PayPal revealed in today’s earnings call that it has entered into a strategic partnership with electronic billing service Paymentus.
“…we’re announcing today that we have entered into a strategic partnership with Paymentus, an electronic billing service company that provides e-bill presentment, management and payment capabilities to large scale merchants in the U.S., Canada and Mexico. PayPal will enable payment processing for Paymentus transactions including debit card, credit card and ACH through our Braintree platform, as well as PayPal, Venmo and PayPal credit payment options for existing and new merchants.”
Bill Ready – Executive Vice President, Chief Operating Officer
PayPal plans to leverage the Paymentus platform to enable a consumer bill payment experience within the PayPal app.
In addition to billers on the Paymentus platform being able to present bills to PayPal consumers directly, the feature will also allow other billers and billing platforms to present bills to PayPal consumers enabling payment with PayPal.
This opens up bill payment as a vertical for PayPal and the company believes bill payment has the potential to generate tens of billions of dollars of payment volume for them.
While this category expansion has no direct impact on eCommerce companies, it continues to build the PayPal brand as the trusted brand for many consumer transactions.
It also allows PayPal to decouple further from eBay as the marketplace today only represents about 10 percent of PayPal’s volume.
READ MORE: PayPal Working on Life Without eBay Revenue
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