Last year, PayPal and Mastercard decided to end their feud. PayPal had been urging customers in the US to use Automated Clearing House (ACH), a network which processes net banking, to load money into their wallets instead of cards. Card networks retaliated and threatened to cut-off access to the PayPal wallet.

PayPal relented and signed partnership (truce perhaps?) which gave them economic incentives for increased Mastercard volume, certainty on fees paid to Mastercard which removed the threat of any fees or network rules being targeted solely at the company in the US. PayPal’s digital wallet would be accepted in all physical retail locations where Mastercard contactless transactions are enabled.

Now it seems that they’re the best of friends and are extending the partnership in the Asia Pacific region as well. This deal will also allow customers and small merchants to cash out funds held in their PayPal accounts to a Mastercard-linked bank debit card.

PayPal will expand its presence at point of sales and enable Masterpass for Braintree merchants in the region. Masterpass is a digital service where customers who have Visa or Rupay cards can a create a virtual prepaid card (made by Mastercard) and load money. The payment is pulled from the virtual prepaid card and processed over Mastercard’s payment network. Merchants which process payments through Braintree will have Masterpass as a payment option.

Meanwhile, consumers will also be able to add Mastercard cards into PayPal from banking apps through collaborations with banks as well.

Other PayPal partnerships

– Similar to Mastercard, PayPal has signed a deal with Visa as well where it gets economic benefits and insurance against excessive fees.

– Google and PayPal inked an agreement where Paypal accounts can be used as a checkout option on Android Pay. The feature will be available to users in the US only.

– There is the integration on Facebook Messenger. During Q1-2017,  Facebook announced that over 1 million users have enabled Paypal payments within Facebook Messenger.

-PayPal and Apple announced an expansion of their iTunes integration, allowing customers to buy games, music, movies and in-app purchases with PayPal, in 12 countries, including US, Australia and parts of Europe. This is expected to expand to more countries in the coming month.

–  It partnered with Citi, Fidelity National Information Services (FIS), Alibaba, and Discover.