Last year PayPal and Bank of America (BofA) agreed to collaborate on in-store payments and account linking. In January, the first significant integration by the two financial entities involved digital disbursements via PayPal.
Now the two companies are expanding the consumer experience.
Bank of America announced its customers can now seamlessly add multiple credit and debit cards to their PayPal account directly from the bank’s mobile banking app.
This new feature makes it even easier for Bank of America customers to shop how, where and when they choose.
“It’s all about providing our customers the most convenient and secure payments experience possible. As the face of money continues to become more digital, Bank of America remains committed to giving our customers the ability to use any major wallet or payment method they choose, including PayPal.”
Mark Monaco, head of Enterprise Payments at Bank of America
Bank of America says its customers continue to adopt digital payments at record rates.
While the percentage of mobile wallet transactions in the U.S. still lags way behind more traditional payment methods, the bank said that transactions doubled over the past year, according to transaction and spending data from over 50 million active Bank of America credit and debit cards.
PayPal may be pushing into international markets where they can effectively skip over cash transactions to digital payments, but the company still needs to build up a network in the U.S. by including banks.
Previously, PayPal was a direct competitor to banks and credit cards networks such as Visa and Mastercard. By working with financial institutions, PayPal can expand its network of safe and secure contactless payments at physical retail locations.
Part of the collaboration means that PayPal will discourage the use of ACH bank transfers to fund its digital wallet and instead promote credit and debit card funding. This benefits banks as they receive transaction fees from every debit and credit card transaction.
This may explain why PayPal made fee adjustments that will go into effect on April 19.
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