PayPal and Visa agree on issuing debit cards in Europe

PayPal has reached an agreement with Visa enabling it to issue debit cards in Europe. The online payment company thereby announces its entrance to the field of traditional banking.

The two companies signed an agreement on cooperation in providing payment operation services throughout Europe. This means that PayPal, which already has a banking license in Europe, will be able to offer Visa debit cards with its brand on them.

The agreement with Visa will enable the users of PayPal to gain access to Visa's contactless payment spots in stores in Europe and they will also be able to pay through phones using their PayPal account.

This move, as expected, will especially attract small companies which have money on their PayPal accounts intended for the purchase of supplies, as well as people without a banking account who use PayPal, Financial Times writes.

The agreement with Visa provides PayPal with a wider pool of clients. According to Jim Magats, Financial Services Director at PayPal, the company planned to initiate debit cards, although that was not their primary goal.

PayPal has several important client more willing to use PayPal than a banking account for their daily spending, and there are also users who carry out all their online transactions through PayPal, which they intend to continue doing through their debit cards, Magats explains.

PayPal

Visa

debit cards

card payment

Jim Magats

contactless payment