It goes without saying that Venmo is hardly the only service of its kind -- rival Zelle happens to have the backing of over 30 major banking institutions with operations in the United States, and on top of that, Zelle can transfer funds easily between the bank’s own mobile apps without ever needing to make use of a middleman such as PayPal or even Facebook’s Messenger platform.
But with recent news that a couple of major banks, namely Chase and Citibank (both of whom also have existing ties with Zelle), have struck a partnership with PayPal, the competition could get interesting. So what exactly does PayPal joining forces with Chase and Citibank bring to users? Well, for starters, people now are given the ability to add Chase and Citibank issued cards to their PayPal account, and then get to accumulate reward points from each banking institution whenever they use them through PayPal.
The result is that Chase Pay now becomes an additional way for users to fill their PayPal Wallet, while also enjoying the ability to take full advantage of Chase’s mobile payment system service in order to facilitate payment transactions to Braintree merchants, such as OpenTable, Uber, and TaskRabbit. Moreover, holders of Chase issued cards will also soon be getting an upcoming near field communications (NFC) driven feature that uses tokens in merchant outlets.
As explained by Dan Schulman, the president and chief executive officer of PayPal, the overall aim of the collaboration with Chase and other banking institutions is to provide more options, flexibility, and value for joint customers, while at the same time, allow PayPal to improve its reach in stores. Along the way, the partnership will also let cards that are issued by Chase to be easily added to current or even newly set up PayPal accounts. Lastly, customers can make use of their Chase Ultimate Rewards Points when dealing with any merchant that accepts PayPal, whether online or in-app.
Just a few days ago, Samsung had revealed that users of its mobile payment system, Samsung Pay, will now be able to make use of PayPal in completing payment transactions in-app, online, and in-store.
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