US consumers will soon be able to make NFC mobile payments using PayPal at the point of sale wherever Mastercard is accepted. The strategic partnership between the two companies will also enable Masterpass as an option for merchants employing the PayPal-owned Braintree payment platform.

The announcement follows PayPal’s collaboration with Visa to allow in-store NFC mobile payments through the PayPal mobile wallet across the US in July 2016.

“PayPal will expand its presence at the point of sale by utilizing tokenization services from Mastercard,” Mastercard says. “This will allow consumers to use their tokenized Mastercard in their PayPal wallet to make in-store purchases at the more than five million contactless-enabled merchant locations across the globe.

“Masterpass will be added as a payment option for merchants that process payments via Braintree. Merchants that leverage Braintree as their payment platform will be able to easily integrate Masterpass into their checkout experiences, providing a seamless user experience for consumers.”

“Mastercard will be presented as a clear and equal payment option within the PayPal wallet, making Mastercard and their issuers easily identifiable to the consumer when transacting,” the payment network adds. “Under the expanded partnership, consumers and small businesses will also be able to instantly cash-out funds held in their PayPal accounts to a Mastercard debit card.”

PayPal announced that it was planning to add NFC payment capability to its mobile app at Mobile World Congress in February 2016. The payment network began piloting NFC in April last year when it reported a 40% growth in mobile payments. It then teamed up with Vodafone to allow Vodafone wallet users across Europe to make NFC mobile payments in February this year.

“Customer choice and partnership are fundamental principles for PayPal that guide how we operate as a company, giving our customers greater opportunities to more easily manage and move their money online, in-app and in-store,” says Dan Schulman, the company’s president and CEO.

“Mastercard has been a trusted partner for many years. By collaborating and innovating together, we will continue to help move digital payments forward and improve payment experiences for our mutual customers.”

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