American Express (NYSE: AXP) and PayPal (NASDAQ: PYPL), today announced an expanded strategic partnership that will improve the digital payments experience for U.S. American Express Card Members paying with PayPal and Venmo. The companies will work closely on a host of solutions for joint customers to include the use of Membership Rewards points for PayPal purchases and an integrated peer-to-peer payment experience. As part of the agreement, both companies will also explore additional innovative digital products and experiences.
Through this partnership, U.S. American Express Card Members will have the opportunity to:
- Use Membership Rewards points for purchases at millions of PayPal merchants online.
- Send money via Venmo or PayPal to friends and family directly from the Amex mobile app.
- Easily add American Express Cards to the PayPal wallet directly from the Amex mobile app or website.
- Pay their American Express bill with their PayPal or Venmo balance via the PayPal Instant Transfer feature.
- More clearly identify their specific American Express Cards in the PayPal wallet with Card-specific branding.
“This partnership is the product of our companies’ strong commitment to create innovative payment experiences that utilize both organizations’ core assets, including the ability for customers to pay with American Express Membership Rewards points and the integration of peer-to-peer payments into the Amex app,” said Dan Schulman, President and CEO, PayPal. “Our new partnership expands PayPal’s ubiquity, and enables us to offer consumers and merchants new and innovative product experiences. We are pleased to partner with American Express as it is a clear demonstration of positive innovation for our customers that is made possible through partnership.”
“Together we will streamline and expand the online and mobile payments experience for our Card Members, helping us become a more essential part of their digital lives,” said Stephen J. Squeri, Chairman and CEO, American Express. “This strategic partnership with PayPal will open up the use of Membership Rewards points at more small and medium-sized businesses than ever and make peer-to-peer payments more seamless for Card Members.”
PayPal will be integrating into the American Express Token Service, as well as continuing its global card acceptance relationship. PayPal and American Express will work together to implement all of these features over the course of 2019.
