Per the announcement, the deal expands their partnership's areas to include additional processing through PayPal Braintree, alternative domestic debit network routing across a range of geographies, instant driver, and courier payouts to PayPal and Venmo, and custom support for new business lines.
As part of the agreement, PayPal and Uber are to further build upon their relationship for global card processing powered by PayPal Braintree. Apart from conventional card processing, Uber is set to leverage the PayPal Braintree platform to expand its usage of domestic debit network routing in several markets, including the US. Furthermore, Uber will leverage PayPal value-added services such as PayPal Payouts, and several others that support creating simplified, high-performance payments experiences for Uber’s customers.
In addition to the expanded use of payment processing and alternative debit network routing included in the agreement, Uber is also set to:
Further its use of payouts with the PayPal Hyperwallet solution, enabling drivers and couriers to access their funds instantly through PayPal and Venmo (US only).
Launch combined incentives including UberOne in a broad Consumer Rewards programme to offer Uber customers savings when paying with the PayPal wallet or Venmo at checkout.
Leverage the PayPal Chargehound solution to make sense of how automation can help resolve chargebacks and produce immediate cost savings in a faster way.
Partner with PayPal on advanced authorisation optimisations, while using Network Tokens, Smart Retries, and Account Updater services to further optimise the authorisation rate and simplify the consumer experience.
Uber representatives stated that payments are central to the company’s experience, as when a spender opens their app, they expect it to work seamlessly from anywhere worldwide, and drivers are couriers increasingly look to be paid instantly. As this is a complex marketplace, Uber required partners that can match its speed, growth, and performance bar and solve complex issues such as debit routing at scale in multiple markets, and the collaboration with PayPal enabled it to grow at scale, while concomitantly helping address payments-related challenges. Per their statement, the extended partnership sets the company up to work strategically to support its next growth phase.
Further adding on this, PayPal officials advised that the companies' collaboration began with Uber’s integration of PayPal within their wallet, a payment method offering customers a level of security and known as a key competitive differentiator in multiple markets. With PayPal as a checkout option, the extension of processing services, and the addition of its payout and dispute resolution tools, Uber looks to leverage everything needed to deliver an improved experience for their drivers and riders and to further them into the future of mobility, added the spokesperson.
The press release further highlights that Uber and PayPal have cooperated from 2012 onwards to make payments simple and secure for riders and drivers alike, with Uber’s usage of PayPal’s extensive portfolio of products and services being a key contributor in driving high authorisation rates and more successful transactions. What is more, the PayPal Braintree platform has been focal to the relationship, processing Uber’s payments in approximately 200 countries and 50 currencies, enabling Uber’s global scalability with limited complexity.
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