Building on a collaboration that dates back to 2012, PayPal and Uber are deepening ties. As part of the extended agreement, Uber will use PayPal Braintree to further extend its use of domestic debit network routing into more markets, in addition to the U.S.
The ride-hailing giant will also use PayPal’s other services, including PayPal Payouts, to deliver a smoother, more efficient payment experience for its customers.
“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 said in a prepared 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 partnership with PayPal has seen us grow to a massive scale, working together to tackle many payments challenges side by side. Our extended partnership sets us up to work strategically to support Uber’s next phase of exceptional growth. PayPal was the clear partner to take this ride with,” he added.
“Uber’s new commitment to deepen its relationship with PayPal opens up more opportunities for PayPal to generate revenue from Uber’s extensive operations and to encourage Uber customers to pay with PayPal and Venmo,” said Daniel Keyes, Senior Analyst for Merchant Services at Javelin Strategy & Research.
Taking Part in the Digital Payments Transformation
Digital payments have proven their worth in spades. They are faster, more affordable, offer more security, and are easier to keep track of. Businesses greatly benefit from digital payments as an alternative to using other payment methods, including checks. Checks can be costly, take longer to process, and it exposes the business to a higher risk of fraud. For consumers, digital payments mean making payments, anytime, anywhere, while on the go, and are convenient for those that don’t want to deal with physical cash.
Digital transactions show no signs of slowing down. In fact, according to research by TradingPlatforms.com, the total transaction value within the digital payments sector is expected to reach $9.5 trillion in 2023.