The deal will allow Visa customers to easily add their cards into the PayPal digital wallet even from other banking apps.
Meanwhile, PayPal will be able use Visa’s real-time payments solution called Visa Direct to allow the cardholders to transfer funds from their PayPal account to a Visa debit card in real-time.
The companies are also planning to broaden participation in the Visa Digital Enablement Program that provides access to tokenisation technology for ensuring secure electronic transactions.
This, in turn, is expected to increase the use of PayPal at merchants who accept Visa in physical stores.
Visa Canada country manager and president Stacey Madge said: “This partnership will open new avenues for Visa and PayPal to collaborate to honour consumer choice and provide greater benefits to merchants and issuers.
“By working together, we will be able to bring more innovative products and enhance payment experiences online, in-app and in store for our joint customers.”
PayPal Canada president Paul Parisi said: “We are delighted to collaborate and drive greater value for our 6.5 million customers in Canada by offering them more choice in how and where they pay.”