PayPal Holdings, Inc. (NASDAQ: PYPL) and Uber Technologies, Inc. (NYSE: UBER), announced an extension of their multi-year relationship, furthering PayPal’s role as a key operational partner in Uber’s continued growth in both its core and new lines of business in markets all over the world.
As part of the agreement, PayPal and Uber will continue “to build upon their substantive relationship for global card processing powered by PayPal Braintree.”
In addition to conventional card processing, Uber will “leverage the PayPal Braintree platform to expand its use of domestic debit network routing in several markets, including in the U.S.”
Uber will also leverage PayPal value-added services “including PayPal Payouts and several others that support in creating seamless, high-performance payments experiences for Uber’s customers.”
Karl Hebert, Vice President of Payments, Risk, and Identity at Uber, said:
“Payments are central to Uber’s magical experience. 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. 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.”
In addition to the expanded use of payment processing and alternative debit network routing included in the new agreement, Uber will also:
- Extend its use of payouts with the PayPal Hyperwallet solution, so drivers and couriers will have the option to access their funds instantly through PayPal and Venmo
- Launch combined incentives including UberOne in a broad Consumer Rewards program to provide Uber customers with savings when they pay with the PayPal wallet or Venmo at checkout.
- Leverage the PayPal Chargehound solution to understand how automation can help resolve chargebacks and more quickly produce immediate cost savings.
Partner with PayPal on advanced authorization optimizations, while using Network Tokens, Smart Retries, and Account Updater services for further authorization-rate optimization and a more seamless consumer experience.
Kurt Campisano, Senior Vice President of Global and Strategic Accounts at PayPal, said:
“With PayPal as a checkout option, the extension of processing services and the addition of our payout and dispute resolution tools, Uber is pulling on all of the levers they need to deliver a superior experience for their drivers and riders and to propel them into the future of mobility.”
