Mastercard and PayPal have forged an alliance, aiming to offer more choice at the checkout for users.  

The initiative aims to offer consumers a unified payment credential that can be used across various shopping platforms, both online and in-store.  

One Credential, developed by Mastercard earlier this year, is a system that allows consumers to use a single payment credential to access multiple payment methods.  

The payment giants seek to simplify the checkout process by reducing the need to manage several cards or payment options. 

The partnership will focus on jointly developing new features that utilise the capabilities of One Credential.  

These enhancements are designed to expand the payment choices available to consumers and for more personalised payment experiences. 

The system is expected to assist PayPal users in transitioning between different types of payment methods, such as moving from debit to credit or instalment-based payments. 

Mastercard is currently deploying One Credential as a global network-level feature, enabling financial institutions to offer this payment flexibility to consumers at a larger scale. 

The collaboration between Mastercard and PayPal builds upon existing payment solutions, including the PayPal Debit Mastercard and PayPal Business Debit Mastercard.  

PayPal partnerships SVP Chris Sweetland said: “We are excited for the opportunity to innovate together with Mastercard. We both want to reduce friction for consumers and bring them more power over how they pay.” 

Mastercard chief consumer product officer Bunita Sawhney stated: “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. With One Credential, we’re delivering the personalised digital experiences that build consumer confidence and trust.” 

In February, PayPal introduced a new merchant platform, PayPal Open, which integrates all its merchant offerings under one platform.