Paypal and MasterCard are launching a new debit card.
ePayment firm Paypal and MasterCard on Monday announced the launch of a co-branded debit card to be rolled out to Paypal’s five million customers over the course of 2001. The card will enable customers to access the money they have stored in Paypal accounts at over 19 million MasterCard merchants worldwide.
Paypal began as a secure online payment service, allowing businesses and private customers to receive online payments by email. Customers send payment to registered Paypal users using their credit card, debit card or money that has been transferred into their Paypal account. The service, used extensively by online auctioneers and group web sites, has attracted over five million customers to date.
The decision to offer customers a debit card, which can be used to access accounts offline, has been prompted by user demand for quicker and more convenient ways to access the cash in their accounts. Customers can now make debit card transactions directly against payments made into their accounts without waiting for money to be transferred to their bank.
The move follows December’s announcement by ePayment firm Beenz that it is also extending its Internet currency scheme to the high street. Internet payment services and online currency providers are beginning to realize that customers do not consciously separate online and offline spending and instead look for ways to manage their finances across multiple channels.
Paypal’s announcement should move the payment provider one step closer to providing an all-round payment solution, gaining it a valuable advantage over its competitors in the rapidly expanding person-to-person payment market.
