PayPal and Bank of America have announced a partnership which will allow customers of the lender to conduct transactions with PayPal both in retail outlets. The partnership will also allow PayPal users to link their accounts with cards issued by Bank of America.
Building on the partnership, next year will see customers of the bank get enhanced experiences when shopping using PayPal. Some of these enhanced experiences include being able to make in-store payments using PayPal by use of either Visa or MasterCard which will support the forthcoming Near Field Communications mobile wallet of PayPal.
The enhanced experiences will also include a simpler method of linking PayPal and Bank of America accounts as well as enabling cards issued by the lender to be digitally represented on PayPal Wallet. Additionally, convenience and security will be improved when shopping in-app, online and in-store by use of fraud tools, analytics, data and tokenization technology.
“We’re always looking at ways we can deliver secure, convenient and fast payment solutions to meet our customers’ needs. Whether it is in-store, in-app or online, this partnership provides yet another option for the empowerment of customers,” said Bank of America’s Enterprise Payments head, Mark Monaco.
Besides Bank of America, PayPal has also been forming partnerships with other leading financial institutions as well as other tech companies. In the last 18 months some of the companies PayPal has entered into strategic partnerships with include JPMorgan Chase, Visa Inc, Apple Inc. PayPal also recently entered a cross-border shopping deal with Baidu, the Chinese search giant, allowing shoppers in China numbering 700 million to connect with PayPal merchants numbering in excess of 17 million.
As a result of the alliances the total number of customers that PayPal now has reached 210 million with 6.5 million of them having been added in this year’s Q2. The frequency of transactions has also increased by 10% with the average number of transactions per account being 32.2 in the last one year.
According to the chief executive officer of PayPal Holdings, Dan Schulman, the payments platform is anticipating adding about 25 million new customers in 2017 following the various deals and partnerships that have been formed.
In its latest quarterly results, the earnings guidance for PayPal was revised upwards and the per-share earnings are expected to be above $1.80 against analyst estimates of $1.78. Annual revenues are expected to be above $12.78 billion against analyst estimates of $12.72 billion.