Mastercard and PayPal Simplify Checkout with Tailored Payment Preferences

Mastercard and Paypal are joining forces to help cardholders tailor their payment preferences through a single digital credential — providing them with more payment choices at checkout.

Two of the biggest names in the payment industry now stand to leverage Mastercard’s One Credential program to create a seismic shift in how cardholders pay for purchases.

Mastercard launched One Credential earlier this year and announced a group of companies it is working with to bring its solution to cardholders around the world. By bringing PayPal into the fold, Mastercard plans to co-develop features in One Credential with its new partner and reach more consumers.

“We’re excited to empower consumers with more choice and control over how they pay together with PayPal, building on our collective strength of global payments innovation,” Bunita Sawhney, Chief Consumer Product Officer with Mastercard, said in a press release announcing the union.

The days when consumers rifle through their purse or wallet to find the card they want to use for a particular transaction may soon be coming to an end. One Credential allows consumers to access multiple payment methods from one app, giving them the power to make payments via the solution that best suits their personal finances.

In addition to credit and debit cards, consumers can make payments in installments and with prepaid cards through One Credential.

PayPal, fresh off the heels of announcing a new physical credit card, is looking forward to working with Mastercard to bring innovative payment solutions to consumers.

“We both want to reduce friction for consumers and bring them more power over how they pay,” Chris Sweetland, SVP of Partnerships at PayPal, said in the release. 

Tools such as One Credential are crucial solutions for credit card issuers to attract and retain new customers.

A new study from NMI, a global leader in embedded payments infrastructure, reveals that 70% of members of Generation Z, or those born from 1997 to 2012, make payments through apps every day.

And that trend is quickly expanding. About 50% of consumers in the study said they choose to shop at a business based on whether it lets them complete purchases with in-app payments.

One Credential allows consumers to set parameters for the type of payment method they want to use for particular transactions. For example, a consumer can direct payments under $100 to be drawn from their debit card and purchases of $100 or more to come from their credit card. 

One Credential enables users to tailor their payment preferences to best suit their personal financial goals.

And, as the name spells out, these enhancements are all available through a single digital credential. Banks and credit unions that issue cards should consider whether solutions such as One Credential would appeal to their customer base. 

By partnering with PayPal, Mastercard is signalling that more use cases may emerge from One Credential as the companies collaborate over time.

“With One Credential, we’re delivering the personalized digital experiences that build consumer confidence and trust,” Sawhney said.