Why PayPal has Partnered with Credit Card Companies

While PayPal (PYPL) has talked about its customer acquisition rate gaining momentum after it decided to partner with card companies Visa (V) and MasterCard (MA), this boost may just be a beneficial side effect of the partnerships. PayPal went into partnership with Visa and MasterCard with specific goals in mind, namely to enable customers to pay any way they want. At the Credit Suisse 21st Annual Technology, Media & Telecom Conference, PayPal CFO (chief financial officer) John Rainey said, “What the network agreements did for us, though, was fundamentally, they’re all about providing our customers choice to allow them the way they – to transact however they want,” adding that “if they want to use a Visa card or a MasterCard or a particular issuer card, they can do that.