PayPal will become an additional online credit and debit card processor for Shopify Payments through its PayPal Complete Payments, a payment processing solution built for marketplaces and platforms.
With the new experience, PayPal wallet transactions will be integrated into Shopify Payments in the U.S., creating a single, unified (Shopify's keyword this year – see story #1) experience for PayPal and Shopify merchants for managing orders, payouts, reporting, and chargeback flows. And as part of the agreement, PayPal’s wallet will also integrate with Shopify Payments.
PayPal CEO Alex Chriss said about the partnership, “Collaboration is the key to unlocking better industry outcomes. When we work together with merchants and partners, we innovate faster, solve problems more effectively and drive progress that benefits our customers.”
This update builds on the two companies' partnership that started in 2022, when PayPal teamed up with Shopify to introduce Shopify Payments in France.
The partnership leads to several questions:
- Wait, what about Stripe?
- Why the sudden payment processor diversification in the U.S.?
- Will U.S. merchants have a choice between PayPal and Stripe when setting up their Shopify Payments accounts or will it default to one option based on certain variables?
- If a merchant runs into underwriting issues with Stripe, will they be able to switch to PayPal (or vice-versa)?
I dropped the bottom two questions as a comment on Alex Chriss' announcement post on LinkedIn, but might not hear back before I send this week's edition — so check that post to find the answers (if he responds).
In other PayPal news this week… PayPal is integrating its debit card with Apple Wallet via its new “PayPal Everywhere” solution, and with an expansion of its rewards program, is letting consumers pick a category of spending to receive 5% cash back on. Additionally, PayPal introduced a feature called “auto-reload” that lets users set a balance threshold that automatically tops up if it drops below a chosen amount.