SAN JOSE, Calif.—PayPal and Visa have entered into an agreement that will see PayPal issue debit cards in Europe.
The two firms have signed a deal to collaborate in offering payment services across Europe, IBS Intelligence reported.
“Card companies have been struggling with the pressure from PayPal's meteoric rise, so this new deal will likely take some of the heat off Visa,” stated IBS Intelligence. “PayPal, which already has a banking license in Europe, will be able to offer users PayPal-branded Visa debit cards.”
PayPal has mainly used its license for treasury functions until now, but the agreement will give it a broader customer base. The move will mark a first for PayPal, which already offers debit cards in the U.S. and some prepaid card services (with Mastercard) in Italy, IBS Intelligence said.