Digital Transactions Authoritative, insightful and timely information for payments professionals
In an expansion of its existing processing relationship with PayPal Holdings Inc., ride-sharing technology provider Uber Technologies Inc. will begin making use of PayPal’s domestic debit network routing in the United States and other markets and enable Uber drivers to receive wages directly in their PayPal and Venmo wallets.
PayPal currently provides processing services to Uber through its Braintree platform. Uber has been a PayPal customer since 2012.
The two companies said they will also work together to launch a broader rewards program for Uber customers. That initiative will include UberOne, a monthly membership program that includes discounts on rides and food-and-beverage deliveries, as well as special offers and promotions and invitation-only experiences. UberOne members pay $9.99 a month.
In addition, Uber will make use of PayPal’s Chargehound technology to understand how automation can resolve chargebacks, and will partner with PayPal to provide more advanced customer authentication using network tokens and account-updater services.
“Payments are central. When a spender opens their app, they expect it to work seamlessly from anywhere worldwide, and drivers and couriers increasingly want to be paid instantly,” Karl Hebert, vice president of payments, risk, and identity at Uber, says in a statement. “It’s a very complex marketplace. As such, we need partners that can match our speed, growth, and high bar for performance and solve hard problems like domestic debit routing at scale in multiple markets without missing a beat. Our extended partnership sets us up to work strategically to support Uber’s next phase of exceptional growth.”
PayPal processes payments for Uber in about 200 countries and 50 currencies.
In other PayPal news, cryptocurrency-based payment gateway provider BitPay is rolling out PayPal USD, PayPal’s stablecoin issued by Paxos Trust Company, for merchants and consumers. Under the terms of the deal, PayPal USD will automatically be added as a payment option for BitPay merchant accounts. PayPal USD is backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cash equivalents. It can be redeemed one-for-one for U.S. dollars. Online-gaming software provider Xsolla will be among the first merchants to accept PayPal USD.
“When adding a new cryptocurrency for merchants to accept, we look at many factors, but among the most important is its payment utility and community involvement,” BitPay chief executive Stephen Pair says in a statement. “Supporting PayPal USD encourages mass adoption of cryptocurrency payments from PayPal’s enormous customer base.”
