Mastercard and PayPal have announced a new collaboration to deliver greater flexibility, personalisation, and simplicity at checkout. The two payment giants are joining forces to expand access to Mastercard’s recently introduced One Credential, a digital innovation that enables shoppers to use a single, unified payment identity—whether they’re shopping in-store or online.
Rather than juggling between various cards or payment apps, consumers will now be able to use one credential that supports multiple payment methods, tailored to their preferences and financial needs. This means no more switching between debit, credit, or digital wallets. Instead, users can set preferences once and enjoy a seamless, personalised payment experience across all platforms.
“We are excited for the opportunity to innovate together with Mastercard,” said Chris Sweetland, SVP of Partnerships at PayPal. “We both want to reduce friction for consumers and bring them more power over how they pay.”
This new phase of collaboration between Mastercard and PayPal will focus on co-developing additional features and bringing One Credential to more users around the world.
Addressing the New Digital Consumer
Today’s consumers, particularly Gen Z, are redefining expectations in the financial space. They are not just looking for speed and security; they want solutions that reflect their values, habits, and lifestyles. Research from Mastercard shows a clear preference for personalised payment experiences — ones that adapt over time and offer flexibility as financial needs evolve.
“We’re excited to empower consumers with more choice and control over how they pay together with PayPal, building on our collective strength of global payments innovation,” said Bunita Sawhney, Chief Consumer Product Officer at Mastercard. “With One Credential, we’re delivering the personalised digital experiences that build consumer confidence and trust.”
Whether someone starts with a basic debit option or later transitions to structured credit like instalments, the unified credential supports their financial progression, all within a simple digital-first interface.
A Smarter Financial Path
One Credential isn’t just about convenience — it also has the potential to support healthier financial behaviour. For example, PayPal users can use the platform to gradually build creditworthiness, moving from debit to structured credit offerings within a familiar ecosystem. As consumers advance through different financial stages, their payment credential evolves with them, offering continuity without complication.
This rollout marks a significant milestone in Mastercard’s broader strategy to provide One Credential as a network-level capability for issuers around the world. Financial institutions will now be better equipped to offer dynamic, tailored experiences that respond to the real-time needs of their customers.
The collaboration also strengthens an already longstanding partnership between Mastercard and PayPal, which includes products like the PayPal Debit Mastercard and PayPal Business Debit Mastercard.